These days, more and more people are investing their money in various financial products rather than simply putting it in the bank.
Among them, the public attention, so what is financial management, what are the ways?
Foreign exchange finance management refers to the use of various financial instruments and their combinations, especially various derivative financial instruments and their combinations, to achieve the purpose of maintaining and increasing the value of customers’ foreign exchange cash or future cash income within the range of risks that customers can bear.
Foreign exchange finance is generally divided into three categories: spot and trading.
At the same time, bank foreign exchange business refers to the use of own conversion or other high-yield financial management methods, and use changes to earn the difference between the two.
A deal is a deal.
It uses the principle of leverage to make more profits with less money, also through exchange rate fluctuations.
Foreign exchange futures is a kind of foreign exchange financing method provided by banks.
Investors first buy a contract and then deliver it at maturity to earn the difference.
At present, China has the following kinds of feasible foreign exchange investment methods: 1.
For a long time, the main way of domestic residents’ foreign exchange investment is foreign exchange savings.
(2).
Foreign Exchange Treasure is a bank to provide customers with foreign exchange financial tools business.
(3).
An option represents a right to choose, which can be bought and sold. The buyer of the option obtains this right, while the seller of the option assumes the corresponding responsibility.
Currency trading has been hot in recent years.
More and more people are beginning to join the foreign exchange speculation army, and many novices are also testing the waters.
The first step for a novice is to master the principles and characteristics of foreign exchange trading.
What is the principle of foreign exchange trading?
Foreign exchange margin trading is a way of leveraged investment between financial institutions and between financial institutions and investors.
At the time of trading, the trader only needs to pay a margin of 1%-10% (margin, the same below) to make 100% of the trade.
Each small investor can also buy and sell foreign exchange in the financial market to earn a profit.
What are the characteristics of foreign exchange trading?
This method of forex trading was born in London in the 1980s and then flowed into Hong Kong.
In addition to the margin system, such as futures trading, foreign exchange margin trading also has different characteristics from futures trading.
1. Foreign exchange margin trading is intangible and not fixed.
It is directly between the customer and the bank, with no intermediary;
2. Forex margin trading has no expiration date.
Traders can hold positions indefinitely;
3. The foreign exchange margin trading market has a huge scale and a large number of participants;
4. There are various currencies for foreign exchange margin trading, and all convertible currencies can be used as trading varieties;
5. The trading time of foreign exchange margin trading is 24 hours a day;
6. In foreign exchange margin transactions, the difference between currencies shall be calculated and the financial institution shall pay or deduct from the customer’s margin.
