Forex Trading FAQs

1. What is foreign exchange?

Foreign exchange can be used for international settlement of the means of payment. The foreign exchange market refers to the operation of foreign exchange trading as a means of transferring international capital surplus and deficit market.

2. What is foreign exchange trading?

Foreign exchange trading is a kind of investment behavior, with a certain exchange rate between two currencies. In foreign exchange trading, investors use the exchange rate difference between different currencies, buy in low price and sell in high price to earn profits.

3. Who are the participants in the foreign exchange market?

Participants in the foreign exchange market mainly include central banks, commercial banks, non-bank financial institutions, brokers, proprietary traders and large multinational enterprises.

4. What are the main functions of the foreign exchange market?

The main functions of the foreign exchange market, including the provision of currency exchange, clearing and settlement services for international trade and investment to provide financial support to help investors risk management, as well as for the government and other institutions to provide monetary policy operation tools.

5. What kind of currencies are traded in the foreign exchange market?

The currencies traded in the foreign exchange market mainly include major currencies such as the US dollar, the euro, the British pound, the Japanese yen, the Chinese yuan, and some other minor currencies.

6. When is the trading time of the foreign exchange market?

Trading hours in the foreign exchange market are usually 24 hours a day and span different time zones. The main trading hours are concentrated in the European and Asian markets.

7. What is the price volatility factors in the foreign exchange market?

Price fluctuations in the Forex market are driven by economic data, political events, monetary policy and geopolitical risks.

8. What is the technical analysis of foreign exchange trading?

Technical analysis of foreign exchange trading is a method of predicting market trends through the study of price charts and technical indicators. Technical analysis that the market trend can be reflected in the price charts, through the analysis of the charts can predict the future price trend.

9. What is fundamental analysis in forex trading?

Fundamental analysis of forex trading is a method of predicting market trends by examining the various factors that affect the value of a currency. Fundamental analysis looks at the impact of macroeconomic data, political events, monetary policy and other factors on the value of a currency.

10. What are the risks associated with foreign exchange trading?

The risks of foreign exchange trading mainly include market risk, credit risk and liquidity risk. Market risk is the risk of loss due to market price fluctuations. Credit risk is the risk of loss due to default of the counterparty. Liquidity risk is the risk of not being able to close a deal in a timely manner due to a lack of sufficient buyers or sellers in the market.