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The basic knowledge of financial foreign exchange knowledge mainly includes: foreign exchange introduction, foreign exchange quotation, foreign exchange trading, foreign exchange quotation, foreign exchange analysis, foreign exchange study, foreign exchange reserves, foreign exchange deposits and so on. In order to improve the investment effect of individual foreign exchange transactions, investors should have knowledge of finance, international finance, monetary banking and economics, especially the basic knowledge of foreign exchange and foreign exchange market. The following are some basic foreign exchange knowledge and introductory knowledge about foreign exchange and foreign exchange market that a knowledge-based entry-level customer of personal firm foreign exchange trading should basically understand. What is the best way to let you know how to speculate in foreign exchange?

1, foreign exchange knowledge Where is the largest foreign exchange trading center in the world?

A: This is the London foreign exchange market. As the oldest international financial center foreign exchange market in the world, the formation and development of London foreign exchange market is also the earliest foreign exchange market in the world. Long before the First World War, the foreign exchange market in London had begun to take shape. 1979 10 in June, Britain completely abolished foreign exchange control, and the foreign exchange market in London developed rapidly. There are about 600 banks' foreign exchange markets in the City of London, and almost all major international banks have foreign exchange market branches here, which greatly enlivens the foreign exchange market in the London market. Due to its unique geographical location, London's foreign exchange market is located at the intersection of two major time zones, connecting the foreign exchange markets in Asia and North America. When Asia closed, London just opened. When it closed, new york was the beginning of a working day, so trading was extremely active during this period. London became the largest foreign exchange trading center in the world, which had an important impact on the trend of the entire foreign exchange market.

2. Foreign exchange knowledge Where is the most active foreign exchange market in North America?

A: In new york. After World War II, with the US dollar becoming the world reserve and settlement currency, new york became the settlement center of the US dollar in the world foreign exchange market. New york's foreign exchange market has rapidly developed into a completely open foreign exchange market and is the second largest foreign exchange trading center in the world. At present, more than 90% of the world's US dollar receipts and payments are made through new york's "inter-bank clearing system", so new york's foreign exchange market has irreplaceable functions of clearing and allocating US dollars, and its position is increasingly consolidated. At the same time, the importance of new york's foreign exchange market is also reflected in its important influence on the exchange rate trend. The exchange rate changes in new york foreign exchange market are more drastic than those in London. There are three main reasons: the economic situation in the United States has a decisive impact on the world; Various financial markets in the United States are developed, and the stock market, bond market and foreign exchange market interact and are interrelated; Speculative forces, mainly American investment funds, are very active, causing exchange rate fluctuations. Therefore, the exchange rate changes in new york's foreign exchange market have attracted special attention from foreign exchange dealers all over the world.

3. Foreign exchange knowledge Why is the bank's buying price lower than the selling price?

A: The bank's bid price refers to the quotation for the bank to buy the benchmark currency. Bank selling price refers to the quotation that the bank sells the benchmark currency. The difference between the bid price and the bid price represents the bank's return on taking risks. The bid-ask spread of frequently traded euro, yen, pound and Swiss franc is relatively small, while the bid-ask spread of lightly traded currencies is relatively large.

4. Foreign exchange knowledge How many ways are there to express the exchange rate in the international foreign exchange market?

A: There are generally two kinds, direct quotation method and indirect pricing method.

5. Foreign exchange knowledge What is a direct quotation?

A: Direct quotation is also the knowledge of the so-called plain code marking method. It is a way to express a unit's foreign currency exchange rate in domestic currency. Generally speaking, foreign currency of 1 unit or 100 unit can be converted into local currency. The more valuable the local currency is, the less local currency can be exchanged for one unit of foreign currency, and the smaller the exchange rate value is; On the other hand, the less valuable the local currency is, the more it can be converted into foreign currency, and the greater the exchange rate value. Under the direct quotation, the fluctuation of foreign exchange rate is inversely proportional to the change of the value of domestic currency: the local currency appreciates and the exchange rate declines; The local currency depreciates and the exchange rate rises. Most countries use direct quotation. Most of the exchange rates in the market are also directly quoted exchange rates. Such as: US dollar against Japanese yen, US dollar against Hong Kong dollar, US dollar against RMB, etc.

