Latest Articles

Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeFOREXWhat is Currency Speculation?

What is Currency Speculation?

Fry foreign exchange to call foreign exchange security deposit trades again, sign an agreement with the bank, open trust investment account, deposit brushbrush capital (security deposit) as assure, by the bank (or broker) set credit to operate limit (namely 20-400 times lever effect, more than 400 times illegal).

Forex speculation involves investors trading foreign currencies with financing provided by banks, market makers or brokers. Speculation foreign exchange general financing ratio in more than 20 times, that is, foreign exchange investors can be magnified 20 times to trade. The larger the proportion of financing, the less money the customer needs to pay, making full use of the leverage effect of small fight big. In addition to capital amplification, the most attractive feature of forex speculation is that it can work both ways. You can buy to take profits when currencies rise (going long) and sell to take profits when currencies fall (going short), without the limitations of what you can’t do in a so-called bear market.

Tips: usd pullback but investment banks are still generally bullish, the euro rebound under the crisis of recession may be temporary. For specific operation, please pay attention to the Reelfinancial.com. The market is changing rapidly, so investment should be cautious. The operation strategy is for reference only.