Is it legal to speculate on foreign exchange?

I don't know since when, the unsung hero of foreign exchange has become a household name in China. In my impression, after 16/17 years of coverage by major media and brokerages, the Golden Fair, and the promotion of CCTV news, this globally recognized largest investment and wealth management product has been well known and recognized by the general public. Foreign exchange has become the best choice for domestic people to invest and start businesses when real enterprises are struggling!

Is foreign exchange legal?

The answer is legal. At present, there are two ways for Chinese citizens to participate in foreign exchange, foreign exchange real trading and foreign exchange margin trading!

Foreign exchange transactions;

Foreign exchange transactions provided by major domestic commercial banks, customers through the domestic commercial banks, their holdings of a freely convertible foreign exchange into another freely convertible foreign exchange transactions, such as China Merchants Bank, Construction Bank, Industrial and Commercial Bank of China, etc. have foreign exchange transactions.

Participation methods;

Apply directly at the counter of the corresponding bank.account openingAfter that, you can purchase foreign exchange and deposit it into the account, sign a foreign exchange transaction agreement with the bank, apply for online banking, and then log in to the bank's website with a computer to enter the online banking transaction.

Features of foreign exchange real offer:

The spread is large, between 16 and 40 points, which greatly increases the transaction cost for investors.

2. Only one-way profits can be made, and the income comes from the exchange rate difference between buying and selling.

3. No leverage

Due to the absence of capital leverage, the income of real foreign exchange transactions mainly comes from the amount of principal invested, so the threshold for capital requirements will be very high. If it is a small amount of capital, it is impossible to make money at all!

4. Due to the regulations of the Foreign Exchange Administration, domestic banks "exchange banknotes at the same price"

Since the profit of real foreign exchange trading mainly comes from the exchange rate difference, and the bank's quotation is basically "the same price of foreign exchange and banknotes", it has a great impact on investors' profits.

Summarize:

In domestic foreign exchange speculation, the real trading provided by major banks is completely legal. For details, please check the official website of the Administration of Foreign Exchange: http://www.safe.gov.cn/

foreign exchange margin trading

Since there is no domestic development of foreign exchange margin trading, investors participate in foreign exchange margin trading.

Foreign exchange margin trading is commonly referred to as speculation in foreign exchange, also known as false trading, margin trading, is that investors use equity funds as a guarantee, from the bank or broker to provide financing to amplify foreign exchange transactions, that is, to amplify investors' trading funds.

The size of the financing ratio is determined by the bank and the broker. The larger the financing ratio, the smaller the funds the customer needs to pay. For example, a standard lot in the market is 100,000 US dollars. If there is no leverage, the customer must invest 100,000 US dollars to buy and sell a currency. If the leverage provided by the broker is 20 times, the buyer and seller only need to invest 5,000 US dollars. If the leverage is 100 times, the buyer and seller need to invest 1,000 US dollars.

Features of foreign exchange margin

1. Huge trading volume, daily trading volume 6 trillion US dollars, 30 times that of the global stock market

2. A fair trading market where no bookmaker can control

3. Foreign exchange trading is the most flexible, fair, and just of all financial products

4. Low investment cost, less than 10% of actual investment

5. Two-way trading and investment, both ups and downs have the opportunity to profit

6. Risk is controllable, and limit and stop loss points can be preset

7. Flexible funds can be withdrawn at any time

8. Global 24-hour trading from Monday to Friday offers many profit opportunities

9. Low spread, 2-5 points, no handling fee

10. Fairness, transparency, and open access to all market data and news

11. Transactions are fast, and in most cases they are completed in real time

Although the domestic foreign exchange margin business has not yet been opened, it is not illegal to speculate on foreign exchange, and the state has not intervened in individual foreign exchange speculation, but foreign exchange speculation must choose a formal platform for cooperation! How to judge whether a foreign exchange company is reliable!

Therefore, if Chinese citizens want to speculate in foreign exchange, they can choose the real foreign exchange trading provided by major domestic commercial banks or the foreign exchange margin business provided by foreign foreign exchange brokers according to their own needs.

foreign exchange marketIt is such a market that once you understand it, you never want to leave again. In China, it is a blessing for investors and a blessing for financial practitioners.