Trading faqs

1、What is foreign exchange trading?

The foreign exchange market is by far the world's largest financial market, with daily turnover of about $4 trillion. The exchange rates of the world's currencies are floating and are traded in pairs of currencies, such as the euro against the dollar (EUR/USD) and the dollar against the yen (USD/JPY). It refers to the trade of buying one currency while selling another in a pair of currencies.

2、What is the opening time of the foreign exchange market?

Foreign exchange markets operate 24 hours a day from 5 p.m. Eastern time on Sunday through 5 p.m. Eastern time on Friday. Trading starts every day in Sydney and as the world turns, business days begin in every financial centre around the world, from Tokyo to London to New York. Investors can trade according to their own hours. Unlike stock and futures markets, foreign exchange trading is not centered on exchanges. The foreign exchange market is the "counter market" or "inter-bank" market, because foreign exchange transactions are completed by both parties through the Internet or telephone. So during the normal opening hours of the foreign exchange market, day or night, foreign exchange traders can always react to market fluctuations.

3、What are the major currencies traded in the foreign exchange market?

The currencies most frequently traded or most actively traded in foreign exchange markets are those of countries with stable governments, credible central Banks, and low inflation rates. The following major currency pairs account for 85% of the daily trading volume in the foreign exchange market today: the U.S. dollar (USD), Japanese yen (JPY), euro (EUR), British pound (GBP), Swiss franc (CHF), Canadian dollar (CAD), and Australian dollar(AUD)。

4、What is margin?

Margin refers to the principle of traders to leverage investment, use a part of the capital to establish a position, is to maintain the trading position of the deposit. In the foreign exchange market, leverage is typically between 0.2 and 5 per cent, allowing investors to trade actively with high leverage. Of course, margin rules multiply profits and increase trading risk.

Today, for example, Mr. Zhao has to make a deal worth $100,000. By margin trading, assuming a margin ratio of 0.2%, Mr. Zhao only needs 100,000 * 0.2% = $200 to trade. In other words, a $100,000 trade can be made on a $200 margin, a 500 fold increase in capital. So if you invest $10,000, you can do a $5 million deal.

5、How are commissions and fees calculated?

The quotes on the trading platform include our normal trading spread, which is derived from the interbank spread of all major currency pairs. Major currencies include the us dollar, British pound, Japanese yen, euro, Swiss franc, Canadian dollar and Australian dollar.Hong Kong Morgan Group Co., Ltd (Hong Kong) Investment Management Co., Ltd A high exchange rate gains from the spread between currency trades.

6、What is overnight interest?

Overnight interest is the interest earned or paid by a customer while holding a position overnight. Overnight interest is due at 5 p.m. Edt. Any position held by the customer at that time is automatically included in the calculation of overnight interest and the result is displayed in the trading account. The amount of interest earned or paid depends on the direction of the opening position and the different interest rates in the two currencies. For example, suppose the interest rate on the pound is much higher than the interest rate on the yen, so if a trader goes long on the GBP/JPY (holding the pound), he can earn interest from the extension of his open position. Conversely, if you short GBP/JPY, you pay interest.

For overnight interest queries on currency and precious metals contracts refer to your MT4 trading platform as follows: 1. Login to MT4 trading platform 2. Main menu "display" above the platform -> List of trades 3. Select the type of contract you want to view in the pop-up dialog box, and left-click "properties" on the right 4. Please check your overnight interest in the "sell/pay adjustment inventory charge" option

7、Why is the overnight interest rate on Wednesday three times higher than usual?

In the spot foreign exchange market, the actual date of value is two days later. For example, prices for Thursday trading are priced on Monday, and prices for Friday trading are priced on Tuesday. Therefore, on Wednesday we calculate the overnight interest for three days to compensate for the overnight interest over the weekend.

8、How do you manage risk?

In foreign exchange trading, the most commonly used risk management tools are "stop orders" and "stop loss orders". During trading hours in normal market conditions, stop-winning orders limit the highest or lowest bid price, that is, sell at a price higher than the current market price, or buy at a price lower than the current market price; Stop-loss orders are often used to automatically liquidate a position at a specific price when the market is moving in the opposite direction of the investor's position, during trading hours in normal market conditions, to help minimize losses by selling at a price lower than the current market price or buying at a price higher than the current market price. Of course, the above two orders are not always guaranteed to avoid trading risk.

9、Gold, silver spot trading trading hours?

in Hongze(Hong Kong) Investment Consulting Limited High exchange, you can trade spot gold and silver 24 hours a day, 5 days a week。Hongze(Hong Kong) Investment Consulting Limited (Hong Kong) Investment Management Co., LtdGold and silver are traded from 18:00 eastern time on Sunday to 17:00 eastern time on Friday, with the market only temporarily closed from 17:15 to 18:00 daily.

10, 1 gold, silver spot contracts equal to the number of ounces?

Gold spot contracts: 1 hand or 1 contract = 100 Troy ounces. < br/ > Silver spot contract: 1 hand or 1 contract = 5000 Troy ounces.

11、How does gold, silver spot exchange need margin to calculate?

Hongze(Hong Kong) Investment Consulting Limited It offers leverage of up to 300:1. High leverage gives you more return and risks.。

12、Gold, silver spot trading point value is what?

Spot gold trades at a spot value of $10 per hand (100 ounces). Silver spot trades at $50 a spot (5,000 ounces).

13、Do gold and silver spot contracts have an expiry date?

No. As long as there is sufficient margin in your account, your position will remain in effect until you close. As with foreign exchange, gold positions are automatically extended to the next delivery date after the New York market closes at 17:00 eastern time.

14、What's the value of 1 when you trade crude oil?

If you trade 1 lot of crude oil, 1 point is worth 1 dollar. If there are five trades, each point is worth $5.

15、Can I save the space for weekends and major holidays?

You can. You can save your position for a weekend or major holiday, but pay attention to whether your margin balance is sufficient to withstand market volatility. As with currency pairs, so-called short runs often occur when oil trading resumes. We recommend that the funds in the trader's account be able to withstand negative movements of at least 1% of the position to avoid forced unwinding.

16、What does the price of crude oil represent?

Represents the dollar price of 100 barrels of brent (UKO/USD) or west Texas crude (USO/USD).

17、What is the difference between brent, west Texas and other types of crude?

Crude oil can be classified into light crude oil and heavy crude oil according to API, and sour crude oil and sweet crude oil according to sulfur content. Brent is a light, sweet crude that comes from several oil regions in the north Atlantic. Brent is usually more expensive than the Opec composite. West Texas intermediate, which is relatively light and has a lower sulfur content, is often quoted at a lower price than brent.