Foreign Exchange Market

The foreign currency (or foreign exchange) refers to the currency bought in or sold out in the online foreign exchange market. That is to say, one currency is exchanged for another currency to make profits.

The foreign exchange market is one of the largest investment markets in the world. The exchange rate concerns the overall economic benefits of a country. On the one hand, the exchange rate trend depends on the overall economic ups and downs of a country and suffers no manipulation from individual financial groups and institutions. On the other hand, it is also the most flexible market in the world, making it convenient to buy and sell capital assets without affecting capital price fluctuations substantially. At present, the turnover of foreign exchange market exceeds 5 trillion dollars, among which 80% is attributed to the trading activities operated through financial institutions. Primary market participators include central bank, investment institutions (large-scale investment securities and other asset institutions and organizations), foreign exchange speculators, governments, financial service suppliers (such as investment banks, trust companies and insurance companies) and retail investors.

Thanks to the fairness and justice in the foreign exchange market, foreign exchange is one of the most popular investment products in the financial market.

  • Clients can control trading costs

  • Curb sanctions, adequate flexibility and transparent market

  • The leverage trading allows clients to select 1 times to 400 times of leverage at will

  • The financial market with the biggest capital flow in the world

  • There is no hidden procedure fee

Characteristics of Foreign Exchange Market

With economic globalization, liberalization and integration, foreign exchange trading is an important link in the international financial field. As China has high foreign exchange reserves, the Chinese foreign exchange market is the same as the stock market. Occurring from nothing, the foreign exchange market develops fast and has a huge development space.

Primary characteristics: bilateral trading and numerous profiting opportunities; 24-hour all-weather trading (Most favorable for Chinese investors: The golden time for foreign exchange trading is the most active time in the daytime European and American markets, namely from 20:00 p.m. to 24:00 p.m. of Beijing Time); limited investment capital and low starting point; an equal and fair market that is unlikely to be operated artificially; can be traded any time; leverage effect, trade little for more; limited categories of currencies and low analytical costs; stop loss and stop benefits, with huge profits.

Current Chinese Foreign Exchange Market

With the deepening of Chinese economic reform and the constant expansion of opening up, Chinese foreign exchange market is gradually formed and enjoys constant development. First of all, Chinese foreign exchange market meets a new trend: As Chinese market is further opened to the world, its total capacity, flow and structure of foreign exchange have changed significantly, exerting a huge impact on the supply and demand of foreign currencies in Chinese market. On the one hand, it is represented in the substantial increase of foreign trading and direct investment, namely foreign exchange supply and demand have reached an unprecedented scale in number, currency category and trading subject. On the other hand, foreign exchange risks increase with the expansion of Chinese diplomatic relations. The trading subject is in an urgent demand for avoiding and solving risks through the foreign exchange market. Thirdly, information technology is promoting the integrated development of the financial market. A new trend of the international financial development is as follows: The economy and financial internationalization are promoting the integration of the financial market; the development of Internet technology keeps accelerating the integration process; the electronic progress of the financial market is greatly improved.

Chinese foreign exchange market represents the trend of fast development