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What is the nature of the foreign exchange market

Want to underst ForexRapidRebate what the cashback forex rebateforexfee rebateforex Forex Rapid Rebate, it must be clear what is foreign exchange foreign exchange is a product of international trade, is the means of payment of international trade settlement Therefore, in essence, it is a currency exchange market It is not a securities market, because the exchange is not securities is the currency itself is driven by the monetary needs of all mankind currency market From the dynamic point of view, foreign exchange Is a countrys currency into another countrys currency, and in international circulation for the settlement of claims and debts arising from international economic transactions Foreign exchange market is a global international speculative market, it is its international transparency, maturity and norms, attracted the worlds banks, large enterprises, funds and investment institutions and the worlds individual investors to participate in a wide range of more than 1.5 trillion dollars a day Market rebateforexbroker volume to become the worlds largest speculative market 24 hours a day continuous trading, T + 0 flow, you can do spot trading, you can also choose to buy long and sell short two-way trading from 10 times - 500 times the various specifications of capital leverage margin trading liquidity, market transparency and international fairness, the foreign exchange market is the most perfect investment market, because of the global participation of all human beings so it is built on The average daily trading volume is 1.5 trillion U.S. dollars, which is about 40 times the total volume of the futures markets around the world, and this volume is not manipulated by the central bank of any country for a long time. Such interventions are transparent Individual investors will also be the first time through the international media in many countries to get this information, these international information is unlikely to be blocked by a particular countrys government In addition, all multinational companies have to balance its income and expenditure in various countries through the foreign exchange market Learn financial friends are well aware that there is a special account of exchange gains and losses to account for foreign exchange rate differences, that is, the Many transactions in the foreign exchange market is sunk, your profits may come from a multinational company to purchase foreign exchange rate losses occurring in accordance with accounting principles, these exchange rate losses are into the cost of business and these costs are ultimately borne by consumers around the world So it seems that the foreign exchange market is a more open market than the stock market A good speculative instruments, must have the following characteristics, first of all, high liquidity, huge Liquidity and trading volume, which can reduce the risk and maximize the prevention of long-term manipulation by a few Secondly, the transparency of market trading rules, the flexibility of trading methods, as well as low transaction costs 2, 24-hour continuous trading foreign exchange market, due to the nature of its market demand is different, so it is different from the stock futures market As a currency exchange can not stop the market, so the worlds multiple Foreign exchange exchange overlap together across 24 hours And 24-hour non-stop trading to meet the global demand for currency exchange, because the planet is always a hemisphere is daytime, to give global currency demanders a fair time to trade, there must be a 24-hour trading mechanism Such a trading system excludes the possibility of dramatic price fluctuations in the opening and closing prices This can make the global currency Demanders benefit Whether it is spot foreign exchange trading, or margin trading, foreign exchange trading market is T+0 flow you can timely response to exchange rate changes, conducive to individual small capital short term arbitrage current foreign exchange trading has two models:   spot foreign exchange trading: domestic called real trading, which is a relatively small risk return is also relatively small foreign exchange trading method domestic major banks have this Trading services, and these domestic banks earn high spreads In fact, it is the same as doing business with domestic banks, and then domestic banks and international markets trading different currencies have different spreads, the spread is roughly 20-30 points on average, the banks have their own spread standards on the demand for capital is relatively large Margin trading: it is similar to the futures contract model, providing a capital leverage, you can use a small amount of money, for large At present, this kind of trading method is not allowed to open in China, therefore, at present, domestic speculators must go to some foreign margin traders to open an account Because of the existence of trading leverage, so in fact, the small capital is magnified dozens to hundreds of times, plus the current international prevailing margin trading method, are free of commissions and fees, therefore, excluding the margin traders charged 3-5 points of spread, traders do not have to pay the commission. The traders do not need to pay more transaction fees in addition to the spread of 3-5 points The trading mode, belonging to the high-risk trading, but its trading rules and commission to place orders more flexible than the cash trading After decades of development and improvement of the international foreign exchange market, margin trading mode has increased a lot of order principles and risk control elements, has reduced the risk of many, limited risk, huge capital leverage, low The transaction costs, is indeed very attractive 

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