How to buy and sell foreign exchange to make money

The demand for investment and financial platforms will become more and more diversified, in which the foreign exchange trading as a financial project also has a great attraction, want a well-organized knowledge points? The following is my carefully organized knowledge points to make money with foreign exchange trading, just for reference, we take a look at it.

First, how to calculate the foreign exchange trading?

1, "point": foreign exchange margin trading, the smallest unit to become "point".

For example, the euro against the U.S. dollar currency pair from 1.1120 fluctuations to 1.1121 is 1 point fluctuations, the dollar against the yen currency pair from 129.11 to 129.12 is 1 point fluctuations.

For example, a 50-point swing is, for example, EURUSD 1.1120 to 1.1170 or 1.1120 to 1.1070 is a 50-point swing.

2, "point value": in the case of trading lot 1 standard lot, 1 point of fluctuations (regardless of trading platform leverage multiples) is 10 U.S. dollars in fluctuations, so 50 points in the case of 1 standard lot is 500 U.S. dollars in fluctuations.

3, "foreign exchange profit and loss calculation": due to the foreign exchange is a two-way trading mechanism, so foreign exchange transactions can buy up, but also can buy down, so only when we look at and make the right direction of the market when we are making money, otherwise it is a loss;

For example, we chose to do more euro against the dollar, the euro against the U.S. dollar from 1.1120 to 1.1120. EURUSD from 1.1120 to 1.1170, we made a profit of 50 points, 1 standard lot is 500 dollars, and vice versa is a loss of 50 points.

Second, how do you make money buying and selling foreign exchange?

Foreign exchange is the exchange between two national currencies, because the exchange rate between the two currencies is changing from time to time, so the foreign exchange exists in the operability. Foreign exchange to make money mainly from the exchange rate difference, to give two examples of foreign exchange operations:

1, the bank foreign exchange:? For example, now the exchange rate of the yuan against the dollar is 6.8347, you put 68,347 yuan for 10,000 U.S. dollars, tomorrow the exchange rate becomes 6.8447, you then convert the dollar back to the yuan, you can change to 68,447 yuan, you earn 100 yuan.

2, electronic disk foreign exchange transactions:? Electronic disk foreign exchange transactions in fact and the bank has a similar place, also earn exchange rate differences, the main difference lies in, first of all, the electronic disk foreign exchange transactions more than a short direction, that is to say, regardless of whether the exchange rate is up or down, as long as the direction of the operation of the right, you can make a profit; there is also, the electronic disk foreign exchange transactions is the bar trading, will be the profit and loss are accordingly enlarged, the bar is generally in the 100 ~ 500 times The most important thing to remember is that you have to be able to get the best out of it.

3, with good foreign exchange leverage:

Leverage in human history has played an important role. Humans of the New Age used levers to pry stones, and the Egyptians used levers to build magnificent pyramids. The ancient Greek mathematician Archimedes even boasted "give me a fulcrum, can pry up the entire earth!"

Foreign exchange transactions, leverage also played a powerful force. With just a few hundred dollars, you can mobilize tens of thousands of dollars through "leverage". Leverage also comes in different "multiples", like the United States, where the highest leverage is 50 to 1, and the United Kingdom, where leverage is mostly 200 to 1 and 100 to 1. The type of leverage you choose depends on your trading preferences.

To buy a standard lot of EUR/USD (EUR/USD=1.000), for example, to buy the euro, at this time the exchange rate, you do not need to sell $100,000. You can use "leverage" to one hundred to one leverage, for example, you only need to sell 1,000 U.S. dollars, you can buy 100,000 euros. If you use 200 to 1 leverage, you only need to sell $500. At this point, you have established a position of 100,000 euros, and every time the euro/dollar fluctuates by one point, your account incurs a profit or loss of 10 dollars.

This is leverage. The higher the leverage, the less "margin" you need to put up. Brokers clearly indicate the amount of margin required on their trading platforms.

It's important to note that leverage is a double-edged sword. Leveraged forex trading can both maximize your profits and losses. With leverage, you can buy larger quantities of currencies, and when currencies appreciate, you are making more money. But if those currencies depreciate, the more you buy, the more you lose.

