Foreign exchange

What is foreign exchange?

Is short for international exchange. In the process of currency payment, one party is in Beijing and the other party is in Shanghai. This kind of payment is called internal remittance. With one party in Beijing and the other in New York, such payments transcend national boundaries and are called international exchange. Foreign exchange is expressed in foreign currency and is used for international settlement of credit and payment documents. Foreign exchange includes bank deposits, bank checks, commercial bills of exchange, foreign government bonds and their long - and short-term securities, foreign banknotes, etc.

Why trade forex?

The foreign exchange market is the world's most traded market and is available 24 hours a day:

• Continuous trading opportunities because the value of currencies always goes up and down
• Low point difference, reflect real-time circulation conditions click to view the currency to point difference real-time quotation table

Market perspective

It is open 24 hours a day from 10pm GMT on Sunday to 10pm on Friday. Each day begins in Sydney, and then the Tokyo, London and New York markets rotate.

Daily trading volume in the global forex market is derived from two components:

• Foreign trade (5%). When a company buys or sells goods in a country other than its own and converts the profits back into its own currency.
• Speculative trading for profit (95%).
• Currency pair: major currency pair, non-major currency pair and cross currency pair (cross disc)

Currency pairs are divided into three categories:

• Major currency pair: The currency pair that trades the most and circulates the most rapidly, such as the euro dollar (EURUSD).
• Lightly traded currency pairs: Commodity currencies, such as the Australian dollar (AUDUSD) and Nordic currencies.
• Cross currency pair: A currency pair in which neither currency contains the US dollar.