What does the future hold for Forex trading?
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It is difficult to predict exactly what will happen to the world’s largest financial market, but it is certain that technology and high-tech products will play an even greater role in trade over the next few years.
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1. Macro-level analysis: The operation of foreign exchange market countries is essential. Can it be bad in the future?
The foreign exchange market, like the stock market, is the lifeblood of the national economy and an essential part of a country’s economic development. Like two legs of a person, one is the domestic economy and the other is international trade.
The operation and settlement of international trade use foreign exchange settlement.
Foreign exchange settlement is used when going abroad or introducing advanced commodities and technologies from the West.
The most powerful symbol of a country’s international strength is whether its currency is accepted by other countries around the world.
The biggest reason why the United States has dominated the world for so many years is the hegemony of the US dollar.
Therefore, the foreign exchange market is the most important value for any country.
The investment market is the highest level in the smoke-free battlefield. Therefore, the scale of the foreign exchange market is very large. If there is no foreign exchange market, a country is equivalent to a closed door!
2. The average daily trading volume of the foreign exchange market is US $6 trillion, a huge market scale that cannot be matched by any industry.
Foreign exchange margin trading is a must-have weapon for investors in developed financial markets such as North America.
In addition to making profits directly through trading, it also has many functions such as hedging.
Some traders invest in portfolios with stocks, gold and agricultural products.
As an international capital speculation market, the foreign exchange market has a much shorter history than the stock, gold, futures, and interest markets. However, it has developed at an alarming rate.
The foreign exchange margin, which is likened to “the pinnacle of personal finance” in financial products in Europe, America, and Japan, has gradually replaced stocks and futures as mainstream commodities in the world’s finance along with the promotion of the globalization of financial integration.
3. The legal supervision and regulation has lead to sound development of foreign exchange market.
The foreign exchange markets of the major developed financial countries in the West include: full-time supervisory departments, a sound legal supervision system, investor funds segregation and deposit systems, and financial security plan reinsurance systems to ensure the safety of investor funds.
Coupled with advanced network technology and foreign exchange trading rules, foreign exchange transactions and foreign exchange wealth management have become the most popular wealth management products in Europe and the United States.
The global foreign exchange transaction volume has maintained an annual growth rate of 200% in recent years.
The global foreign exchange market has the strictest supervision, and the countries where investors have the best protection are the United Kingdom, the United States, Japan, and Switzerland.
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4. Compared with similar financial products, foreign exchange investment is more humane and welcomed by investors
The liquidity in the Chinese market is very high. China’s large amount of cash has nowhere to invest, making many people risk investing in the non-standard P2P market.
Once foreign exchange investment is accepted by investors, it will be meaningless not to become the most popular investment channel.
Therefore, anyone who comes into contact with foreign exchange investment will stay in the foreign exchange market.