6. Foreign exchange knowledge What is indirect pricing method?

A: Indirect pricing method is also called quantitative pricing method knowledge. It is a way to express the exchange rate of a certain unit of domestic currency in foreign currency. Generally speaking, how many foreign currencies can be exchanged for the local currency of 1 unit or 100 unit? The more valuable the local currency is, the more foreign currencies can be converted in the unit local currency, and the greater the exchange rate value; On the other hand, the less valuable the local currency is, the less foreign currency can be converted into local currency, and the smaller the exchange rate value is. Under the direct quotation, the fluctuation of foreign exchange rate is directly proportional to the change of domestic currency value: the local currency appreciates and the exchange rate rises; The local currency depreciated and the exchange rate fell. The former Commonwealth countries often use indirect pricing method, such as Britain, Australia and New Zealand. The exchange rates using indirect pricing method in the market mainly include British pound against the US dollar and Australian dollar against the US dollar.

7. Foreign exchange knowledge What is a cross exchange rate?

A: In the international market, almost all currencies have exchange rates against the US dollar. The exchange rate of one non-US dollar currency to another non-US dollar currency often needs to be calculated by these two exchange rates against the US dollar, and this calculated exchange rate is called cross exchange rate. A remarkable feature of cross exchange rate is that one exchange rate involves the exchange rate between two non-US dollar currencies.

8. Foreign exchange knowledge How to calculate foreign exchange cross quotation?

A: There are several ways to calculate the cross exchange rate:

(1) are all direct quotation currencies.

Buying price and selling price

USD/JPY:120.00120.10

(cross-cutting) bid price and selling price

Deutsche Mark/Yen = 66.33 66.43

USD/DM: 1.8080

(2) Both are indirect quotation currencies.

Buying price and selling price

Euro/USD:1.10/0-1.1020

(cross-cutting) bid price and selling price

Euro/GBP = 0.6873 0.6883

GBP/USD:1.6010—1.6020

(3) direct quotation currency and indirect quotation currency

Buying price and selling price

USD/JPY:120.10120.20

(multiply in the same direction) buying price and selling price

Euro/JPY =132.17132.40

Euro/USD:1.10051.10/5

9. What is the basic point of "point" in foreign exchange rate?

According to market practice, the price of foreign exchange rate usually consists of five significant figures. Counting from right to left, the first place is called "X point", which is the smallest unit of exchange rate change; The second name is "X ten", and so on.

For example: 1 Euro =1.101USD; 1 USD = 120.55 yen

The euro changed from 1. 10 10 to1.10/5, indicating that the euro rose 5 points against the dollar.

USD/JPY changed from 120.50 to 120.00, which means USD/JPY fell by 50 points.

10. Does the fixed exchange rate in the foreign exchange market mean a fixed exchange rate?

A: No. Fixed exchange rate refers to the exchange rate between one country's currency and another country's currency is basically fixed. /kloc-The gold standard period from the early 9th century to the 1930s, and the international monetary system centered on the US dollar from the end of World War II to the early 1970s, implemented a fixed exchange rate system. The fixed exchange rate is not completely fixed, but fluctuates around a relatively fixed parity. For example, after World War II, the fixed exchange rate system centered on the US dollar, the official exchange rate of the currencies of IMF member countries against the US dollar was parity, and the exchange rate of member countries could only fluctuate around parity 1%, and the central bank intervened.

1 1. When does the floating exchange rate start?

A: The floating exchange rate in the foreign exchange market means that the exchange rate between one country's currency and other countries' currencies has no fluctuation range, but is determined by the relationship between supply and demand in the foreign exchange market. 197 1 On August 5, 2008, the United States implemented a new economic policy and allowed the exchange rate of the US dollar to float freely. By 1973, countries generally implemented floating exchange rate system. Since then, the foreign exchange market has developed with the constant fluctuation of various exchange rates.

12, foreign exchange knowledge How many kinds of knowledge does floating exchange rate have?

