What Are the Different Types of Day Trading Platforms?

Foreign exchange transactions are the exchange of currencies of one country with the currencies of another country. Unlike other financial markets, the foreign exchange market has no specific location and no central exchange. Instead, it trades through electronic networks between banks, businesses and individuals. "Forex trading" is the simultaneous purchase of one currency in a pair of currency pairs and the sale of another currency. Foreign exchange is traded in currency pairs, such as Euro / USD (EUR / USD) or USD / JPY (USD / JPY).

Forex trading

(Currency exchange between countries)

1. Fundamental analysis concepts

   The foreign exchange market operates continuously for 24 hours. The ups and downs never stop. The trend is like the day and night transition on the earth, which repeats itself. Corresponding to this, we can divide the trend of the exchange rate market into four stages of building bottom, rising, building head and falling. These patterns can be judged by observing the exchange rate trend chart, such as the commonly used K-line chart.

   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 department has always held a negative and severe crackdown on domestic foreign exchange margin trading.

   At the end of 1993, the People's Bank of China began to allow domestic banks to carry out personal foreign exchange trading businesses. By 1999, with the regulation of the stock market, the profit margin of buying and selling stocks has shrunk sharply, and some investors have begun to enter the foreign exchange market. Domestic foreign exchange firm trading has gradually become an emerging investment method and has entered a rapid development stage. According to CCTV, foreign exchange trading has become the largest investment market other than stocks.

   Compared with the domestic stock market, the foreign exchange market is much more standardized and mature. The daily trading volume of the foreign exchange market is about 1,000 times that of the domestic stock market. Therefore, although the trading rules do not fully comply with international practices, individuals run by domestic banks The firm foreign exchange trading business still attracted more and more participants.

   In general, the vast majority of domestic foreign exchange investors are involved in the actual transactions of domestic banks, while margin trading is not yet open in China and the country s foreign exchange control policies, and domestic investors still need time.