Foreign exchange trading-Hongze(Hong Kong) Investment Consulting Limited

Foreign currency

Foreign exchange transactions, also known as "FOREX" or "FX," are transactions in which one foreign currency is exchanged for another, buying one currency in one currency portfolio and selling another. The exchange rates of various currencies in the international market fluctuate frequently with each other and are traded in pairs of currencies, such as the euro against the dollar (EUR/USD) or the dollar against the yen (USD/JPY). Unlike stocks or futures, there is no center for forex trading, and all forex trading is done over the telephone or electronic network.

What is the foreign exchange market?

The foreign exchange market is by far the world's largest financial market, with an average daily volume of $4 trillion. Foreign exchange markets operate 24 hours a day from 5 p.m. Eastern time on Sunday through 5 p.m. Eastern time on Friday. Trading starts every day in Sydney and as the world turns, business days begin in every financial centre around the world, from Tokyo to London to New York. Unlike other financial markets, foreign exchange traders are ready to react to market fluctuations during the normal opening hours of the foreign exchange market, day or night.

What are the advantages of foreign exchange trading?

Flexible lever：Foreign exchange deals typically offer a leverage ratio of 100 times that of equity dealsHongze(Hong Kong) Investment Consulting Limited (Hong Kong) Investment Management Co., LtdYou can enjoy trading leverage of up to 300:1. For example, in the stock market, investors can buy 2,000 yuan of stocks with 1,000 yuan through margin trading. And by Hongze(Hong Kong) Investment Consulting Limited You can enjoy trading leverage of up to 300:1. For example, in the stock market, investors can buy 2,000 yuan of stocks with 1,000 yuan through margin trading. And by
Two-way trade：In the stock market, investors who want to short face restrictions on taking advantage of the bear market. Such as higher capital requirements, improved quotation rules and complex operating procedures. Foreign exchange shorting, on the other hand, is flexible and unrestricted, with traders free to take advantage of market rallies and declines to make money. Take the euro against the us dollar (EUR/USD) as an example, when the EUR/USD appreciation, you can choose to buy; When EUR/USD depreciates, you may choose to sell.
24Hours of trading：The foreign exchange market is a 24-hour global market where traders can schedule their trading hours according to their lifestyle. This is one of the reasons why many office workers choose foreign exchange investment. At the same time, more and more people are using stock market breaks to trade foreign exchange as an effective way to diversify their investment risk.
High liquidity:Foreign exchange market capital liquidity is high, the implementation of T+0 system, and easy to cash. Whenever and wherever any news occurs, investors can make immediate trading responses and have flexible plans for entry and exit times. The size and volume of other financial markets are dwarfed by the size and volume of foreign exchange markets, such as poor liquidity. For example, in the futures market, many times it is difficult to trade, the price is easy to jump, not easy to grasp. The foreign exchange market is always liquid and can be traded at any time. The real-time quotation system of foreign exchange can guarantee the complete transaction of all market orders, limit orders or stop loss orders.
Low cost without commission：The cost of foreign exchange transactions is usually limited to the difference between buying and selling a pair of currencies.Hongze(Hong Kong) Investment Consulting Limited Gaohui does not receive any commission, and its profit is only derived from the price point. in Hong Kong Morgan Group Co., Ltd The spread cost for high exchange trades can be as low as 1.8 points. Click here to see our spread quotes.

What are the risks of forex trading?

Any over-the-counter foreign exchange transaction carries certain risks, including, but not limited to, leverage, credit reliability, limited legal protection, and market volatility that can significantly affect the price or volume of a currency pair. The magnifying effect of leverage ratio is two-way, on the one hand, it increases the trading quota of investors and doubles the investment income; On the other hand also increased the risk, so that investors may face greater losses. So before deciding to participate in foreign exchange trading, be sure to carefully consider your investment objectives, level of experience and risk tolerance. Don't invest rashly if you can't afford the loss.

How to reduce the risk of foreign exchange trading?

Hongze(Hong Kong) Investment Consulting Limited High exchange provides investors with a variety of effective trading tools:

First, it is important to understand the marketHongze(Hong Kong) Investment Consulting Limited (Hong Kong) Investment Management Co., LtdThe website provides you with a variety of free learning materials, one-to-one customer service, to help you learn foreign exchange trading. Good learning is essential to successful trading. At the same time, you can deposit a small amount of money, starting with small transactions, in-depth understanding of the specific operation of the foreign exchange market.
The website provides you with a variety of free learning materials, one-to-one customer service, to help you learn foreign exchange trading. Good learning is essential to successful trading. At the same time, you can deposit a small amount of money, starting with small transactions, in-depth understanding of the specific operation of the foreign exchange market.
Finally, before entering the market, you must decide how much to invest in each transaction based on what you can afford. To spread risk, don't put all your money into one trade. Generally, the amount of money invested in a transaction should be limited to 10-20% of the total amount. That way, even if you're wrong about the direction of the market, you can still make sure you have enough money to make the next trade, even if you're right about the direction of the market. At the same time, a small investment can help you keep a cool head and not panic when you face a big loss.