FAQ

 

1. Is foreign exchange a fair market?
 
Foreign exchange is considered to be the fairest and most transparent market in the world. The main reason is that no single country or bank can fully control the direction of currency due to a large number of market participants, huge scale and transaction volume.
 
 
2. How can I make money through foreign exchange trading?
 
The way to make money is to buy low and sell high or sell high and buy low. Because we provide leverage, you can participate in the foreign exchange market with less money and earn more profits.
 
 
3. How can I control risks in foreign exchange transactions?
 
There are many risk management strategies to control risks in foreign exchange transactions. The most commonly used are stop loss and effective leverage. Stop loss can be set directly on MT4 platform to avoid a wide range of risks by setting their own losses. In foreign exchange trading, effective leverage refers to the ratio of trading position to trading capital. If the total trading capital is 10000 and the trading position is 100000, the effective leverage is 10:1. In foreign exchange trading, many small capital traders are inexperienced. They like to set their effective leverage very high, which may lead to great losses in the trading account. Therefore, reducing effective leverage can control transaction risk accordingly.
 
 
4. Who are the main participants in the foreign exchange market?
 
The participants in the foreign exchange market are mainly the central bank, commercial banks and investment banks, but in recent years, due to the impact of the development of the Internet on the foreign exchange market, the number of participants has greatly increased. At present, the participants of foreign exchange trading also include large multinational corporations, fund managers, registered dealers, currency brokerage companies and private investors.
 
 
5. How can I trade through the Internet?
 
Anyone can trade all over the world through the Internet. MT4 is a universal platform. Once you download and install the platform, you can see the quotation window on the platform and click transaction. At the same time, you can also trade through mobile devices such as mobile phones and tablets.
 
 
6. What does point difference mean?
 
In foreign exchange trading, you will see a quotation on both sides, which is composed of ask and bid. The purchase price represents the price at which you can buy the base currency (and sell the non base currency at the same time); The selling price represents the price at which you can sell the base currency (while buying non base currency). The difference between the buying price and the selling price is the point spread, and traders make profits through the point spread.
 
 
7. What are take profit and stop loss
 
After you conduct foreign exchange transactions, you will encounter the words "take profit" and "stop loss", which are both used as tools to control risks.
 
Take profit: lock the profit when the order reaches the expected profit price. When the order is profitable, the market suddenly reverses, and the profit will be less and less, even the final defect. Therefore, in order to maximize the profit of the order, or believe that the order can reach a certain price, you can set profit stop on the open order at this time. Then when the actual price reaches the price you limit, it will become a market price order to close the position and lock in your income. Zhiying always guarantees the price, but it does not guarantee the transaction. Once Zhiying completes the transaction, it will definitely be at the price you set.
 
Stop loss: for orders that have opened positions, stop loss can control the range of order loss. Set a price opposite to the forecast direction. When the market price reaches this price, it will automatically close the position. It is generally used to misjudge the trend. Stop loss can avoid the expansion of loss.
 
For example, your European and American currency pair EURUSD multi order opens when the price is 1.05000, and the profit stop is set at 1.06000. When the actual price reaches 1.06000, your order will be closed automatically and 1000 profit points will be locked.
 
Your European and American currencies have set a stop loss at 1.04000 against EURUSD. When the actual price reaches 1.04000, the stop loss will be closed automatically. The purpose of setting a stop loss is to prevent greater losses, such as falling below a support level and then continuing to plummet. Please note that stop loss only guarantees the transaction, but it does not guarantee the price when the market fluctuates greatly.
 

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