Advanced Financial Union Ltd
Forex Overview

Foreign exchange (Foreign Exchange or Forex) refers to foreign currency held by a country and means of payment in foreign currency for international settlement. The International Monetary Fund defines foreign exchange as: the foreign exchange is held by the monetary administration (central bank, monetary institution, foreign exchange leveling fund and the Ministry of Finance) in the form of bank deposits, Treasury stocks, long-term and short-term government bonds, etc. Claims that can be used in the balance of payments deficit. Forex means: 1 foreign currency. Including banknotes and coins. 2 foreign currency payment voucher. Including bills, bank payment vouchers, postal savings vouchers, etc. 3 foreign currency securities. Including government bonds, corporate bonds, stocks, etc. 4 Special drawing rights, European Monetary Organization. 5 Other foreign currency denominated assets. The concept of foreign exchange has a double meaning, that is, there are dynamic and static points. The static concept of foreign exchange: refers to the means of payment expressed in foreign currency that can be used for settlement between countries. Such payment means include credit instruments and securities in foreign currency, such as bank deposits, commercial drafts, bank drafts, bank checks, long- and short-term government securities, etc. The dynamic concept of foreign exchange: refers to a special business activity that converts the currency of one country into the currency of another country, so as to pay off the international debt and debt relationship. It is short for International Exchange. From the above explanation of foreign exchange can be seen: The first foreign exchange must be a foreign asset expressed in foreign currency, and the credit instrument and marketable securities represented by the national currency are not foreign exchange; The second foreign exchange must be a claim that can be compensated abroad, and the short check and the money draft rejected cannot be regarded as foreign exchange; The third foreign exchange must be a foreign currency asset that can be exchanged for other means of payment. The non-convertible currency cannot be regarded as foreign exchange. Since the renminbi cannot be freely exchanged on the international market, it can only be regarded as foreign currency rather than foreign exchange. First, the investment objective is the national economy The foreign exchange investment target is a certain country's economy, and unlike stocks, which are listed companies, this international market cannot be manipulated by some people, banks, foreign exchange dealers, funds, foreign exchange supply and demand, or even a certain country. Second, foreign exchange is bilateral trading A trader can either buy a currency pair contract as the beginning of a trade, or sell a currency pair as the beginning of a trade. Similarly, a currency pair can be bought or sold as the end of the trade. Both the ups and downs have the potential to achieve profitability. Third, the investment cost is light The amount of foreign exchange margin can be expanded to hundreds of times, so that the principle of financial leverage can be fully utilized to achieve a small scale. Fourth, the volume is large Forex is considered to be the most active and most mobile financial product in the world. The volume of global foreign exchange transactions is estimated to exceed $4 trillion per day. Such huge flows make exchange rate changes not for anyone, and are more regular. V. Ability to grasp the extent of losses Forex trading can set the stop loss limit by itself, and will not incur greater losses because it can't be handled without being in front of the computer. Six or twenty-four hours trading As the Earth turns around the market and trading hours continue, from the opening of the Sydney market on Monday morning to the closing of the UK market on Friday night, a 24-hour continuous market has emerged. One of the biggest advantages of forex trading is the opportunity to trade 24 hours/day, which allows traders to respond to and gain the advantage of profit from market changes. Seven, high rate of return on interest Stocks only pay a maximum of four dividends per year, while foreign exchange is an interest that can be enjoyed every day if an investor holds a high-interest currency contract. Eight, analyze the trend data more The foreign exchange market often follows the trend of repeated fluctuations. The money market shows a specific regularity, creating price trends that market participants follow. These price trends will add opportunities to make a profit on the trade. Nine, the consultation price is single, no mistakes The trading of foreign exchange margin is mainly based on telephone trading or online trading. In this way, investors can choose to play in the past 24 hours, and there is no risk of being unable to play and being trapped, which can effectively control the funds of investors. risk. Ten, flexible funds scheduling, high liquidity During the nearly 24 hours period, investors are trading according to fluctuations in exchange rates. There is no time limit for entry or exit, and funds can be remitted or remitted to the market at any time due to personal funds