In the foreign exchange market, according to the currency pairs traded, it can be divided into direct trading and cross trading. The so-called direct foreign exchange refers to currency pairs that contain the US dollar, while the cross-market value does not include the US dollar. At present, most investors in the market are doing straight trading. So, is it easy to do foreign exchange cross trading?
Is foreign exchange cross trading easy to do? The risk of foreign exchange cross trading is relatively large. Of course, the risk is high at the same time the return is high. Therefore, it is not recommended to do foreign exchange cross trading for novices. If investors are already familiar with cross trading, they can conduct foreign exchange cross trading appropriately. .
Forex cross trading is not easy to do, and its difficulties are mainly reflected in the following aspects:
First, there is no obvious regularity in foreign exchange cross trading. The regularity of foreign exchange cross trading is not obvious. Even if investors have mastered skilled technical analysis methods, the accuracy rate is not high when analyzing the market. To judge the trend of cross trading, it is largely dependent on judging other related two currencies For example, when judging the trend of the United Kingdom and Japan, we must first determine the trend of the United States, Japan and the United States and the United States, which adds a lot of difficulty to the analysis.
Second, the volatility of foreign exchange cross trading is large and the risk is relatively high. It is very common for foreign exchange investment to do cross trading with daily market fluctuations of 200 points. It is more difficult to set a stop loss. Setting a too small value is meaningless, and setting a too large one will test investors’ tolerance. In comparison, the risk factor is too large.
Third, the possibility of government intervention caused by foreign exchange cross trading is relatively high. When the government’s currency exchange rate is higher, the impact on the cross market is much greater than the direct market. The government’s intervention is like a time bomb, which also increases the risk of investors’ transactions.
All in all, foreign exchange cross trading is not easy to do. It is recommended that investors, especially novices, should do direct trading.