Although you can often hear something like " forex investment," this type of argument. But frankly speaking, the stock is different, unless you truly hold foreign exchange, or engage in real trading banks which have a certain foreign currency , such as dollars. We still can be called "investment in dollar assets ", the world face all products with a lever , are only counted as speculation. Because of the nature with leverage , you can not determine to a large extent the long-held assets.
There are a lot of people may not understand the concept of CFD products. In fact if we consider the bank launched the paper gold , you can have a little concept. And paper gold, trading CFDs who do not really have a product which can not delivery . CFDs just use fluctuations in market prices , taking a derivative profits. Just behind the contract price data only, and no real goods or currency trading.
Forex market generally contains two concepts , one is an international inter-bank foreign exchange market , and the other is what we call the retail forex industry for individual clients investment / speculative market . Which in turn can be divided into two, one is without leverage , the bank launched the foreign exchange trading firm , one is composed of many leading offshore forex trading platform , forex margin trading Chinese were not regulated . Since the latter were not national regulators , resulting in the market is very confusing , there are many domestic liar, own registration site , disguised as a foreign platform that enables ordinary people is difficult to distinguish the authenticity. Plus some domestic media professionals in screening customers do not distinguish whether formal, the more ordinary people to create obstacles and puzzled. Even the most well-known sites such as www.fx168.com within the margin industries like, on which advertising platform , as long as the money can also vote , and regardless of whether its formal, so do not want to think that they have put on these media FX channels such as Sina or an analysis of the article is a regular platform platform because Sina FX channel also frequently reprinted articles fx168 on , also without analysis. www.fx110.com fact, I do want to do things that ordinary market participants can learn whether their formal platform through this site , but it needs to be noted is that the site also has some brokerages recommended parts. They are also recommended to receive advertising fees from brokerage brokerage office and give them a special plate, although these recommended brokers can guarantee really is a regular platform, but the authenticity of the user evaluation and experience may not be guaranteed.
Although there are a lot of people lose money in the foreign exchange margin , especially in the foreign exchange market, the market , but definitely can not say that this market is not a market , this market is really a very good market . In fact, in 2012 , many of the world foreign exchange market makers have poor performance because of the ability of individual investors in the world become strong, even forcing many makers turn to ECN or STP mode. The only problem is that the vast majority of people, especially Chinese people do not understand how kind of trading is the "right" way to trade .
Many people will ask Platform: you are a market maker or ECN, because are more like ECN, worried maker tricks , but in fact their own pros and cons . It is necessary to work for a market maker to make some notes . Some say the difference maker just profit by point , this is absolutely wrong. Market makers to provide liquidity to the market , the reason is that they are also market participants. Consider the most basic case , people know that the stock market and most people lose money in the foreign exchange market , the principles of a market maker is very simple, as long as the majority of people standing in the back , you can make money. If some of these people then relatively strong profitability of trading people go into real market obliterated , and that he can retain profits even more substantial. In actual operation , due to technical limitations and other reasons , this is often not perfectly achieved . So there are many market makers choose to do all of the hedge , which is commonly referred to as disk opponents do . For example, the world's largest retailer Oanda transaction is to take all the way to eat alone , because of its huge trading volume , and the assets of the company is very strong , so do not worry because twelve particularly profitable customers and affect their company's financial stability. For other formal platform , which was in some select all hedges , and some choose to put part of the way the inter-bank market , all of which depend on the company 's situation and risk control departments dealing room of professionalism.
