Forex Trading Skills: How to Buy and Sell Foreign Currency?

　　Foreign exchange margin trading,which has become popular in Taiwan's investment circles,still has many people who think that this is a very esoteric field,and that it requires profound knowledge,advanced technology,and professional skills.Lack of investment confidence,but in fact,not entirely.In this article,Huyijun will use an easy-to-understand explanation to let you know what foreign exchange is?How to buy and sell foreign exchange.

　　Foreign exchange is closely related to our daily life and is not out of reach.For example,if you want to travel from Taiwan to Australia,you need to go to the bank counter to convert New Taiwan dollars into Australian dollars before going abroad,so that you can live and consume in Australia and all other matters.Simply put,in addition to the national currency,the currencies of other countries are collectively called"foreign exchange".

　　Therefore,foreign exchange trading is on your side,which is actually closely related to everyone's life.

　　Forex trading is the exchange of currency

　　Hu Yijun will give you a few more examples,such as:

　　Xiaoqiang,who lives next door,bought a bag of California oranges at an import supermarket(Xiaoqiang must have bought the oranges in NT dollars,but the supermarket uses US dollars to import these oranges from a wholesaler in California,the United States,so this transaction involves foreign exchange.).

　　Or the neighbor sister bought a set of skin care products on Haitao or a trustee,or the little prince at home just returned from a trip to Japan...

　　In fact,all of this has something to do with foreign exchange,so what does it have to do with it?

　　Think about it carefully,if you just returned from a trip to the United States and wrapped a$100 red envelope for your 7-year-old nephew,but the little guy might have thrown it away after opening it,why??

　　Because he knows that 100 yuan can't buy his favorite snacks,and only after changing the 100 dollars into NT dollars,which are commonly used in our area,can he eat spicy food.

　　Therefore,the simple understanding of"foreign exchange"is the exchange of currency-the currency of country A is converted into the currency of country B according to a certain ratio,it is as simple as that.

　　Foreign exchange promotes economic prosperity

　　It is because of the existence of foreign exchange that we can use our own money to buy commodities anywhere in the world;it is because of the existence of foreign exchange that the national economy and trade can develop so prosperously.Think as far back as the ancient Spring and Autumn Period and the Warring States Period,why were people so poor?Because if you want to buy or sell,you can only exchange things for things,resulting in trade not as developed as it is now,but it was different in the prosperous Tang Dynasty.At that time,we not only had currency in circulation,but also had many import and export transactions with neighboring countries.Thus promoting economic prosperity and creating a prosperous age.

　　The above briefly understands the principle of foreign exchange,so why has foreign exchange become an investment product that everyone can make money?

　　The first is exchange rate movements,allowing the foreign exchange market to create favorable money-making opportunities.

　　If you are a little concerned about the New Taiwan dollar,you should know that one US dollar can be exchanged for 40 yuan in the past,but now it can only be exchanged for 30 yuan.

　　Seeing this,will you ask two questions?

　　1.Why can't the U.S.dollar be worth so much New Taiwan dollars now?

　　2.What does this case have to do with making money?

　　The first question,Huyijun will answer you later,remember to always pay attention to the latest update of Huyijun

　　The second question,let's look at a little story:

　　Ten years ago,Juliet,a foreign friend,exchanged US$100 for about NT$3,500;

　　Ten years later,Juliet took out NT$2,700 in exchange for about$100.

　　Now,Juliet has$100+800 RMB in his hand.

　　So,it is equivalent to Juliet doing nothing and earning 800 RMB for no reason.Isn't it great?In fact,a long time ago,someone discovered this feature,so these people have become rich.Since then,more and more people have joined the foreign exchange industry,thus forming the current foreign exchange market with a daily trading volume of about$6 trillion.

　　Participants in the foreign exchange market

　　In a market with such a large trading volume,who are trading?What is their purpose?

　　Participants in the foreign exchange market mainly include governments,central banks,commercial banks,non-bank financial institutions,brokerage companies,self-employed traders and large multinational enterprises.

　　At present,there are more than 30 major foreign exCM Trade in the world,which are located in different countries and regions on all continents of the world.According to the traditional geographical division,it can be divided into three major parts:Asia,Europe,and North America.

　　Among them,the most important ones are London,Frankfurt,Zurich and Paris in Europe,New York and Los Angeles in America,Sydney in Australia,Tokyo,Singapore and Hong Kong in Asia.

　　The purpose of these institutions and personnel participating in foreign exchange transactions is also very different.The central bank participates in the foreign exchange market mainly for the national economy,such as China's three trillion US dollars in foreign exchange reserves,while individuals are for investment and making money.People from all over the world Everyone is trading in this market,so that this market is difficult to manipulate.As long as you study the fundamentals and technical aspects carefully,everyone can get their own share of this market.

　　The above is the basic knowledge of foreign exchange that Huyijun shared with you today,lock the Huyi market network,and the editor will unlock more teaching books about foreign exchange investment for you.