Directions for Fresh Hand
Welcome to the biggest financial market—FX transaction market, which is becoming a choice of individual dealers, because a mouse, a computer and high-speed internet are sufficient to transaction.
The FX transaction was regarded as expert’s transaction, but comparing with the past, it has become simpler, easier and more suitable for any investors. This is because the new electronic transaction platform appears, market transparency gets a higher degree and the accessible information volume increased. Moreover, the benefit of individual FX transaction has also gained a broader recognition.
The FX dealers could access to global currency market in 24 hours of every working day (actually for six and a half day) and make decision for position of the main currencies held by them on the basis of rolling news. If the daily transaction volume exceeds 1,500 billion USD, its market liquidity shall not face any problems.
In fact, statistics shows that only 5% of currency transaction in the world aims to meet the actual demand for FX by government, commerce and international travelers, while the remaining is the speculative transaction caused by economic, politic and social events.
High Return
Only when the FX dealers could forecast the market, they are able to make a profit from transaction and the corresponding return is very high, because the profitable opportunity from leverage ratio based financing leverage shall be larger than that in a majority of futures trading or equity market. For instance, the transaction platform of Popular Excel Global Limited generally provides leverage ratio of 100:1, that is, when a dealer’s account is deposited into 1000 USD, he or she may conduct a FX transaction of 100,000 USD, which is called margin trading.
Obviously, the margin trading may benefit greatly from a very small currency change, but meanwhile, it will also face the risk of deficit.
However, the profitable opportunity in this financing leveraged margin trading is equal to the profitable opportunity of several other trades in one cycle every 24 hour, so it is quite attractive to those real dealers.
The FX transaction also has many other remarkable advantages, such as narrow-range pips with higher transparency, quick order implementation and lower transaction fee than any other markets. The transaction platform may gain from the provided gap rather than by receiving commission and other handling charge.
The prudent FX dealer would concern with some practical problems, thereby realizing that although to hold position at the time of currency change will have many variable factors and obvious risk, the FX transaction shall rely on practical market conditions. The saying, “Market tendency is just friend”, appropriately describes the FX transaction market; the currency often is affected by many factors such as interest rate circulation and imbalance of transaction payment, so the currency may record its changes in estimated tendency.
Furthermore, the currency may make corresponding response according to politic and economic change and news of every day, so the profitable opportunity is produced.
Advantages:
To sum up, the advantages on FX transaction of individual dealers include:
24-hour incessant transaction lasts for six days in one week;
The scale of global FX transaction market is 50 times more than New York Stock Exchange, but its market liquidity does not have any problems.
The leverage ratio in FX market is usually 100:1, much higher than other markets.
The transaction fee is lower than other transaction varieties.
The gap is smaller but can make dealers get the maximum return.
No matter the currency market rises or fall, the dealers could make a profit.