Conversely ECN or STP, which is due to technological advances brought new ways for ordinary investors, its advantage lies in low spreads , as well as tricks of the case do not worry about the platform . But the real fact is concerned, there are two issues , one is the ECN or STP is " true ." Some of their regular outreach brokerage platform is ECN platform, but the truth is they flow cell , another one of its own holding companies accounted for 60% to 70 % of the flow cell , in this case , Although the list of customers is trading in the flow cell , but in most cases still do business with the market maker in no different . The second problem is the inherent problem ECN or STP , not timely turnover and slippage serious. Although most of the time in the usual point of difference is relatively low, but in the case of slippage ECN or STP is very common in market liquidity conditions or unidirectional relatively scarce scarce liquidity situation , such as when important data release the situation slippage and the situation can not be traded will be more pronounced than under the market maker model, relatively speaking, to the point of difference between the market maker is guaranteed . Generally speaking , if the author to choose, would choose a quite strong market makers will do more good points . Platform tricks on the issue , as long as the platform is a regular , usually occurring without the General Assembly , of course, a special case , you can complain to the relevant regulatory authorities . Please exclude significant data release point widened the lead to stop that sort of thing , because these are commonly occurring situations , not the platform intends to play tricks . Of course, sometimes circumstances arise Oolong trading department , such as the client's data to the wrong cause K line graph clients significantly different from other platforms. This situation can only complaint with the platform , the platform usually formal and properly handle the matter.
Altough we do not deny that there are indeed many powerful short-term expert , but we can be sure that absolutely does not fit most heavily loaded short-term investors . Forex firm 's leverage is 1:1. Leveraged margin trading is usually 1:100. However , the actual maximum leverage is preferably not more than 10 times .
That margin ratio not lower 1000% as well. Ratio is more suitable between 1,000% to 2,000 %. People will have no reason delusion. One made a hand earned 50 points would think that if I had more than 10 hands down better . But really the next 10 hands , when he was always waiting for warehouse explosion.
If you are involved in the market without some basic concepts , such as point values , margin ratio , leverage, or have no concept of the value of the contract , it is not recommended for admission.
The target holder is usually 20 points to 50 points , watching 30 minutes , 1 hour, 4-hour chart , refer to the daily and weekly charts . Be the holder typically less than two days of trading . If you plan to hold one more time , it is recommended to reduce the number of hand-held single , lower the lever . People always tend to profit alone will soon open , but will hold until a single loss burst positions . And stock operation is different, "Let profitable growth" is particularly important in financial products with leverage , and timely loss single open , takes a lot of determination. And let the profit growth is usually open to some as half or part of the other half , or stop part way to track completed to ensure part of the profits. Each different specific techniques.
About Stop Loss and Take Profit . Does not necessarily have to set the stop or profit. But my heart is about to have a basic concept. Take profit and stop-loss ratio of higher than or equal to 1.
Part of the reason is not recommended short-term is also heavily loaded with this , because human nature will make everything happened so fast , unwarranted paranoia prices will own ideas to make even the occasional lucky a few times , I fear, could not escape the final outcome. Another excuse to heavily loaded likely to cause short-term platform for the platform , the number of points with different prices for other platforms can be tolerated.
Do not always think of trading. Most people are not professional traders in bank , so your advantage is also here . Coz no one is forcing you to make much profit each month . To the highly confident of circumstances approach, increase your winning percentage is the most basic rule, judge the success greater than 50% is your goal .
Do not let the market response before the impact of your decision, " It would be great if *** " The idea of the kind of frustration caused by the interference you can make the right decision. Because although you respect your discipline , the market reversed , thus causing damage to you , but you know , next time in case the market does not reverse, your discipline is to save all of your principal.
Most importantly, want to "leverage" and control risks have absolutely clear understanding.
Retail foreign exchange margin trading in foreign markets and the financial markets one of the components , but for various reasons , most recently continued to strengthen its supervision . This one is still in the country is currently no regulatory status , and because the vast majority of the losses , the government may therefore reluctant to excessive social problems , so although the bank has been opened before , but soon closed, so in the domestic and can not say that it is a legitimate business being regulated . But remittances to overseas transactions , subject to the supervision of financial institutions abroad , in countries where regulators can say it is a lawful act .
However , the stock market and foreign exchange markets are composed of one part of the financial markets . China off from the outside can not always popular way to trade the foreign exchange market . I hope we can improve the country as soon as this piece of regulation , and can therefore develop a variety of financial professionals , to withstand the impact of the international financial markets. In fact, if worried about loss of assets abroad , the United States and Japan can learn methods : (1) reduce the leverage 2 only allows its citizens to trade in the domestic platform . Another problem is that the bank spreads are too high, but also affect one of the reasons many customers turn to offshore platforms.
