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A question about foreign exchange futures ~

2024-09-23 02:12
An investor in the United States expected the appreciation of the Euros and sold 10 Euros futures contracts for June delivery at the price of 1,1825 USD/USD on the MME. After that, he bought and closed the position at the exchange rate of 1.2430. How much did the investor make or lose? (Excluding transaction fees and other fees) The correct answer was a loss of $75,625. How did you calculate it?
1 answer
2024-09-23 04:30

Foreign exchange futures were a type of financial derivative that allowed investors to obtain a certain amount of foreign exchange income at a certain point in the future by constructing a contract on the foreign exchange price. Below was the answer to this question: If a person bought 10,000 USD/Jpy foreign exchange futures on January 1st, 2023, he could sell these foreign exchange futures at the same price on March 1st, 2023 and earn a certain profit. This profit could come from changes in foreign exchange rates or from the investor's trading skills and risk management ability.

A topic about foreign exchange futures arbitration (online, etc.)

1 answer
2024-09-23 02:29

In the foreign exchange futures market, the term "arbitration" refers to the use of the exchange rate difference between different currencies to buy and sell opposite contracts in two futures markets at the same time in the hope of obtaining profits. Suppose that there are two foreign exchange futures markets, one dominated by US dollars and the other dominated by euros. The current exchange rate between the US dollar and the Euros was 128, but at some point it could become 132. If someone wanted to buy and sell contracts on both futures markets at the same time in the hope of gaining a change in the exchange rate, he could take the following steps: ``` A. The cost of buying a contract that was mainly in US dollars was 1000 US dollars. B. The cost of selling a Euro-based contract is 1000 Euros. C. Wait for the exchange rate to change from 128 to 132. D. The cost of buying a contract that was mainly in US dollars was 1280 US dollars. E. The cost of selling a Euro-based contract was 1280 Euros. ``` In this process, the person would gain 280 dollars because the difference in his cost in the two futures markets was 1000 dollars +1280 dollars =2280 dollars, and his profit was 1280 dollars-1000 dollars =280 dollars. The principle of this kind of arbitration method was to buy and sell opposite contracts in two futures markets at the same time so that the difference in the cost of the two contracts was equal to the change in the exchange rate. If the exchange rate changes sufficiently, this person will gain enough profit to realize the arbitration.

Is it easier to do foreign exchange or stock futures?

1 answer
2024-09-21 06:25

Foreign exchange, stocks, futures, etc. are all investment tools in the financial market. The choice depends on individual investment goals, risk preferences, market conditions and other factors. Foreign exchange is a currency exchange market where investors can earn money from changes in the exchange rate by buying or selling a currency. Foreign exchange investment has the characteristics of high risk and high return. Because the change of exchange rate may bring huge profits, but it may also lead to huge losses. A stock was a type of security that represented the ownership of a company. By buying stocks, investors could obtain the company's profits and development opportunities. A stock investment has the characteristics of medium risk and medium return because the stock price fluctuates greatly but the company's income and prospects are relatively stable. A futures is a derivative that represents a decision that the buyer and seller should make at a certain point in the future. Future trading had the characteristics of high risk and high return because of the large price fluctuations, but there was also a high risk of leverage. In summary, the investment characteristics of foreign exchange, stocks, and futures are different. The investor should make a choice based on his own investment objectives, risk appetite, market conditions, and other factors. It is recommended that novice investors understand the relevant investment knowledge and risks before making any investment.

Compared to stocks and futures, what were the advantages of foreign exchange?

1 answer
2024-09-21 06:29

Compared to stocks and futures, the advantages of foreign exchange were mainly manifested in the following aspects: 1. Higher mobility: Forex is a commodity that can be traded immediately on the market. In contrast, stocks and futures took longer to trade and needed to be traded at an exchange or broker. Lower risk: The risk of foreign exchange is usually lower than that of stocks and futures. Because the price of foreign exchange is affected by many factors, including the global economic situation, political events, natural disasters, etc., it is relatively less volatile. 3. More flexible: Forex can be bought and sold at any time, so it can better adapt to market changes. In contrast, the prices of stocks and futures are usually affected by factors such as the performance of companies and political events in a specific period of time. 4. Two-way trading: Foreign exchange can be traded in both directions, which means that you can buy and sell two currencies. This meant that investors could reverse the market conditions to protect their own investment. Lower fees: Compared to stocks and futures, foreign exchange transactions usually have lower fees. Brokers usually do not charge any commission or transaction fees from stock or futures investors. In general, foreign exchange was a more flexible, less risky, more liquid, and lower two-way transaction costs commodity. Therefore, it was more suitable for investors who wanted to spread risk and seek higher returns.

