wholesale jewelry making supplies catalogs Real -time exchange rate (intermediate price) "

wholesale jewelry making supplies catalogs What is a foreign exchange real -time exchange rate (intermediate price) ""

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  1. wholesale jewelry blanks The foreign exchange trading market, also known as the "FOREX" or "FX" market, is the largest financial market in the world, with an average of more than $ 15 billion per day in the current-equivalent The remaining.

    "Foreign Exchange Transactions" is a currency in a pair of currency portfolios and selling another currency. Foreign exchange is a currency -to -form transaction, such as the euro/USD (EUR /USD) or USD/JPY (USD/JPY).

    The foreign exchange transactions are mainly two reasons. 5% of the daily transaction turnover is due to the company and government departments buying or. Sales their products and services, or they must convert their profit for the profit conversion of their money abroad. The other 95%of the transactions are to earn profitability or speculation.

    For speculators, for speculators, The best trading opportunities are always traded those most commonly traded (and therefore the largest flow volume) currency, called "main currency". Today, about 85% of daily transactions are these major currencies, including US dollars, yen, yen Euro, British, Swiss franc, Canada, and Australian dollar.

    This is a real -time 24 -hour trading market. Foreign exchange trading starts from Sydney every day, and with the turning of the earth, the business day of each financial center in the world will start in order. And New York. Unlike other financial markets, foreign exchange trading investors can respond to foreign exchange fluctuations caused by the economy and social and political events that occur during the day or evening.

    The counter (OTC) or the "internal bank" trading market, because in fact foreign exchange transactions were reached by the two parties of the transaction through telephone or an electronic trading network. Foreign exchange transactions are not concentrated in a certain exchange like the stock and futures trading market. The.

    The foreign exchange transactions are traded between a pair of currencies. Each currency uses an international standard organization (ISO) code logo composed of a unique 3 letter, such as GBP represents the pound and USD represents the US dollar. The currency is represented by two ISO code plus a separate symbol. For example, GBP/USD, the first code represents "basic currency" and the other is "secondary currency".

    The exchange rate is to use one currency as another currency price. For example, GBP/USD = 1.5545 indicates that a unit's pound (basic currency) can be exchanged for $ 1.5545 (secondary currency). Traders buy and sell basic currencies, and beginners often confuse this basic concept.

    The exchange rate is usually represented by four decimal numbers, and only the yen is represented by two decimals. The first two of the four decimals are "big numbers", while the third and fourth are collectively referred to as "points". For example, in GBP/USD = 1.5545, the large number is 1.55 and the third and fourth digits 45 representative points.

    The difference
    The same as other financial products, there are buyers in foreign exchange transactions (the seller's asking price) and the selling price (the buyer's bid). The difference between the buying price and the selling price is called the "difference".

    The difference is represented by a specific form. For example, GBP/USD = 1.5545/50 means that the buyer of 1GBP is 1.5545 USD, and the seller's asking price is 1.5550 USD. The difference is 5 points.

    The main currency pairs
    All currency symmetry exchanged for the US dollar is "main currency pair". Four main currency pairs are:

    eur/usd, that is, euro/USD
    gbp/USD, the British/USD (usually also known as "Cable")
    usd/jpy Yuan
    usd/CHF is the dollar/Swiss franc

    Colida
    non -US dollar currency symmetry as "cross disk". We can get the cross exchange rates of the British pound, euro, yen and Swiss francs from the above -mentioned main currencies. The exchange rate changes between all currencies must be coordinated, otherwise "round -trip transactions" and zero risks may occur.

    This is to sell

    each buying basic currency each time it means selling secondary currencies accordingly. Similarly, selling basic currencies means buying secondary currencies at the same time. For example, when traders sell 1 GBP, he bought 1.5545 USD at the same time. Similarly, when traders bought 1 GBP, he sold 1.5550 USD at the same time.

    It to explain this equivalent relationship. We can convert the USD/GBP exchange rate by converting the GBP/USD exchange rate and replacing the buyer's bid and the seller's asking price accordingly.

    usd/gbp = (1/1.5550) The buyer's bid; (1/1.5545) The seller's asking price = 0.6431/33

    64.31 points) and 1USD seller's asking price is 0.6433 GBP (or 64.33 points). Please note that at this time the US dollar became a basic currency, with a difference of 2 points.
    Basic

    The trading unit-LOTS
    If above, each foreign exchange transaction is exchanged for another currency. The basic trading unit of foreign exchange margin investors is called "LOT" and consists of a basic currency of 100,000 units (but some brokers can arrange for mini LOT transactions and 10,000 yuan as the basic unit of transaction).