A: According to whether the government intervenes in the foreign exchange market, floating exchange rate can be divided into two kinds of introductory knowledge: "free floating exchange rate" and "managing floating exchange rate". In real life, the government does not take any intervention measures on the foreign exchange market exchange rate of its own currency, and there is almost no foreign exchange market in countries that completely adopt free floating exchange rates. Because the exchange rate has a great influence on a country's balance of payments and economic balance, most governments control the trend of the exchange rate by adjusting interest rates, buying and selling foreign exchange in the foreign exchange market and controlling capital flows.

13. What is the linked exchange rate system in Hong Kong's foreign exchange market?

A: Hong Kong successfully implemented the linked foreign exchange rate system at 1983. From 1983 10 10/7, note-issuing banks will convert 1 USD into HK$ 7.8, and pay USD to the Exchange Fund in advance in exchange for the equivalent HK$ "debt certificate", and then issue additional HK$ cash. At the same time, the government also promised that the note-issuing banks can also exchange Hong Kong dollars at this price after the cash in Hong Kong dollars returns from circulation. After the implementation of the linked exchange rate system, maintaining exchange rate stability has become the only goal of Hong Kong's monetary policy. Since its birth, the linked exchange rate system has worked well for 16 years, helping Hong Kong avoid the devaluation crisis of Asian currencies. It will also bring short-term and medium-term links to Hong Kong's economy.

14. Buy (sell) when the foreign exchange market is rumored, but sell (buy) in real time?

A: Like the stock market, some foreign exchange news and even rumors are often circulated in the foreign exchange market. Some foreign exchange news proved to be true afterwards, and some foreign exchange news proved to be just rumors afterwards. What traders do is to buy as soon as they hear the good news and sell as soon as the news is confirmed. On the contrary, when bad news comes out, sell it immediately, and once the news is confirmed, buy it back in the foreign exchange market immediately. If the transaction is not fast enough, it is likely to lead to losses due to market changes.

15, foreign exchange knowledge What is the foreign exchange market of the State Administration of Foreign Exchange?

A: The organization responsible for collecting balance of payments statistics. Including the introduction of foreign exchange bureau, policies and regulations, statistical data, business guide, foreign exchange knowledge, etc.

16. Is the national foreign exchange market safe?

A: Yes. The foreign exchange market is under the unified management of China Bank's foreign exchange quotation.

17. How can foreign exchange knowledge reasonably control the risk knowledge of entering the foreign exchange market?

A: In fact, the risk controllability of foreign exchange investment is much higher than that of other commodities. However, due to the mode of margin trading, it is very important in risk control, and it is more cautious than other financial products. The risk of foreign exchange trading mainly comes from two aspects: one is the risk of capital planning, and the other is the risk of trading mentality. Foreign exchange margin trading is characterized by small funds and large profits. It is precisely because of this feature that investors often ignore their own risks while pursuing profits too enthusiastically. Generally speaking, the minimum deposit required by dealers is mostly between 3% and 5%. It should be emphasized here that the lowest margin does not mean that the lowest margin is the best for every transaction. For the margin of 5%, that is, the credit transaction amount of 20 times the operating principal, its fluctuation range has also increased by 20 times, and the fluctuation of the day is 1 \.

18. What are the specific forms of foreign exchange reserves?

A: Short-term government deposits abroad or other means of payment that can be cashed abroad, such as foreign securities, checks, promissory notes, foreign currency drafts of foreign banks, etc. It is mainly used to pay off the balance of payments deficit, intervene in the foreign exchange market and maintain the local currency exchange rate.

19. How do you spell foreign exchange deposits in English?

A: Foreign exchange reserves refer to the foreign exchange part of the international reserve assets held by a government, that is, the creditor's rights held by a government in foreign currency.

20. Are foreign exchange assets held by a country's monetary authorities and can be converted into foreign currency at any time?

A: Narrow foreign exchange reserves refer to a country's foreign exchange accumulation; Broadly speaking, foreign exchange reserves refer to assets denominated in foreign exchange, including cash, gold and foreign securities. It is an important part of a country's international solvency, and it also has an important impact on balancing international payments and stabilizing exchange rates.