What Are the Different Types of Forex Trading Classes?

FOREX (foreign exchange trading) market-an interbank market, established in 1971, when international trade shifted from a fixed exchange rate to a floating exchange rate. From then on, the exchange rate of one currency relative to another is usually expressed in an explicit waya mutually agreed exchange relationship.

Foreign exchange market

FOREX market

In addition, compared to futures and securities markets,

The liquidity foreign exchange market absorbs far more funds every day than any other market. High liquidity is the strongest attraction for investors, it allows investors to freely quote current market prices

1944--

The Smithsonian Agreement replaced in December 1971

During the blind development of the futures market from 1992 to 1993, many Hong Kong foreign exchange brokers went to the mainland to conduct foreign exchange futures trading business without approval, and attracted a large number of domestic enterprises and individuals to participate.

As most domestic participants do not understand the foreign exchange market and foreign exchange transactions, blind participation has led to large areas and large losses, including a large number of state-owned enterprises.

In August 1994, the China Securities Regulatory Commission and other four ministries and commissions jointly issued a document to comprehensively ban foreign exchange futures trading (margin). Since then, the management

Many friends are familiar with the stock exchange market, and talk about it with relish. For most people, the foreign exchange trading market is still a completely new field. If some customary knowledge in the stock market is copied to the foreign exchange market, it will cause unnecessary trouble and confusion.

Different space

From the characteristics of the foreign exchange market, it can be seen that the foreign exchange market is a global market, and the stock market is a regional market; the foreign exchange market is intangible and the stock market is tangible. Some friends often ask: What market price is this offer? This is affected by the stock market. Since the foreign exchange market is a global open market, there is no problem with that market. The price we see is the latest quote in this market. Although this time may be the more active Tokyo market, there may also be New York. , London, Hong Kong and other regions are trading, so it is difficult to determine which market the quote came from, and it is not necessary to know.

Different standards

In the stock exchange market, different regional markets will have different market rules and their own characteristics, but in the same market, everyone follows a uniform standard. In the foreign exchange trading market, due to its globalization characteristics, the market has a high degree of tolerance and freedom. It is sufficient for everyone to trade together and follow the principles of fairness, willingness, and integrity. There are no special requirements and rules.

Different deals

Normative

Article 1: Resolute execution of stop loss

Think about it, stop loss and re-entry loss are actually the same thing.

Stop loss is a ticket to enter the market, but refused to stop is a pass to the market.

If you can't do this, then you are advised not to come to the foreign exchange market.

Article 2: Must be operated in accordance with strict trading rules

In the foreign exchange market, no personal thinking is allowed in the meantime. The foreign exchange market is changing rapidly. There may be thousands of thoughts, but in a certain time, there can only be one correct result.

Article 3: No thoughts, no judgments, no emotions are allowed

Regardless of whether your thinking and judgment are correct or wrong, it is also relatively a disaster, but different people are hurt differently. The reason is simple, because you are never fighting against the market, but the same bookmaker hiding in the dark.

Article 4: Grasp the big direction and never go against the market

As long as the general direction has not changed, this iron rule will never be violated.

Article 5: Trading orders can be issued at most once a day, regardless of whether the results are correct or incorrect

After entering the market, set the exit point and automatic trailing stop point, then stay away from the computer, and never return to the operating platform for a half step.

Because your operation plan already includes all possible results. If wrong, the result of re-entry can only be worse. Don't trust any information and data from the market!

Article 6: Judgment of Direction and Selection of Entry Points, Exit Points, Stop Loss Points

1. Judge the direction.

2. Select an entry point.

3 Stop loss.

4 Select a selling point.

Article 7: Strict Fund Management

Regardless of profit or loss, the admission funds must always remain below 15% of the operating account.

Keeping the rules of admission funds in place and implementing them will keep you away from temptations when you make a profit, and you won't get lost in gambling when you lose.

If you can't do this, then stay at home honestly, instead of being controlled by greed and losing in the foreign exchange market, you might as well retreat. ^[1]