    The purchase of a LOT GBP/USD is to purchase £ 100,000 at a price of $ 1.5852 for £ 1 for $ 158,520.

    Similarly, selling a LOT GBP/USD sells £ 100,000 at a price of $ 1.5847 at a price of 1 pound, counting $ 158,470.

    The margin

    In investors who buy a unit (LOT) GBP/USD do not need to take out the entire value of the transaction, as mentioned in the 158,520 USD mentioned in the previous example, Essence As long as buyers open a "security deposit" account, the transaction scale can be reached.

    because selling one currency means buying another currency at the same time, and a single GBP/USD trader actually bought a certain amount of dollars A deposit corresponding to the transaction value (158,470 USD).

    The margin requirements are 1%-5%of the potential value of the transaction. The currency currency depends on the trading agent of investors. If you trade through an American agent, then you may have to open a US dollar deposit account, even if you are a British resident.

    I assume that your deposit account is $ 5,000, and the margin requirements are 2.5%, you can build a position worth $ 200,000. Your position value will be continuously evaluated. If the money on the deposit account is lower than the lowest value required to support your open position, you may be asked to add money to the account. This is the so -called "margin notification".

    If the currency of your trading is not a currency accepted by a broker, you must turn your profit and loss into acceptable currencies. For example, assuming that you trades USD/JPY, your profit and loss will be marked with the yen. If your agent's local currency is US dollar, your profit and loss will be converted into US dollars based on related USD/JPY exchange rates.

    In shorting and doing more

    Is when you buy a currency, you are "doing more" for the currency. Multi -warehouse was established as the seller's asking price. In this way, if you buy a single GBP/USD at 1.5847/52, then you will buy 100,000 pounds at $ 1.5852 at £ 1.

    Is when you sell a currency, you are "short" to the currency. The empty warehouse was established by the buyer's bid, and in our example, 1 pound, $ 1.5847.

    Mymmetricity of currency transactions, you are shorting to another currency while doing more currency. For example, if you use 100,000 pounds to change the US dollar, you just short to the pound and do more to the US dollar.

    C settlement
    The open position means that the position is valid and is ongoing. As long as the position is open, its value will fluctuate with the market exchange rate, and all profit and loss will be reflected on your margin account. To close the position, it means to conduct peer -to -peer transactions in the same currency. For example, if you already do an additional single GBP/USD at the seller's asking price, you need to turn off the position and take a single single GBP/USD as the buyer's bid.

    It must be performed through the same intermediary agency when you start and end the transaction. You cannot establish a GBP/USD position at the A agent, and close the position through the B agent.

    In operation examples

    The bullish
    I assume that the current exchange rate of GPB/USD is 1.5847/52.

    • You expect that the pound will be appreciated relative to the US dollar, so you buy a single order of $ 1.5852 at a price of £ 1 and £ 100,000 at the price of the seller.

    • The contract value is 100,000 x $ 1.5852 = $ 158, 520. The agent's requirements for the US dollar margin are 2.5%, so you must guarantee at least 2.5% x 158,520 USD = 3,963 USD on your security account.

    • GBP/USD really appreciated to 1.6000/05. At this time, you decided to sell pounds and buy back the US dollar by buying the exchange rate of the buyer to close the position. Your income is as follows: 100,000 X (1.6000-1.5852) USD = 1,480 USD, which is equal to earning $ 10 at one point.

    • Your yield is 1,480/3,963 = 37.35%, which shows the positive effect of buying a deposit account.

    • If GBP/USD falls to 1.5700/75, your loss is as follows:
    100,000 x (1.5852-1.5700) USD = 1,520 USD, loss of 38.35%.

    The example tells us that margin transactions can enlarge your profits or losses.

    This decline
    You's estimated pound will fall from GBP/USD = 1.5847/52, so you decide to sell a single GBP/USD.

    • The contract is worth 100,000 x 1.5847 usd = 158,470 USD. In fact, you sold £ 100,000 and bought 158,470 USD.

    • The US dollar margin requested by your agent is 2.5% x 158,470 usd = 3,961.75 USD.

    • GBP/USD fell to 1.5555/60, then your book income is as follows:
    100,000 x (1.5847-1.5560 USD) = 2,870 USD
    n n n n n • 2,870 USD's book income is added to your security account, and you now have 6,831.75 USD. In this way, you can open a position worth 273,270 USD.

