There are many risk management strategies for controlling risk in currency trading. The most common ones are stop loss and limit price. Stop Loss can be set directly on the MT4 platform to circumvent a wide range of risks by setting a loss that you can afford. Limits and stops are executed in the same way, but can be set at a higher price. 2. What are the factors that affect exchange rate fluctuations? In general, the most common factors that cause exchange rate fluctuations are interest rates, inflation, and political stability. a. Economy: economic data on national production growth, balance of payments, bank interest rates, employment, and other related indicators, indices, statements, etc. b. Politics: Relevant policies that stimulate the economy and political changes that benefit the society. c. Message: Release good news and important people's speeches. d. Disaster: military war, terrorist attack, natural disasters, etc. e. Market: Due to the large number of private equity and investment companies in the world, the hot money is very strong. In a short time, they will influence the market trend, and technical analysis will become the key. At the same time, these factors also affect the futures market. In particular, the United States, as the center of world financial trade, is a matter that we must always pay attention to. There are also countries in the European Union. Generally, some financial data, major political news, and devastating events may lead to a sharp rise or fall in the exchange rate. 3. When does the money market start and close? The money market is a 24-hour market, with every trading day moving from Wellington, New Zealand to every financial center in the world. Most of the currency transactions here take place in Tokyo, London and New York. The currency market is open on Sunday at 22:00 pm (Greenwich Mean Time) and closed on Friday at 22:00 (Greenwich Mean Time).
Participants in the money market are mainly central banks, commercial banks and investment banks. However, in recent years, due to the impact of the development of the Internet on the money market, the number of participants has increased significantly. Participants in currency trading now include large multinational companies, fund managers, registered traders, currency brokers and private investors.
Usually we understand interest rates like this: it means how much the loan has to pay, whether it is a mortgage or a gain from bonds and financial market investments. The interest rate policy is the core factor affecting the exchange rate and is a typical strategy for newcomers to currency trading.
The method of making money in a currency transaction is generally to buy low or sell high or sell low. Because of the leverage provided, you can participate in the currency trading market with less money and earn more profits.
Currency trading is the world's largest financial market with an average daily trading volume of $5.3 trillion. Currency trading is the buying of one currency while selling another, so it is always traded in pairs. Currency quotes continue to fluctuate based on market demand and supply.
Currency traders often use technical analysis or fundamental analysis strategies. Technical analysis has been increasingly sought after in recent years, with technology traders making short-term or mid-line deals by judging trend lines, support lines and resistance lines. And some people do business by interpreting economic information, such as news, government reports, economic data, and even some rumors. In addition, some speculators are interested in emergencies other than fundamentals and policies. These emergencies, such as central bank intervention, interest rate changes, political time and even war, have a greater impact on the market, and once they seize the opportunity, they can make huge profits.
No, currency trading has never been as cheap as it is now. Traders only need to apply for an account to be incorporated into the gold 50 dollars to start trading. The leverage of 1:25 can amplify the trader's profit, and of course also means that the trader needs to bear a greater risk of loss.
Anyone can trade around the world via the web. MT4 is a universal platform. Once you download and install this platform, you can see the quote window on the platform and click on the transaction. At the same time, you can also trade through mobile devices such as mobile apps and tablets.