Can foreign exchange speculation really make money?

Not necessarily, not everyone who speculates in foreign exchange makes money, because this is a high-risk industry. It is normal to have losses and gains after entering the market, but only a few people make money, and most of them lose money. In addition, if you want to speculate in foreign exchange to make money, you must grasp the pulse of the market and have rich financial knowledge.

Foreign exchange classification

Universal classification

According to the degree of restriction: it is divided into freely convertible foreign exchange, limited freely convertible foreign exchange and bookkeeping foreign exchange.

Freely convertible foreign exchange is the most used foreign exchange in international settlement, which 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.

Limited freely 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.

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.

According to source use: it is divided into trade foreign exchange, non-trade foreign exchange and financial foreign exchange.

Trade foreign exchange, also known as physical trade foreign exchange, refers to foreign exchange derived or used in import and export trade, that is, international payment means formed by international commodity circulation.

Non-trade foreign exchange refers to all foreign exchange except trade foreign exchange, that is, all foreign exchange that is not derived from or used for import and export trade, such as labor foreign exchange, remittance, donation foreign exchange, etc.

Different from trade foreign exchange and non-trade foreign exchange, financial foreign exchange belongs to a kind of financial asset foreign exchange, such as inter-bank trading foreign exchange, which is neither derived from tangible trade nor intangible trade, nor used for tangible trade, but used for the management and manipulation of various currency positions.

According to the market trend: it is divided into hard foreign exchange and soft foreign exchange, or strong currency and weak currency.

China classification

According to control

(1) cash, the four kinds of foreign exchange referred to in China's Provisional Regulations on Foreign Exchange Management are all cash, which can be used as a means of payment for international settlement immediately;

(2) purchase of foreign exchange, that is, the foreign exchange index approved by the state can be used. If you want to change the index into cash, you must use RMB to buy cash from the designated bank within the index limit according to the exchange rate announced by the State Administration of Foreign Exchange. Technically, it's called purchasing foreign exchange. You must use the function of purchasing foreign exchange according to the specified purpose.

one's nature

dollar

dollar

(1) Trade foreign exchange, which comes from import and export payment and auxiliary expenses related to import and export trade, such as foreign exchange used for freight, insurance, sample fees, publicity and promotion fees, etc.;

(2) Non-trade foreign exchange, foreign exchange receipts and payments other than import and export trade, such as remittance, tourism, ports, civil aviation, insurance, banking, foreign contracted projects, etc.

Other classifications

(1) foreign exchange retention, in order to encourage the enthusiasm of enterprises to earn foreign exchange, after the foreign exchange earned by enterprises is sold to the state, a certain proportion of foreign exchange (quota) will be returned to the foreign exchange earning units and their competent departments or places for use according to state regulations;

(2) adjusting foreign exchange, that is, adjusting foreign exchange used by each other through the foreign exchange adjustment center;

(three) free foreign exchange, that is, foreign exchange accumulated by enterprises approved by the state;

(4) Operating foreign exchange that can be offset by income with the approval of the State Administration of Foreign Exchange;

(5) The revolving foreign exchange quota and one-time-use foreign exchange quota refer to the foreign exchange quota that has not been used up within the prescribed time limit and must be turned over at maturity, and the revolving foreign exchange quota can continue to be used after being used once;

⑥ Resident foreign exchange and non-resident foreign exchange, as well as foreign exchange of domestic organs, armed forces, organizations, enterprises and institutions, and China people, foreigners and stateless persons living in China, belong to resident foreign exchange and belong to foreign exchange of diplomatic institutions, consular institutions and commercial institutions in China.