Model Foreign Exchange Sale and Purchase Agreement

Contract Law Cases

1. Case Study 1: On Invitation to Offer

Is a cab soliciting for passengers on the street an invitation to offer?

2. Case Study 2: Modification of an Offer

French company A placed an order with Chinese company B: "Supply 50 tractors, 100 horsepower, at a price of US$4,000 each, to be loaded on a ship three months after the conclusion of the contract, and to be paid by irrevocable demand letter of credit. Please telegraph reply." Telegram B replies, "Accept your terms and ship upon conclusion of contract." QUESTION: Was the contract between the parties formed and why?

3. Case Study 3: On the Revocation of an Offer

A is an antique dealer and A asks B to complete the restoration of ten paintings within three months for a price not exceeding a specific amount.B informs A that, in order to decide whether or not to commit to the offer, B finds it necessary to begin the restoration of one of the paintings before it can give a definitive answer within five days.A agrees and, based on the reliance on A's offer, B immediately begins work. Question: Can A revoke the offer within these 5 days?

4, Case Study 4: Offer to revoke

A company in New York City, the United States, called on October 22 to a company in Shanghai, China, B to place an order (offer) to sell a batch of lumber. Set out the conditions of the transaction, but did not specify the period of validity. company B received the call on the same day, after studying the decision, on the 22nd at 11:00 a.m. to the Shanghai Telegraphic Bureau to send a telegram of acceptance of the offer, the telegram on the 22nd at 1:00 p.m. to the company. During this period, on account of the increase in the price of lumber, Company A delivered a telegram to the telegraph office in New York City at 9:15 a.m. on the 22nd, which read as follows:-"Due to the increase in the price of lumber, my offer of October 20 is withdrawn." Company A's telegram was delivered to Company B at 11:20 a.m. on the 22nd. It is asked whether Company A succeeded in withdrawing its offer and whether a contract was formed between A and B?

5. Case Study 5: Late Commitment

Offeror A expressly states in its offer that March 31 is the deadline for committing to its offer. Offeree B's commitment was served on April 3, A. Offeror A was still interested in the contract and was willing to "accept" B's late commitment and immediately notified B. A's notice was served on April 4, B. Question: Was the contract formed and when was it formed?

7. Case Study: Damages

On July 2, A asked B, a travel agent, to book 20 rooms in London for August 1 at a price of ￡55 each, and on July 15, A learned that B had not yet booked the rooms. A waited until July 25 to commission a re-booking, but was only able to get rooms at ￡700 each. If A had acted on July 15, he could have booked a room for ￡600 a room. Q: How much compensation can A expect to receive from Company B in pounds sterling.

8. Case study: force majeure

Company A, a manufacturer in country A, and company B, a public utility in country B, signed a contract for the sale of a nuclear power plant from company A to company B. Under the terms of the contract, company A undertook to supply uranium for 10 years at a fixed price for that period for the nuclear power plant, and company B paid for the uranium in United States dollars, and paid in New York. Q: If, after five years, the government of country B imposes exchange controls that prohibit company B from making payments in any currency other than the currency of country B, is company B relieved of its obligation to make payments in U.S. dollars, and does company A have the right to terminate the contract for the supply of uranium?

International Sale of Goods Law Cases

1, FOB Risk Transfer

Two companies, A (seller) and B (buyer), entered into a contract for the purchase of a complete set of equipment FOB London (delivery on board a ship in London), and buyer B entered into a contract for the shipment of the goods with C (the ship's party). The seller in accordance with the buyer's instructions will be transported to the port of London, C in the use of the ship's boom sets of equipment from A's ship to the C ship, the boom broke, resulting in damage to the goods, at this time the goods have not yet crossed the ship's side, the risk has not been transferred to the buyer, the seller has to bear the loss of the seller A to the ship responsible for loading and unloading of the ship's side of C to make a claim.

Therefore, in accordance with the principle of the ship's rail, if the goods are unhooked into the sea when loading the ship, the risk is borne by the buyer because the goods have not crossed the ship's rail, but as long as the goods have crossed the ship's rail, such as the goods fell on C's deck resulting in damage to the goods, then the risk is borne by the buyer.

