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What is foreign exchange investment


Any cashback forexvestment cashback forex calculator Online based on the premise of making money, cashbackforexcalculatorOnline cashbackforexpipcalculator investment is also the same to underst cashbackforexprofitcalculator what aspects of foreign exchange investment to understand? What are the common ways to invest in foreign exchange? What are the three main points of investing in foreign exchange?  The foreign exchange refers to the currency of other countries, and further definition, should refer to the freely convertible currency of other countries, including the United States dollar, euro, yen, pounds and other international currencies Foreign exchange investment refers to our national currency into foreign exchange, and then deposit to earn higher interest, or direct investment to the corresponding country, such as buying stocks, bonds or real estate, or expect the future appreciation of foreign exchange against the national currency to Earn exchange gains From the holding time, foreign exchange investment can be divided into long-term investment and short-term investment, long-term investment is generally held for several years or even decades, such as exchanged into high-interest currency to earn interest on deposits, as well as exchange foreign currency to invest in foreign enterprises, or to buy foreign assets, etc. Short-term investment is generally held for a few months or less, is expected to earn exchange gains through short-term exchange rate changes, of course, this Expect foreign exchange appreciation or depreciation to earn exchange gains also applies to long-term investment, there may be investors long-term bullish on a certain currency, buy and hold for many years We can tell you about several common investment methods: earn high interest some currency deposit interest is very high, such as AUD Australian dollars, the annual interest rate close to 8%, while the annual interest rate of the RMB is only 4%, the interest rate difference of 4%, that we can exchange the RMB into Australian dollars to the bank, so you can earn a lot more interest each year Buy foreign assets such as the United States after a long period of economic downturn began to gradually rebound, and many stock prices are very low, the P/E ratio is very low, but many companies operating conditions are still good, this time you can exchange your hand for the national currency into U.S. dollars, to buy U.S. stocks, expect to get considerable asset income in the future Earn foreign exchange change earnings such as you According to the analysis of the international economic environment, the future appreciation potential of the British pound is very large, then you can consider the national currency into the British pound, waiting for the appreciation of the British pound to earn exchange rate change earnings Investment in foreign exchange three key points point one: master the basics of the reasons that affect the exchange rate trend, very complex, even Warren Buffett, the god of stocks also looked at the wrong dollar trend last year In order to grasp the medium and long-term trend, some of the most driving force of the fundamental elements, we must first understand: the impact of the spread of the exchange rate, very complex, even the god of stocks Warren Buffett last year, the dollar trend. We must first understand: The impact of interest rate differentials This is the theme of the foreign exchange market in 2005 If the level of interest rates in one country is relatively higher than others, it will stimulate the inflow of foreign funds, thereby improving the capital account and raising the exchange rate of the countrys currency Europe, Japan and other economies are not as strong as the U.S. economic development, global funds are flocking to the U.S. medium- and long-term Treasury bonds, the result of foreign capital to the U.S. dollar a steady stream of buying, continued to support the Inflation rate and trade balance originally theorized that the difference between domestic and foreign inflation is the dominant factor in determining the long-term trend of the exchange rate, based on what is called purchasing power parity (PPP), but in fact, historical data show that there is no direct negative correlation between the exchange rates of the two countries and their inflation rates, but rather the central banks determinants are stronger. 0.5%, but the Fed is concerned about the adverse effects of inflation and continued to raise interest rates, resulting in the dollar spread advantage continues to emerge, also indicates that interest rates are the most powerful driving force of the current currency market balance of payments, the trade deficit in the previous year to become the dollars nightmare market generally believed that the U.S. current account of the huge deficit is difficult to make up, it is necessary to devalue the dollar to ease, so there was a huge amount of dollar dumping but now the U.S. Capital inflow data can offset the trade account deficit, the influence of the U.S. balance of payments problems thus weakened Economic data and central bank action, the two factors dominate short-term market behavior Economic data is very complicated, short-term can influence the market and central bank intervention, mainly because the central bank as a powerful financial force, in the short term to buy or sell a large number of currencies on the impact of the market Key point two: understanding technical analysis After the initial understanding of some fundamental elements, the idea that it is safer to rely on fundamental judgments to enter the market, there are also risks often sometimes news in the rumor has influenced the market, after the confirmation is back to the starting point for investors with relatively less easy access to information, to profit from the old news, obviously quite difficult and technical analysis is quite subjective, but it contains the reflection of the market on various influencing factors, especially the psychological expectations of the whole market. Especially the psychological expectations of the entire market, which is not available from the fundamentals Classic technical analysis are Dow Theory, trend lines, candlesticks and other analysis Of course, there is no one method can be a hundred percent, and for the same method, different investors can have different interpretations, the key is to develop their own view of the market pattern For foreign exchange investment just starting friends, you can see the trend as your good friend of all kinds The trend chart will often add some averages, you can roughly grasp the direction of the trend is more rational way of entry Point three: familiar with the trading platform function to the construction bank, for example, at present its personal foreign exchange trading system is very perfect and stable, channels including telephone banking, online banking and counter transactions, etc. Its not only can provide 24-hour non-stop foreign exchange transactions, there are a variety of entrusted way for customers to choose As long as the right combination, not only to complete the transaction to achieve revenue, but also to enjoy a smaller spread, and save transaction costs Personal foreign exchange trading trading method is divided into instant trading and commissioned trading instant trading is the CCB in the international market price based on a certain spread to the customer offer way, the customer accepts the offer is a transaction deal bank spread is equivalent to the bank charges a commission Commission trading method and Divided into two types: profit commission and stop-loss commission, and through the combination of profit commission and stop-loss commission constitute a two-way commission Profit commission refers to the customer target transaction price better than the market price, for example, the EUR / USD market rate of 1.2067, the customer wants to sell the euro commission at the price level of 1.2167, is the profit commission

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