    • But if GBP/USD starts to rise, when the exchange rate reaches 1.6000/05, your book loses as follows:
    100,000 x (1.6005-15847) USD = 1,580 USD r

    • Your deposit account decreased by 1,580 USD to 2,381.75 USD. This can only support an open position with 2.381.75 USD/0.025 = 95,270 USD. And the amount you need to deal with is: 100,000 x 1.6005 USD = 160,050 USD. In this way, your "shortage of funds" is 160,050 USD -95,270 USD = 64,780. USD. Economy will issue a deposit notice to you, notify you to make up 2.5% x 64,780 USD = 1,619.50 USD. If you do not immediately continue the money, the economy will liquidate your position. rnrn• 最后你清仓时的汇率是GBP/USD = 1.5720/25,你的收益如下: rn100,000 X (1.5847-1.5725) USD = 1,220 USD rn
    Now you have no open positions, you can put forward the total $ 5,181.75 on the trading account with cash. In other words, you have enough margin to support a position worth 207,270 USD.
    control risk

    The risk of foreign exchange transactions. As we have seen, margin transactions can greatly increase profit margins or losses. Foreign exchange transactions need to be vigilant at all times, and traders need to sacrifice rest or leisure and entertainment time.

    The instructions immediately executed by the current exchange rate are called the market price list. However, traders can set some automatic instructions at some predetermined prices to control losses and consolidate the results.

    • Stop loss order (STOP): This is a instruction that automatically clears the position when the buyer's bid or the seller's asking price arrives at the predetermined price.

    If you hold more positions, you can set up a stop loss order below the current exchange rate. Once the market price falls below the stop loss trigger price, the instruction will be activated, and your multi -position will be automatically closed.

    If you hold an empty position, you can set the stop loss order at the current price. Once the seller's asking price is raised to resist the price, the instruction will be activated.

    "tracking stop loss" is the instruction set when entering the profit stage. This strategy is conducive to locking in profits. When the position becomes more and more favorable, by increasing the price of stop loss, traders can ensure that most of the book returns can still be achieved when the market reverses.

    The problems existing in the stop loss form are that in the ups and downs market, the exchange rate may break through the stop loss trigger price, so that the stop loss instruction cannot be performed in the accurate stop loss level.

    • profit command (TPO): opposite to stop loss orders (that is, restricting income). TPO means that once the current exchange rate has passed the set limit, the position will be closed. For empty warehouses, the TPO instructions will be set under the current exchange rate, while multiple warehouses will be reversed.

    • Limited price list: When the current exchange rate crosses some predetermined extreme price, the active buy or sell instruction will be activated.

    Is when the exchange rate falls below a predetermined extreme price, traders may set a "buy" limited order. Conversely, when the exchange rate is higher than that of a predetermined price, traders may set a "sell" limited price.

    The price limit order (Limit) may be effective within a specific period (such as one or one month), or "valid before cancellation" (GTC). The valid price limit on the day was valid for the rest of the trading day, unless it was executed before the end of the trading day. The GTC price limit is maintained to the transaction, unless the account holder issues instructions to cancel the order.

    • One instruction is valid. Another instruction cancellation (OCO): This is a stop loss order and price limit single combination (or two price limit orders) established at both ends of the price difference. When one instruction is triggered, the other instructions are terminated.

    For multiple warehouses, the stop loss order will be located below the market price difference, and the price limit sales instruction will be located above the market price difference. If the basic currency exchange rate breaks through the limited limit, the position will be sold automatically. At this time, the stop loss order is no longer needed, so the stop loss order will be canceled. Conversely, if the exchange rate falls to the stop loss single trigger price, the position will be closed, and there will be no price limit order at this time.

    For empty warehouses, the stop loss order will be located above the market price difference, and the limited price will be under the market price difference. If the exchange rate rises to the stop loss trigger price, the position will be closed, and the limited price will be canceled. If the exchange rate falls to a limited price single -trigger price, then the price limit instruction will be activated, the empty position is repurchased to close, and the stop loss order will be canceled.

    The screen -based spot trading

    Foreign exchange trading technology means evolved from telephone and electrical transmission to modern electronic broker system (EBS). And management functions, you can direct processing (STP).

    Inned EBS technology, individual investors can receive data flow from the agent they chose and conduct transactions directly. However, private traders are not in the interbank market transactions with small spreads. In practice, the agent will add points to the price difference to replace transaction commissions.

    The private traders must have the following conditions:
    • Margin account agent with Internet access and fast connection.
    • Computer terminals that can run several programs at the same time.
    • Patented software for establishing and managing positions and displaying technical analysis tools.
    • There are enough displays to handle market data, submit transaction instructions, display technical analysis, tracking open positions, management instructions (such as stop loss orders, profit instruction TPOs, price limit orders, etc.), and observing the status of margin accounts.

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