What is Private firm Foreign Exchange trading Private firm foreign exchange trading is when an individual investor commissions a bank to exchange one freely convertible foreign currency for another freely convertible foreign currency.
Through the conversion between different currencies, investors can not only bear the exchange rate risk, but also obtain the returns brought by the exchange rate fluctuations.
¡ñ Investors can only use real funds to invest, not to enlarge the amount of trading;
¡ñ Investors can only sell the currency they hold.
¡ñT+0 trading, which can be traded multiple times a day;
¡ñ24 hours of continuous trading, not subject to time restrictions;
¡ñ A single transaction starts at just $50.
The client only needs to open a foreign currency account in the bank and sign the Risk Disclosure Letter, the Terms of Solid Foreign Exchange Trading and other documents to open the personal solid foreign exchange trading function.
¡ñ Over the counter trading, investors in the bank designated the counter to fill in a written entrustment to trade;
¡ñ Telephone trading, investors by dialing the bank customer service number and follow the voice prompts to trade;
¡ñ Online banking, where investors log on to the bank’s website and conduct transactions online;
¡ñ Mobile banking, where investors make transactions through mobile banking services provided by their bank.
What is individual virtual foreign exchange trading Virtual foreign exchange trading, also known as foreign exchange margin trading, deposit trading.
It means that investors and financial companies (banks, dealers or brokers) specializing in foreign exchange trading sign a contract to buy and sell foreign exchange, pay a certain ratio (generally not more than 10%) of the transaction margin, and can buy and sell foreign exchange of 100,000, hundreds of thousands or even millions of dollars at a certain financing multiple.
Compared with the real foreign exchange trading, the characteristics of foreign exchange margin trading ¡ñ transaction amount several times, increase the return and risk of the corresponding increase at present, the Bank of China Shanghai Branch of foreign exchange margin trading can be expanded 10 times, some foreign financial institutions can be expanded 100 times or even higher margin trading;
Take margin trading magnified 10 times as an example, exchange rate fluctuation of 1% May bring 10% of the principal gain or loss;
¡ñ Two-way operation margin trading can buy and sell, not restricted by the capital currency, that is to say, the bull market, the bear market also have the opportunity to make money, the operation is more flexible;
¡ñ More suitable for the short-term operation only a few banks in our country are approved to start or run foreign exchange margin trading business. But with the gradual relaxation of the policy and the increasingly mature investor, the foreign exchange margin trading will become the mainstream of the foreign exchange market like foreign countries.