2, FOB risk in transit

Case: a company to FOB conditions to the overseas sale of 300 tons of rice, loading by the notary public inspection, the goods meet the quality requirements of the contract, the seller in the goods loaded in a timely manner after the shipment of shipping notification, but due to the transport of waves is too large, the rice was seawater-soaked when the goods arrive at the destination port, can only be sold at the price of rice, the buyer can not be sold at the price of rice, therefore, the buyer is the buyer. When the goods arrived at the port of destination, they could only be sold at the price of third-grade rice. Therefore, the buyer demanded that the buyer compensate for the loss of price difference caused by the deterioration in the quality of the rice.

Question: Is the seller liable for this loss and why?

Diagnosis: According to Incoterms, FOB, CIF or CFR terms, the seller only bears the risk of the goods in the port of shipment before crossing the ship's rail, the risk of the goods after crossing the ship's rail is borne by the buyer, and in this case, the risk of the goods occurred in the sea transportation, so it belongs to the risk of the goods after crossing the ship's rail at the port of shipment, so the loss of the price difference should be borne by the buyer. The buyer to bear.

3, CFR trade terms under the seller's obligation to ship notification

Case: a German company signed a CFR contract with a company in our country, the German company to export chemical raw materials to our company. The contract stipulates: the German company in April 2005 delivery. After the German company delivered the goods according to the time specified in the contract, the cargo ship set sail to Qingdao on the same day, and on May 10th, the German company sent a fax to our company, informing that the goods had been loaded on the ship. On the same day, we took out insurance with the insurance company. However, after the cargo arrived at the port of destination, we found that the loss of the cargo had occurred on May 8 during the sea transportation.

Question: Which party is responsible for the loss incurred during the above period?

Analysis: In CFR terminology, the seller is obliged to give the buyer sufficient notice that the goods have been loaded on board the ship after the goods have been loaded on board the ship. This obligation is directly related to the buyer's ability to take out marine transportation insurance on the goods being transported. If the seller is negligent in notifying the buyer, the buyer fails to insure the goods in time, and the resulting loss should be borne by the seller. This was the case in the present case. The German party in April that the goods have been loaded on board the ship, should be issued in April to the buyer notice of loading, and the actual situation is, to May 10 to issue a notice of loading, resulting in the buyer can not be loaded on board the ship to May 9 period of the risk of possible insurance, that is, resulting in a delay in the buyer to insure the risk of loss can only be borne by the seller of the German company. In CIF, FOB trade terms, the seller bears the same responsibility.

4, CIF contract for the transportation of goods at risk

Case: a company in China and South Korea signed a CIF contract, the import of electronic parts. After the conclusion of the contract, the South Korean company on time delivery. Our company received the goods, after inspection found that the goods outer packaging rupture, the goods were seriously damaged. The Korean company issued an offshore certificate, proving that the loss of goods occurred in transit. The transportation risk of the goods was not insured by both parties.

Question: Who should bear the loss of the above risk?

Analysis: In CIF terminology, the buyer bears the risk of the goods after they have crossed the ship's rail at the port of shipment. In this case, the loss of rupture of the outer packaging of the goods occurred during transportation, and the risk belongs to the risk of the goods after they have crossed the ship's rail at the port of shipment, therefore, it should be borne by the buyer. However, the seller, Korean company, had the responsibility to insure the risk of the goods in the sea transportation according to Incoterms, but in fact, the seller violated the provision and did not insure the goods, so that the buyer could not obtain the insurance documents and thus could not claim for the above loss from the insurance company, therefore, the risk of the rupture of the outer packaging of the goods was not borne by the buyer, but should be borne by the seller, the Korean domestic company.

5. Seller's Liability for Warranty

Case: In 1990, a machinery import and export company sold a number of machine tools to a French businessman. France will be resold to the United States and some European countries. After the machine tools entered the U.S., the U.S. importer and exporter was sued for infringement of valid U.S. patents, and the court ordered the defendant to compensate for the patentee's losses, and then the U.S. importer pursued the French exporter, and the French businessman claimed against us.

Question: Should we be held liable and why?

