Forex basic knowledge question and answer collection
In the front, we have received a lot of questions from foreign speculators about foreign exchange knowledge, perhaps the most basic, but it is not easy for them to remember. Today, the author gathered these questions together and answered them one by one, hoping to help new friends to learn more about the knowledge points of the foreign exchange market, so that they can slowly become proficient in this field, and from this Earn profits in the field. The foreign exchange basic knowledge question and answer collection, the detailed introduction is as follows.
Question 1: How is the currency exchange rate determined?
Economic and political factors often affect the exchange rate of currencies, such as inflation, interest rates, political stability, and other relevant economic indicators. Governments sometimes also in foreign exchange. Intervene in the exchange rate. If a large number of buy/sell orders also have an impact on the exchange rate changes. However, due to the huge volume of foreign exchange trading, the exchange rate of a currency is not controlled by a single speculator.
Question 2: What is foreign exchange
The world's lowest price financial exchange is the foreign exchange market, with an average daily trading volume of about 1.5 trillion US dollars. Forex trading means buying one currency at the same time and selling one currency. The currencies in the world are floating exchange rates and are expressed in a group of currencies, such as: Euro/US Dollar, US Dollar/Day.
Question 3: Do you need a lot of money to engage in foreign exchange trading?
The answer is of course no. The general foreign exchange economists open an account with a range of USD200-50,000. Economists usually give customers the right to use leverage multiples. Universal magnifications range from 20 times to 200 times. For example, 40 times, you only need $2,500 in your account to trade $100,000. However, you must be very careful that in addition to amplifying your trading volume, leverage multipliers can also cause you considerable losses, and you must pay considerable attention to the risks you can afford.
Question 4: Where is the trading center of the foreign exchange market?
Forex trading is different from stocks and futures trading. It has no fixed trading center, so the foreign exchange field is also called the store head office or the interbank trading house. Forex trading is done by phone or by the Internet.
Question 5: What is the opening time of the foreign exchange field?
The foreign exchange field is a real 24-hour trading market, which starts every day after the movement, London and New York. Of course, unlike other trading markets, investors in foreign exchange markets can adapt to exchange rate changes caused by economic, social and political events at any time.
Question 6: Which trading strategy to use
The change in currency exchange rate depends on the fundamental and technical aspects. Technical analysis tools, trend lines, support and resistance price levels, mathematical analysis, etc. The fundamental analysis is economic news, global news, government policies, reports and rumors. However, violent market conditions usually occur when some unforeseen circumstances occur, so no matter what trading strategy is used, the setting of stop loss is needed.
Of course, there are not only the above six questions, but the author only picks six questions that new entrants often ask. These are the basic questions and answers about foreign exchange basic knowledge. To learn more, please pay attention to the Forex Knowledge section. Investors who want to achieve the ultimate profitability goal in this field need to adapt to this field and learn relevant knowledge and form their own trading style. If you want to know about the securities analysis system, you can try it online or the free version below!