What is real foreign exchange trading?

Foreign exchange firm orders are timely reflections made by banks or foreign exchange operating institutions based on real-time foreign exchange market quotations, and are provided to investors with data or charts. Through domestic commercial banks, customers can exchange their own freely convertible foreign exchange (or foreign currency) into another freely convertible foreign exchange (or foreign currency) transaction, which is called “foreign exchange real transaction”.

What are the trading methods for real foreign exchange transactions?

Real foreign exchange transactions adopt the t+0 settlement method, and the transaction cost is reflected in the bid-ask spread. At present, domestic commercial banks provide a variety of trading methods for real foreign exchange transactions, and trading via the Internet is a better choice. So what are the commonly used trading methods for foreign exchange real trading account opening?
Foreign exchange real trading instructions are divided into two types: market price transactions and entrusted transactions

At present, real foreign exchange trading instructions are divided into two types: market price trading and entrusted trading.

Two ways of real foreign exchange trading

  1. Market transaction

According to the bank’s current quotation, the transaction will be executed immediately.

  1. Entrusted transaction

Entrusted transactions are commonly known as pending transactions, that is, investors can first send the transaction instructions to the bank. When the bank’s quotation reaches the exchange rate that the investor hopes to make, the bank computer system immediately executes the transaction according to the investor’s entrusted instruction.

The convenience brought to customers by entrusted transaction instructions is that customers do not need to keep an eye on changes in the foreign exchange market all the time, saving a lot of time. However, customers also need to be cautious when using entrusted transaction instructions, especially when the entrusted transaction instruction for opening a position does not follow the entrusted transaction instruction for stop loss. The foreign exchange market is changing rapidly, and rashly using entrusted trading instructions may bring you great risks.

5 practical tips for real foreign exchange trading

  1. Exit the transaction as planned and stop loss

To exit a transaction that has already lost money, the most effective procedure is to issue a “stop loss order.” If a trader has set a profit target before entering the transaction, once this target is reached, a “limit order” should be issued immediately to exit the transaction.

Another possibility is that the trader keeps letting profits rise until a certain price change shows signs of a loss. In this case, the exit plan may be set as: “Sell at the stop loss point, or sell when the index gives a sell signal, whichever happens first, whichever method is used.”

  1. Skillfully use limit order transactions

There are often two situations at key resistance levels: true or false breakthroughs (testing and stop loss often occur), and false breakthroughs are mostly. The establishment of limit orders can effectively prevent false breakthroughs, that is to say, sell or buy orders must be placed 10-15 points above and below the key resistance level; because this point is often fleeting, only limited price orders are traded. It may be captured, so it highlights the use value of limit order transactions.

This point also has an important role: when the key resistance level is broken, there must be a process of retraction to confirm the breakthrough, and the retraction position is often 10 points above and below the previous key resistance or support level. This shows that if you sell it wrong, you still have a chance to run.

  1. Sell high and buy low

Looking for a national currency with close trade relations and domestic political stability, selling high and buying low, making money is no doubt. The two countries with close trade relations have a tacit understanding of maintaining stable linkages between currencies. When the currency of country B drops below the most common price, buy on a large scale, and within half a year, the income will be abundant.

  1. One week off every month

Real traders can take a week off every month and wait for the monthly revelation of the new month. As a rule, every new month from Monday to Friday, countries, especially Europe or the United States, will disclose many important macro data and news. As a result, the foreign exchange market must be volatile. It is infinitely useful for ordinary speculators to dig through these news. .

  1. Orderly fast and slow

There are different operating rules for buying and selling of various currencies. Sensitive currencies have a large profit margin, but they are also prone to rapid declines, and will fluctuate sharply. The currency with this characteristic is the Japanese yen, so the operation should be bought and sold quickly.

Some non-sensitive currencies, such as the Euro, the U.S. dollar, and the Australian dollar, cannot easily exceed the 250-point fluctuation without major incidents. If there is a rebound, speculators can use software to draw charts at home and make buying and selling decisions at a glance.