Diagnosis: According to the Convention, a machinery import and export company of ours, as a seller, should undertake the obligation to the seller, the French merchant, that the goods sold will not infringe the intellectual property rights of others, but this guarantee should be limited to the country where the buyer informs the seller of the country where the goods are to be sold to, otherwise the seller only guarantees that it will not infringe the rights of the intellectual property rights of the buyer in the buyer's country. the country where the buyer is located.

6. Temporary suspension of performance of the contract

Case: A Canadian company entered into a contract with a Thai company for the export of precision instruments. The contract stipulates that the Thai company should be in the process of instrument manufacturing progress advance payment of goods. After the conclusion of the contract after the conclusion of the contract, the Thai company was informed that the Canadian company to supply the unstable quality of the instrument, and then immediately notify the Canadian company: it is reported that the quality of your company's supply is unstable, so we temporarily suspend the performance of the contract. After being notified, the Canadian company immediately provided the Thai company with a written guarantee that if it could not fulfill its obligations, the bank would reimburse the Thai company for the money it had paid. However, after being notified of this, the Thai company still insisted on the temporary suspension of the contract.

Question: Was the Thai company's action appropriate?

Analysis: A party who declares a suspension of performance must immediately notify the other party, and if the other party provides sufficient guarantees for the performance of the obligation, it must continue to perform the obligation. This is because the suspension temporarily stops the performance of the contract, not neutralizes it. Therefore, the party who suspended the performance of the contract must continue to perform its contractual obligations as long as the other party provides adequate security for its performance (e.g., a bank guarantee). Therefore, the Thai company could only continue to perform the contract and could not suspend its performance.

7, under the batch delivery of the termination of the contract

case: an Italian company and our company signed a contract for the export of complete sets of machinery and equipment for the processing and production of marble, the contract provides for the delivery of four batches. In the delivery of the first two batches of goods are different degrees of quality problems. In the third batch of goods delivered, the buyer found that the quality of the goods still does not meet the contract requirements, so it is presumed that the quality of the fourth batch of goods is also difficult to ensure that the seller to the Italian company to cancel the entire contract.

Question: Is our company's claim reasonable?

Diagnosis: the goods purchased by our company were a complete set of machinery and equipment for processing and producing marble, and any quality problem of any batch of goods would lead to the unavailability of the set of equipment, that is to say, the batches of goods were interdependent, therefore, the Italian company's behavior constituted a fundamental breach of the contract, and the buyer could declare that it could rescind the whole contract. Unless the first three batches of goods are spare parts for the set of equipment, the fourth batch of goods is the key equipment of the set of equipment and the quality of the fourth batch of goods does not exist, our company is not entitled to rescind the contract.

8, the transfer of risk of the goods

Case: a Hong Kong company and a company in China and October 2, 1997 signed a contract for the import of clothing. November 2, the goods shipped, November 4, the Hong Kong company signed a contract with a Swiss company, will be sold exclusively in the batch of goods, at this time the goods are still in transit.

Question: When is the risk of the goods transferred from the Hong Kong company to the Swiss company?

Analysis: For goods sold in transit, the risk passes to the buyer from the time the contract is concluded. However, if the circumstances show that this is necessary, the risk is assumed by the buyer from the time when the goods are delivered to the carrier who issued the document containing the contract of carriage. Nevertheless, if the seller knew or ought to have known at the time of the conclusion of the contract that the goods had been lost or damaged and he did not inform the buyer of this fact, the seller was responsible for such loss or damage. In this case, after the shipment of the goods, the Hong Kong company entered into a contract with the Swiss company on November 4 to resell the goods, and therefore the risk of the goods passed to the Swiss company to bear from that date.

