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What is contract spot foreign exchange trading

Victor by Victor
16/01/2023
in Knowledge
Some characteristics of foreign exchange
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Contract spot foreign exchange trading is an entrusted sales contract signed by an institution or a company bank that investors want to engage in financial foreign exchange trading. The middleman benefits by paying a certain ratio of margin, so that investors can carry out large-scale transactions. financing of funds. Foreign exchange investment appears in the form of a contract, which can mainly save the investment amount. The amount of profit and loss between the actual purchase and sale and the margin transaction is exactly the same. The difference is the difference in the amount of funds invested by investors.

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At the same time, we must also notice that although the amount of margin for buying and selling foreign exchange in the form of margin is small, the funds that can be leveraged are large, so we must prevent losses due to improper operations, or even lose the margin. The trading of foreign exchange can be done both ways, and the rise and fall of the exchange rate can make money. What factors should we consider?

First of all, we need to consider the change of foreign exchange rate, and the second consideration is to consider the expenditure and income of interest. Investors should put the trend of foreign exchange rate first, and put the income or expenditure of interest in the second place. Finally, consider the cost of handling fees. Therefore, in foreign exchange transactions, we must pay attention to every detail, and of course we cannot let things like picking up sesame seeds and losing watermelons happen.

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