The essence refers to foreign exchange varieties.
The essence of foreign exchange varieties is a commodity.
The reason why futures market exists is that commodity prices in spot market often fluctuate violently, which is not conducive to the production and operation of spot traders.
So they need futures markets to hedge their risks.
Volatility, in other words, is the theme.
So if you want to profit from trading FX, you have to design your own trading logic based on volatility.
How to profit from volatility?
First look at the pattern of fluctuations: uncontrollable amplitudes are a typical feature.
Since no one knows when this trend will start, when it will end and where it will end.
Currency varieties will fluctuate on the back of news.
Risk-averse speculators don’t know how long news will spread in any situation, and neither do spot bosses or spot firms.
If someone knows, they can predict the market and risk in advance, so there is no need to exist.
Therefore, unknown trends are inevitable.
Because volatility exists, we traders can play to our strengths and help us try to follow trends.
Since the scope of the trend market may be infinite, we can grasp the fluctuations of a market may be enough to keep us alive for many years.
The dollar recovered gold below 1950, the United States oil once broke through the 100 mark, London nickel trading will resume.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.