Traditional Culture Encyclopedia - Traditional stories - How to speculate on foreign exchange?

How to speculate on foreign exchange?

Speculation of foreign exchange is in fact very simple, but all traders who have had experience in stocks and futures are very easy to get started quickly, the method of speculation in foreign exchange described today is different from the past, which allows traders to easily understand the principles of speculation in foreign exchange. \x0d\ In stocks, we usually observe the trend of a stock to buy and sell, and if we buy at a low level and sell at a high level, we make a profit. In speculation in foreign exchange, the same principle, many people do not understand the sale and purchase of the euro / U.S. dollar is actually what kind of a concept, in fact, is through the fluctuations of the exchange rate of Europe and the United States to buy low and sell high or sell high and sell low. Here we do not have to consider that I buy the euro / dollar in fact is to buy the euro to sell the dollar or buy the dollar to sell the euro this problem, only need to treat the euro / dollar as a stock, the price of the stock is the exchange rate, in this way, we can easily understand the principle of speculation in foreign exchange. \x0d\ Of course speculation in foreign exchange and stock trading is still different, the stock can only buy, and foreign exchange can be sold, that is, shorting, when the exchange rate is about to go down, you can then high shorting, when the exchange rate is really low, you can make a profit. This is often referred to as a two-way operation. \x0d\ Also speculation in foreign exchange is instantaneous trading, which means that one can buy to close positions and sell to close positions frequently within a short period of time. \x0d\ If the speculation of foreign exchange is compared to the speculation of stocks, then the "stock" can be bought, but also wait until the "stock price" rose to a high level of short operations, and at any time to profit, at any time to close the position. \x0d\ The exchange rate fluctuations are in fact very small, such as the euro / dollar exchange rate every day is the decimal point after three to five fluctuations, from 1.3100 up to 1.3200 has been considered fluctuations in the larger, many people think that even if it is invested in the 1000 U.S. dollars, in fact, there is no profit, in fact, not really, because in the speculation in the foreign exchange, the platform also provides a 100 times to 200 times the leverage, this time if there is no change in the capital, then from the time the capital is not changed, it will not be able to be used. At this point, if there is no change in funds, then from 1.3100 to 1.3200, in fact, equivalent to from 103.1 to 103.2, this change is enough to arouse the interest of traders.