9, whether it constitutes a fundamental breach of contract

Case: February 8, 1985, a Hong Kong, a power company limited A and Zhuhai Gongbei company B signed a contract of purchase and sale. The contract stipulates: Gongbei company to Hong Kong company ordered 200 units of Nissan Canon copiers, the price of CIF Kyushu port 1499 U.S. dollars a unit, the delivery deadline for April 15, the mode of payment for the letter of credit payment. In the performance of the contract, on April 13, Company B received a shipment telegram notification, which stated that all the goods were shipped to the port of Kyushu in Zhuhai on April 12, and indicated the contract number and the L/C number. on April 19, Company B received a notice of pickup from the port of Kyushu, and the terminal presented the company with a copy of the bill of lading accompanying the shipment. The date of loading on the bill of lading was April 13, and the arrival date was April 16. Company B thought that Hong Kong Company A did not deliver the goods on April 15 as stipulated in the contract, and the telegram claiming that the goods were loaded on April 12 was untrue, so it did not take delivery of the goods at once. on May 2, Company B received a notice of commitment from Bank of China, Zhuhai Branch, which was rejected on the ground of delayed delivery from the Hong Kong Company, and on the same day, it telegraphed to the Hong Kong Company to declare the cancellation of the contract. Company B refused to pay on the ground that Hong Kong Company had delayed the delivery, and called Hong Kong Company on the same day to declare the termination of contract. The Hong Kong company did not agree to terminate the contract and objected to it, which led to a dispute.

Question: What is meant by fundamental breach of contract and under what circumstances can the remedy of rescission be used.

Analysis: In this case, Company B believes that Company A's one-day delay in delivery constitutes a fundamental breach of contract, and therefore wishes to take the remedy of rescission of the contract. According to Article 25 of the Convention, a fundamental breach of contract occurs when one party's breach of contract results in a loss to the other party that effectively deprives him of what he is entitled to expect under the contract. The case of company B is delayed by one day, such a delay of course also belongs to the breach of contract, causing damage to company B, but not to the extent that actually deprived the buyer of the contract provisions of the seriousness of the right to look forward to get, for seasonal sensitive goods, one day late may lead to very serious consequences and for the copier this report equipment, one day late to the loss caused by the general will not seriously affect the contracting party to enter into the contract period expect economic benefits. The economic benefits expected by the contracting party when entering into the contract. Therefore, in this case, company A's breach of contract does not reach the degree of fundamental breach of contract, therefore, the buyer to take the remedy is not to terminate the contract, but should be damages.

10, the buyer to cancel the contract

January 1993, China company A and Japan company B has signed a contract by company B according to the CIF delivery terms of the contract of 80,000 for the production of picture tubes for the electron gun on time to the Chinese company A. The company A in the experimental and experimental production, and the company A in the experimental and experimental production, and the company A in the experimental and experimental production. After the arrival of the goods, Company A found that there were quality problems with the electron guns in the experimental use. After consultation between the two parties, agreed by the Chinese commodity inspection organization for quality inspection, the inspection station proved that the quality of the electron gun does exist large quality defects. company A then negotiated with company B and reached a claim agreement. The agreement stipulated that: (1) Company A would not return to Company B the part of the received goods that had been used; (2) Company B should ship 75,000 electronic guns that met the quality requirements to Company A within three months; (3) after the arrival of the replacement goods, the buyer would take samples for testing and if the non-compliance rate was greater than 20%, the whole batch would be returned. As a result, the goods delivered by Company B still did not meet the quality requirements. The two parties negotiated here, and Company A proposed that Company B could replace the brand of the electron gun it should provide with "Ritian" or "Star" brand, and Company B agreed to provide the goods according to Company A's requirements, and made this part of the claim agreement. Later, due to the reason of the new supplier, Company B still failed to fulfill its obligations, and in May 1994, Company A filed an arbitration request to the Arbitration Commission, requesting: (1) Company B to refund the price of 75,000 electronic guns and interest; (2) Company B to bear the economic losses caused by the 5,000 electronic guns that had already been used; (3) Company B to bear the costs related to the relevant tests; (4) Company B to bear the costs of storage, the difference in price and other economic losses; and (5) Company B to bear the cost of storage, the difference in price and other economic losses. price difference and other economic losses shall be borne by Company B.

Question: Does Company B constitute a fundamental breach of contract, and what rights does Company A have?

Analysis: We talked about the buyer's obligation to guarantee the quality of the goods, and in this case, the quality of the electronic gun provided by Company B has large quality defects, which made the other party suffer damages, and belongs to the fundamental breach of contract. Although Company B made remedies, the remedies still caused Company A unreasonable inconvenience or delay. Therefore, Company A was entitled to rescind the contract and claim damages, and the seller should bear the cost of remediation.