Readers who often see the exposure of friends, also found that many victims of foreign exchange fraud are new to the foreign exchange circle, for the concept of foreign exchange trading, even the basic issues of foreign exchange may not understand. But it is such a foreign exchange novice, it is easy to be led by the nose of scammers. Therefore, there are basic issues about foreign exchange, it is necessary to popularize some foreign exchange novices, and some scams can also be avoided in time.

What is Forex trading?

Foreign exchange is the exchange of one country's currency with another country's currency. Unlike other financial markets, the forex market does not have a specific location or central exchange, but is traded through an electronic network of banks, businesses and individuals. Forex trading is the simultaneous purchase of one currency in a pair of currencies and the sale of another currency. Forex is traded in currency pairs, such as the Euro /US Dollar (EUR/USD) or US dollar/Japanese Yen (USD/JPY).

This is an official explanation from a certain degree, translated into a simple and popular explanation is that foreign exchange trading is the exchange between currencies, through the exchange rate fluctuations to earn the difference, but the currencies included here include many kinds of: US dollar, Japanese yen, British pound, euro, Canadian dollar, New Zealand dollar, Australian dollar, Swiss franc and other mainstream currencies. A currency pair that crosses with the US dollar is called a straight pair. And in addition to the dollar with other currencies to mix and match, called a cross currency pair.

2. What can Forex trading bring you

To put it bluntly, forex trading is also a form of investment, so what can investment bring you? Profitable assets, of course. But you need to know that investing is risky, and so is forex trading. It is not that crooks say that foreign exchange trading can bring 100 percent profit, and those who say that high profit break-even income are black platforms.

Foreign exchange trading is not so easy, the same need to trade knowledge and experience to support, rather than listen to those liars cheat you, it is better to learn more foreign exchange knowledge, not only to see through the technical loopholes of liars, but also to benefit their trading operations.

Third, the choice of foreign exchange platform

Investors often ask, what about this platform? Is this platform formal? This is an overseas platform should be OK? In fact, the reason why it is difficult to choose a foreign exchange platform is that there is no formal foreign exchange platform in China, and the formal platforms on the market are overseas, and it is easy for those fraud gangs to take advantage of the opportunity to enter. And because of the language problem, forex beginners are easily dazzled and do not know how to make choices.

The most important point in choosing a foreign exchange platform is the regulatory license, of course, we emphasize that we should still choose some mainstream supervision, such as offshore supervision is not particularly recommended. Although there is no problem with some platforms having offshore supervision at present, since it is to do investment transactions, the choice of more reliable mainstream supervision is more worrying.

At present, the mainstream foreign exchange regulators in the world are the United States NFA, the United Kingdom FCA, Australia ASIC, New Zealand FMA and Hong Kong SFC, of course, there are some other regulators, you can go to the foreign exchange eye for specific inquiries, such as which regulator you like, you can also directly choose the foreign exchange platform under its supervision.

Speaking of it, we have to mention some licenses without the ability to regulate foreign exchange trading, many black platforms like to use these regulatory licenses to deceive foreign exchange beginners, such as Canada's MSB regulatory license, which is a regulatory anti-money laundering agency, so many foreign exchange platforms can easily register; For example, Saint Vincent and the Grenadines Supervision, its officials have made it clear that they do not have the ability to regulate foreign exchange, but those black platforms are "lying through their teeth"; Another example is the Hong Kong gold and silver trading ground, which was very popular some time ago. This is simply a non-governmental organization, and there is no government supervision.

Of course, these regulatory licenses are not really owned by the foreign exchange platform, and they must be checked by themselves, especially by using the foreign exchange Eye, and a simple query will know whether the platform really holds a regulatory license!

Iv. Summary

For the early foreign exchange novice, solve the above problems can enter the foreign exchange market, but the final analysis of foreign exchange trading is investment, how to use this investment to make money? Still need to rely on their own to explore, but the focus of today's emphasis is that only choose a safe, regular and reliable platform, your foreign exchange trading road is the real start.