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| How to Do FX Transaction? |
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How to Do FX Transaction? So, how to do FX transaction? In fact, FX transaction is done via contacting vendors with purchasers by electronic network provided by transaction platform. Not like stock or futures market which is done centrally in stock exchange, it mainly is done by “over-the-counter” via banks or operators such as Popular Excel Global Limited The majority of FX transaction is mainly done among main currencies in the world such as USD, JPY, EUR, GBP, SF, CAD and AUD. The above-mentioned currencies hold 85% currency transaction of all, which are favored by dealers most. These currencies may reflect the incessant change of market, so when some minor currencies hooked with main currencies have little deviation with them, the opportunity of profit can still happen. Upon transaction, it is necessary to match one currency with another. The position shall be kept by gain or loss produced due to relationship change between both currencies. The Base Currency generally refers to USD, which is firstly quoted based on its value, but another currency refers to bid price per USD. The FX transaction usually offers at bid and ask price and refers to instant price basically at any time in market. Bid price refers to the price of selling out base currency (simultaneously buying corresponding currency); ask price refers to price of buying base currency (simultaneously selling out corresponding currency).  The difference between bid and ask price is called spread. The operators make profits through the spread offered, so they will not ask dealers for commission. The currency pair shall be expressed by four digits behind decimal, called “Pip”, viz. initial abbreviation of price, interest and point. Therefore, one pip will be produced from 1.0000 rising to 1.0001. If USD is one in currency pair, one pip usually represents its value of 10 dollars. The standard amount of one currency transaction is 100,000 dollar, viz. a lot. Basic Essentials for Transaction Many experts think that the mistake often made by fresh hands of FX transaction is about position number. Generally speaking, many transactions only hold a lot and one currency (the value usually is 100,000 USD); however, the dealers will make corresponding decisions according to it and neglect other indexes. One solution is to make another currency transaction in conducting present transaction, which can let the dealers meet cash flow or other requirements at opening and closing position, and meanwhile, dealers could hold position in accordance with the relevant technical indexes at the same time. After mastering basic essentials, the success of FX transaction also relies on understanding for technical tools, that is, how to read chart and keep close eyes on everyday news and trends to know market tendency. Also, it is crucial to know basic factors which affect FX transaction. The economic power of |