What are the characteristics of the foreign exchange trading market
read:2023/2/26 14:55:31
In recent years, the cashback forex forextradingaccountstype forex trading accounts for more forextradingaccountsregister more people, become the new darling of international investors, which is closely related to the characteristics of the foreign exchange market itself The main characteristics of the foreign exchange market are: (1) there is a market without a field The financial industry in Western industrial countries basically have two systems, namely, centralized trading of centralized operations and no unified fixed place of business network stock trading is Through the exchange of trading like the New York Stock Exchange, London Stock Exchange, Tokyo Stock Exchange, respectively, the United States, the United Kingdom, Japan, the main trading venues for stocks, centralized trading of financial commodities, its quotation, trading hours and settlement procedures are unified, and the establishment of the Association of the same industry, the development of the code of practice investors are through the brokerage company to buy and sell the required commodities, which is the market and foreign exchange Buying and selling is through the unified operation of the market of the business network, it is not like the stock exchange has a centralized and unified location, but the network of foreign exchange trading is global, and the formation of unorganized organization, the market is agreed by everyone and advanced information systems are linked, traders also do not have any organization membership, but must obtain the trust and recognition of the same industry this no unified site The foreign exchange market is called the market without the field global foreign exchange market every day an average of trillions of dollars of transactions so huge huge amount of money, is in this neither centralized place and no central clearing system control, as well as no government supervision to complete the clearing and transfer (2) circular operation Because of the different geographical location of the global financial centers, the Asian market, the European market, the American market because of the time difference Together into a 24-hour continuous operation of the global foreign exchange market at 8:30 a.m. (to New York time) New York market open, 9:30 a.m. Chicago market open, 10:30 a.m. San Francisco open, 18:30 a.m. Sydney open, 19:30 a.m. Tokyo open, 20:30 a.m. Hong Kong, Singapore open, 2:30 a.m. Frankfurt open, 3:30 a.m. London market open so 24-hour non-stop operation, the foreign exchange market has become a non-stop operation. The foreign exchange market has become a day and night market, only Saturday, Sunday and major holidays in various countries, the foreign exchange market will close this continuous operation, providing investors with no time and space barriers to the ideal investment place, investors can look for the best time to trade for example, investors who buy the yen in the morning on the New York market, the yen rose in the evening after the opening of the Hong Kong market, investors in Hong Kong market to sell, no matter where the investor himself, he can participate in any market, any time of buying and selling Therefore, the foreign exchange market can be said to be a market without time and space barriers (3) zero-sum game In the stock market, a certain stock or the entire stock market rise or fall, then the value of a certain stock or the entire stock market stock value will also rise or fall, for example, Japans Nippon Steel However, in the foreign exchange market, the fluctuation of the exchange rate indicates the change of the value and the change of the value of the stock is not the same at all, because the exchange rate is the exchange ratio of two currencies, and the change of the exchange rate is the decrease of the value of one currency and the increase of the value of another currency. For example, 22 years ago, 1 U.S. dollar for 360 yen, at present, 1 U.S. dollar for 120 temporary yuan, which means that the value of the yen rose, while the value of the dollar fell, in terms of the total value, change to change, will not increase the value, nor reduce the value of Therefore, some people describe foreign exchange transactions is a zero-sum game, more precisely the transfer of wealth in recent years, the foreign exchange market into more and more funds, the exchange rate volatility is increasing. The scale of the transfer of wealth is also increasing, the speed is also increasing, to the global foreign exchange daily 1.5 trillion U.S. dollars in transactions to calculate, up or down 1%, that is 150 billion of funds to be replaced by a new owner despite the great changes in foreign exchange rates, but any kind of currency will not become waste paper, even if a currency continues to fall, however, it will always represent a certain value, unless the announcement of the abolition of that kind of Currency