Why do investors choose to do foreign exchange?

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Many people are speculating in stocks, buying securities and so on. Foreign exchange investment, as a new investment variety that has recently entered thousands of households, has been accepted and recognized by the general public in Shanghai, Shenzhen, Beijing and other central and frontier cities, and has gradually entered large and medium-sized cities in the inland, and is well known by residents. and favored. It has become another hot investment topic after stocks and real estate. Why foreign exchange speculation is so popular, summed up the following reasons. The following editor will take you to analyze the advantages of foreign exchange:

First: Stocks and securities require a 100% deposit. The foreign exchange is generally 1%-10% margin, which controls the risk!

Second: Stocks and securities implement "T+1" trading, and positions cannot be closed on the same day. And foreign exchange implements "T+0" trading, which can close positions on the same day, buy and sell at any time, and can conduct multiple transactions. Reduced overnight risk.

Third: Stocks and securities are opened from Monday to Friday, while foreign exchange is traded 24 hours a day, and trading can be carried out at any time. (The market will be closed on major holidays and weekends) This provides a good opportunity for part-time investment and financial management people, who do not need to choose between work and stocks?

Fourth: Stocks and securities are invested in the Mo company, which is easily controlled by people with large funds, while the target of foreign exchange investment is the national economy, not the performance of listed companies. Therefore, foreign exchange is not easy to be a banker.

Fifth: Stocks and securities are single transactions that can only be bought first and then sold, making money in a bull market. Foreign exchange is a two-way transaction. You can buy first and then sell, or sell first and then buy. Both bulls and bears can make profits.

Sixth: The trading volume of stocks and securities is small. The volume of foreign exchange transactions is huge, and there is no difference between market makers and retail investors. (The daily turnover is 1.98 trillion US dollars) The foreign exchange market is the largest financial market in the world.

Seventh: Stocks and securities pay dividends several times a year, while foreign exchange can enjoy interest every day.

Eighth: Stocks, there are too many types of securities, it is troublesome to choose, the foreign exchange market is easier to grasp than the stock market, and there are few foreign exchange types, currently only about 10 or so.

I won’t mention some other advantages, so foreign exchange is a good choice if you want to invest in financial management!

We investors who first entered the foreign exchange market and started foreign exchange trading are of course motivated by making money. From the perspective of speculation in the foreign exchange market: foreign exchange investment is a way to get rich quickly. It is a way to get a huge investment with only a small amount of initial capital. tool. However, risks and opportunities exist in foreign exchange trading, and high capital returns are based on relatively high risks. So, why should we participate in foreign exchange trading? Anyone must find a satisfactory answer to this question before becoming a foreign exchange trader. Here are meaningful answers:

<1>The transaction cost is low, and the market entry threshold is low.

<2> The transaction time is long, 24 hours a day.

<3> Two-way trading, you can go long or short, so there is no bear market or bull market.

<4> T+0 trading method, buy on the same day and sell on the same day.

<5> The risk is easy to control, and the limit price stop loss order can be set at any time.

Features of foreign exchange margin trading:

<1> You can go long and short, and you can make money when you go up or down.

<2> The transaction amount is huge, and no one can control the price. A fully participating market satisfies the conditions of Gann's theory.

<3> Highly technical and highly volatile.

<4> The trading time is very suitable for Chinese office workers to trade, most of the market takes place between 18:00-23:00.

<5> The degree of information disclosure is the highest. Whether you are an individual, an institution, or a foreign hedge fund, you are all on the same starting line, and you are all competing in the same market, which is fair and open.

<7> Low investment, only 100 US dollars.

<8> There is a market every day.

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Last updated: 09/15/2023 20:19

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