How to make a profit in foreign exchange trading

1. Foreign exchange trading is foreign exchange trading, that is, the currency of one country is exchanged with the currency of another country. Different from other financial markets, the foreign exchange market is conducted through the electronic network of banks, enterprises and individuals. Foreign exchange is traded in the form of currency pairs, which is simply to buy one currency in a pair of currency combinations and sell another currency at the same time.

2. Foreign exchange trading can make money by "buying low and selling high" and can be traded in two directions, so it can make money by "buying low and selling high" and "selling high and buying low". "Buy low and sell high" means buying when the price is low and selling when the price rises to get the difference.

For foreign exchange transactions, when you expect one currency to appreciate relative to another, you can buy the former and sell the latter in advance. "Sell high and buy low" means that you expect the euro to depreciate against the dollar, so you can sell the currency pair of the euro against the dollar. If the euro depreciates as you expected, then you can buy the currency pair of the euro against the US dollar at that time and make a profit.

First, foreign exchange trading is a financial transaction to earn the difference according to the daily fluctuation of currency exchange rates in different countries. Foreign exchange margin trading is the main way to speculate in foreign exchange at present, because it is more flexible and unique. Its characteristics are as follows:

1. The investment cost is relatively low.

2. You can buy both down and up. As long as you buy in the right direction, you can make a profit.

It is global and can be traded 24 hours a day.

4. The transaction volume is large, and it is not affected by the banker's factors, which is relatively fair.

5. The risk can be controlled by the operator himself, and the stop loss point and stop loss point can be set in advance;

6. The information is very transparent and there is no inside information;

7. There are few varieties and easy selection.

Second, classification

1. Freely convertible foreign exchange refers to the foreign exchange that is most used in international settlement, can be bought and sold freely in the international financial market, can be used to pay off creditor's rights and debts in international finance, and can be freely converted into currencies of other countries. Such as US dollars, Hong Kong dollars and Canadian dollars.

2. Limited convertible foreign exchange refers to foreign exchange that cannot be freely converted into other currencies or paid to a third country without the approval of the issuing country. According to the regulations of the International Monetary Fund, all currencies with certain restrictions on international current payments and capital transfer are restricted freely convertible currencies. More than half of the national currencies in the world are limited convertible currencies, including RMB.

3. Bookkeeping foreign exchange, also known as clearing foreign exchange or bilateral foreign exchange, refers to foreign exchange deposited in bank accounts designated by both parties and cannot be converted into other currencies or paid to third countries.