transfer. And flexibility Foreign exchange trading methods: Forex trading can be mainly divided into cash, spot, contract spot, futures, options, forward transactions and so on. Specifically, the cash transaction is a transaction between tourists and foreign exchange cashiers for various other purposes, including cash, foreign exchange travel checks, etc.; spot transactions are transactions between large banks and large banks. After the sale and purchase agreement is completed, the fund payment and delivery shall be completed within two business days at the latest; the contract spot transaction is a pipeline in which the investor and the financial company sign a contract to buy and sell foreign exchange, which is suitable for the investment of Flowserve; Time, and trading at a confirmed exchange rate, the amount of each contract is fixed; the option transaction is a pre-trade in the future whether to buy or sell a certain currency option; the forward transaction is based on the contract at the agreed date For delivery, the contract can be large or small, and the delivery period is also flexible. In recent years, the reason why the foreign exchange market can be favored by more and more people has become the new darling of international investors, which is closely related to the characteristics of the foreign exchange market itself. The main features of the foreign exchange market are: (1) there is no market The financial industry in European and American industrial countries basically has two systems, namely, centralized operation of centralized trading and a network of traders without uniform locations. Stock trading is conducted through exchanges, while foreign exchange trading is often conducted through a network of merchants that do not have a unified trading venue. It is not like a centralized location of stock trading, but the network of foreign exchange transactions is global and forms a loose organization; the market is connected by the pipeline and the advanced information system, and the brokers are not Have membership in any organization, but must be trusted and recognized by the industry. (2) Loop work Due to the geographical location of various financial centers around the world, the Asian market, the European market, and the American market have become a global foreign exchange market that works continuously 24 hours a day due to the time difference. New York time, 8:30 am New York market opened, 9:30 Chicago market opened, 10:30 San Francisco market opened, 18:30 Sydney market opened, 19:30 Tokyo market opened, 20:30 Hong Kong market, Singapore market Opening the market, the Frankfurt market opened at 2:30 in the morning and the London market opened at 3:30. With such 24 hours of uninterrupted operation, the foreign exchange market has become a market that stays up all night. Only on Saturdays, Sundays and major festivals in various countries, there will be no transactions in the foreign exchange market. The nature of this continuous work allows investors to find the best time to trade, so the foreign exchange market is a market without time barriers and space barriers. (3) Zero-sum game The Zero-sum Game is a concept of game theory, meaning that in the two sides of the game, one party's gain necessarily means the other party's loss. In the stock market, the price of a certain stock or the whole market index rises (decreases), then the market value of a certain stock or the market value of the entire stock market will also rise (decrease). However, in the foreign exchange market, the change in the value of the exchange rate fluctuations and the change in the value of the stocks are completely different. This is because the exchange rate refers to the exchange ratio of the two currencies. The change in the exchange rate is also the reduction of one monetary value and another. A new addition to the value of money. For example, in 1998, one dollar can be exchanged for 130 yen, and in 2008, one dollar can only be exchanged for 100 yen. This shows that the value of the yen has risen, while the value of the dollar has fallen, from the total value. It is the decline lost. For this reason, forex trading is a zero-sum game.

Risk warning: Margin spread contracts involve high risk and may not be suitable for all investors. Investors may encounter losses that exceed the amount of money they receive in trading. Messages on this website, e-mail or related websites will not recommend any financial products, nor will they contain information based on investors'personal goals, financial status and needs. Before deciding to trade margin spread contracts in AFUFX, please read our Product Disclosure Statement and Financial Services Guide carefully and seek the advice of independent experts if necessary. Investors with low risk tolerance or over 60 years of age are not recommended for trading. All information and content of this website may be changed at any time without further notice. You are browsing the interface of AFUFX's Hong Kong website. Please note that this website is set up by Chinese users who are easy to use. It is still an American website whose content is governed by the relevant laws of the United States and the Commonwealth. Transactions are risky and investments need to be prudent.