What is the difference between foreign exchange trading and foreign exchange and gold margin trading

In fact, foreign exchange trading includes margin trading, and margin trading is a way of foreign exchange trading. The so-called foreign exchange margin trading refers to the signing of a contract with a (designated investment) bank, opening a trust investment account, depositing a sum of funds (margin) as a guarantee, and setting a credit operation limit (i.e., 20-500 times the leverage effect) by the (investment) bank (or brokerage bank). Investors can freely trade spot foreign exchange of the same value within the quota, and the profit or loss caused by the operation will be automatically deducted or deposited from the above-mentioned investment account.

It allows small investors to use smaller funds, obtain larger trading amounts, and enjoy the same use of foreign exchange transactions as a risk avoidance and create profit opportunities in exchange rate fluctuations like global capital.

Many electronic traders in Europe, the United States and Hong Kong have provided foreign exchange and margin trading, 2 products in a trading software, 24 hours a day** trading, the lowest can buy a mini order. Two-way operation of buying up and buying down, you can also open a demo account for free and try out investment for free.

Margin trading is a kind of large trading volume, high transparency, flexible leverage, light transaction costs, two-way T+0 trading, 24-hour market, controllable risk, rapid trading of an investment and trading method, and foreign exchange trading is not available, but margin trading is not currently relevant in China, that is to say, the domestic margin trading is illegal, so to do margin trading, you can only choose a formal regulated platform abroad.

**Can only be traded in a specific period of time during the day, generally from 9:30 in the morning to 6 o'clock in the afternoon, foreign exchange margin is available 24 hours a day every Friday, **There are thousands of kinds**It is very difficult to choose, but the types of foreign exchange margin will be relatively small, **The trading volume is much smaller than the amount of foreign exchange margin, **In the bear market, there is no way to work for those who have no capital, only**, However, there is no restriction on foreign exchange margin.

**Can only be traded during a specific period of the day, and foreign exchange margin trading is available 24 hours a day, five days a week, there are hundreds of ** foreign exchange market, currency combinations are very limited, **Another disadvantage is that in the bear market, investors can not work, can only **foreign exchange market, whether the economy is developing or declining and retreating, investors can make profits.

**Transactions can only be carried out within a specific period of time, foreign exchange margin is 5 days per sensitive week, 24 hours a day can be handed over lead Zhiyi, the time is not the same.

Different from forward foreign exchange transactions, the differences are mainly manifested in the following aspects: traders are different foreign exchange ** transactions, as long as the margin is paid according to the regulations, any investor can engage in transactions through foreign exchange ** brokers, the restrictions on the client are not as good as forward foreign exchange transactions, because in forward foreign exchange transactions, most of the participants are professional ** traders or large manufacturers with good business relations with banks, and it is extremely difficult for individual investors and small and medium-sized enterprises to have the opportunity to participate in forward foreign exchange transactions without obtaining credit lines from banks. Transaction Margin Both parties to the foreign exchange transaction must pay margin, and through the ** exchange daily clearing, daily calculation of profit and loss, and make up or return the excess margin.

Whether or not to pay margin for forward foreign exchange transactions depends on the relationship between the bank and the customer, and usually does not need to pay margin, and the profit and loss of forward foreign exchange transactions will not be settled until the expiration date of the contract. Trading Methods Different Forex trading is carried out in the form of open outcry on the exchange. The two parties to the transaction do not contact each other, but each of them settles as an intermediary with the clearing house, and bears the credit risk.

**Contracts are subject to restrictions on trading currency, delivery period, trading unit and price change. Currencies are limited to a few major currencies. Forward foreign exchange transactions are over-the-counter transactions, and the transaction is carried out by the buyer and the seller as counterparties by ** or fax, and there is no currency limit, and the transaction amount and maturity date are determined by the buyer and the seller.

This increases the risk of default of the other party in the economic downturn, and there are no special restrictions on the time, place, price and disclosure of the transaction. Overall Transaction In foreign exchange** trading, foreign exchange is usually bought and sold at the expense of the national currency, such as only in the US dollar** in the US market, therefore, other currencies other than the US dollar, such as the hedging between the mark and the yen, can only be used as the US dollar as a proxy to buy and sell the Japanese yen or the mark, thus constituting a two-transaction transaction. In forward forex trading, different currencies can be traded directly with each other.

Spot settlement and difference settlement foreign exchange ** transaction due to the clearing house as the transaction intermediary, the amount, the term are specified, so the spot delivery is not implemented, for the unsettled amount, calculated day by day, and settled by the increase or decrease of the margin, although the delivery date is indicated on the contract, but before the delivery date can be transferred, the implementation of hedging, reduce and disperse exchange rate risk. Of course, the actual difference should be delivered in the spot, and this part accounts for a small proportion. In the case of forward foreign exchange transactions, settlement or fulfillment is carried out on the delivery date.

The foreign exchange futures trading business stipulated by the Shanghai Foreign Exchange Adjustment Center of China is familiar with the trading behavior between the listed foreign exchange and the RMB, and the foreign exchange varieties that can be traded are limited to the US dollar (the US dollar quota is compared with the US dollar spot exchange), the British pound, the German mark, the Japanese yen and the current price of the Hong Kong dollar. The standard contract amount for US dollars, British pounds, German marks, and Hong Kong dollars is 10,000 units, and the standard contract amount for Japanese yen is set at 10,000 yen.

Let me tell you in general: the leverage of foreign exchange can reach 1:200 or even greater than the largest of **, and foreign exchange is non-stop 24 hours a day.

There is also a limit on foreign exchange, and it can rise or fall infinitely on this day. As for the rest, these points are the biggest difference between the two markets.

High liquidity of funds.

The spot foreign exchange market has a daily trading volume of up to 1.4 trillion US dollars, making the foreign exchange market the largest and most liquid financial market in the world. The size of other financial markets is much inferior in terms of trading volume and the foreign exchange market. If foreign exchange investors use the ** market with a daily trading volume of only 300 dollars as an example, they will have a clearer idea of the degree of liquidity.

The forex market is always liquid, and you can trade or stop losses at any time.

24 hours a day.

The foreign exchange market is a 24-hour uninterrupted market, at 5 p.m. EST on Sunday, foreign exchange speculation began in Sydney, Australia, then opened from Tokyo, Japan at 7 o'clock, then started at 2 a.m. in London, England, and finally at 8 a.m. in New York, USA. For investors, investors can react instantly to any news whenever and wherever it happens. Investors can also have flexible planning for the timing of entering or exiting the market.

In contrast to U.S. foreign exchange** markets, such as the Chicago Mercantile Exchange or the Philadelphia Exchange, hours of operation are restricted. In the case of the Chicago Mercantile Exchange, the business hours start at 8:20 a.m. and end at 2 p.m. ET, so if any important news from London or Tokyo is not announced during business hours, the next day's opening will be chaotic.

e**。

Foreign exchange trading mainly refers to the buying and selling behavior of currency pair trading.

Foreign exchange margin trading and foreign exchange** trading are collectively referred to as foreign exchange trading.

In addition to the bank's purchase of foreign exchange business and the foreign exchange currency pair transactions currently opened by the bank without leverage (margin trading), other foreign exchange transactions are foreign exchange margin transactions. Leverage ranges from 1 2000, and the leverage is generally around 30.

Of course, as leverage increases, so does the risk.