Traditional Culture Encyclopedia - Traditional stories - What kind of investment is foreign exchange?
What kind of investment is foreign exchange?
Foreign exchange is bought and sold on the basis of exchange rate fluctuations between currencies of various countries, from which the difference is earned. This investment and financial management method, which can only be traded in banks, is now favored by many investors, but it is limited by the incomplete opening of the law. It can only be used as an excellent platform with well-known international market and high supervision to meet domestic demand.
Foreign exchange investment is similar to stocks, but the interest and risk are higher.
Broadly speaking, foreign exchange investment and financial management is one of the ways of investment and financial management. Simply put, foreign exchange investment is the exchange of one country's currency for another, which is called foreign exchange. That is, the relationship between countries caused by economic exchanges such as trade, investment and tourism. The foreign exchange market is the largest financial market in the world. There are transactions in the foreign exchange market almost all day, and the transaction volume is huge, which is estimated to be around one trillion dollars every day. This scale is larger than the total transaction volume of all stock markets in the world.
The foreign exchange market is not concentrated and belongs to over-the-counter transactions. Buyers and sellers contact each other through real-time communication tools such as telephone, computer and fax machine.
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