Foreign exchange investment knowledge understanding


forextradingwebsiteonline forex trading site investment, refers to investors in order to obtain investment income forextradingbrokerwebsite the exchange of different currencies between the behavior of foreign exchange cashback forex the international exchange of short, there are dynamic and static two kinds of meaning dynamic meaning refers to a countrys currency into another countrys currency, to settle the international debt relationship between a special business activities static meaning is used for international settlement of foreign currency and foreign currency assets usually called foreign exchange this term is on its static meaning. The term foreign exchange is usually referred to in terms of its static meaning The foreign exchange market is the foreign exchange investors to conduct foreign exchange transactions in the current global foreign exchange exchanges are mainly New Zealand, Sydney, Tokyo, Hong Kong, Singapore, Frankfurt, London, New York, the United States West Coast foreign exchange market because of the time difference around the world, the start and closing time is not the same, and finally constitute the 24 hours non-stop trading speculation how to make money experts free guidance bank gold and silver TD opening guide bank gold and silver simulation trading software set gold number desktop line price tools margin foreign exchange is the principle of leverage, with a fixed amount of margin to buy a fixed large contract in the foreign exchange market inside the transaction so relatively speaking, in the foreign exchange market, as long as you pay a small amount of margin to get high In order to grasp the medium and long-term trends, some of the most driving fundamentals, we must first understand: 1. Inflation rate and trade balance The original theory is that the difference between domestic and foreign inflation is the dominant factor in determining the long-term trend of the exchange rate, based on a judgment called purchasing power parity (PPP) But in fact, historical data show that there is no direct negative correlation between the exchange rates of the two countries and their inflation rates, but rather the central banks The current U.S. inflation rate of 3.6%, higher than the EUs 2.3% and Japans 0.5%, but the Federal Reserve is concerned about the adverse effects of inflation and continued to raise interest rates, resulting in the dollar carry advantage continues to emerge, also indicates that interest rates are the most powerful driving force of the current currency market balance of payments, the trade deficit in the previous year has become a nightmare for the dollar market is widely believed that the U.S. current account of the huge deficit is difficult to 3. Economic data and central bank actions are two factors that dominate short-term market behavior Economic data is very complicated and can influence the market in the short term, while central bank intervention, mainly because the central bank as a powerful capital The impact of central bank intervention on the market is mainly due to the fact that central banks, as a powerful financial force, buy or sell large amounts of a currency in the short term