The difference between stock, futures, and foreign exchange trading participants?

1 answer
2024-09-21 06:14

The differences between stock, futures, and foreign exchange trading participants were as follows: 1. A stock participant: A stock participant refers to the purchase and holding of stocks in the stock market. A stock was a type of security that represented all the rights and interests of a company. By buying stocks, investors get a potential share of the company's profits. The price of stocks usually fluctuated with the changes in market supply and demand. 2. A futures participant: A futures participant refers to the person who buys and holds a futures contract. A futures is a derivative that can be used to buy or sell a commodity or asset at a certain point in the future. Trading futures usually required a deposit to ensure that the contract was fulfilled. 3. Forex trading participants: Forex trading participants refer to people who buy or sell currency in the foreign exchange market. The foreign exchange market is a global trading market where the exchange rates between countries change frequently. Forex trading usually requires leverage fees and transaction fees, as well as understanding the risks of exchange rate fluctuations. Trading stocks, futures, and foreign exchange are all financial investment tools, but the risks and returns of the participants are different. An investor should understand the advantages and disadvantages of each investment tool and choose an investment tool that suits them according to their investment objectives and risk tolerance.

What are the differences and similarities between foreign exchange and stock futures?

1 answer
2024-09-11 03:35

Foreign exchange, stocks, and futures were three different financial investment products. The difference was: Trading objects are different: foreign exchange is a currency pair, including the US dollar, Euros, Japanese Yen, British Pounds, etc.; stocks are shares that represent a part of the ownership of a company; futures are contracts that specify the purchase or sale of a commodity or asset at a specific price at a certain time in the future. 2. Different trading hours: The trading hours of foreign exchange are in line with the international market, including day and night; the trading hours of stocks and futures depend on the exchange of the country or region. 3. Different risks: foreign exchange is riskier because the exchange rate of the currency fluctuates more; stocks and futures have relatively lower risks but also have fluctuations and uncertainties. The similarities were: They were all financial products that could be used for investment and income. They are all regulated and require investors to have certain financial knowledge and risk awareness. 3. They all have a certain degree of fluctuation and uncertainty that investors need to treat with caution.

What was the difference between foreign exchange, futures, and stocks? Which of the three was the least risky?

1 answer
2024-09-21 06:26

Forex, futures, and stocks are all financial products, but their risks and trading methods are different. Foreign exchange refers to the exchange of one currency for another, usually used for international trade and investment. The risk of foreign exchange mainly comes from market fluctuations and changes in exchange rates because changes in exchange rates may lead to changes in the value of assets. Foreign exchange trading methods include buying and selling. Buying has lower risk but lower returns, while selling has higher risk but higher returns. A futures contract is a contract to buy or sell a commodity or service at a specific price at a certain time in the future. The risk of futures mainly comes from market fluctuations and fluctuations in the maturity price because the price of futures is usually affected by the relationship between supply and demand in the market. The trading methods of futures include buying and selling. Selling has lower risk but lower returns, while buying has higher risk but higher returns. A stock was a proof of ownership that represented a person's ownership of a certain amount of a company. The risk of stocks mainly comes from market fluctuations and company earnings because stock prices are usually affected by the supply and demand of the market. The trading methods of stocks include buying and selling. Buying has lower risk but lower returns, while selling has higher risk but higher returns. Among the three, stocks with lower risk may be relative to foreign exchange and futures. Although the returns of stocks are relatively low, the risks are also low because the stock market is relatively stable and the company's earnings are relatively stable. The futures and foreign exchange markets were riskier and more volatile, so their returns were relatively higher.

Would the seniors who have done foreign exchange and futures please talk about the difference between these two and stocks?

1 answer
2024-09-11 03:48

The differences between foreign exchange, futures, and stocks were as follows: 1. Different trading time: The trading time of foreign exchange and futures is instantaneous while the trading time of stocks is fixed. This means that you can buy and sell at any time in foreign exchange and futures, while in stocks you need to complete the work within a specified time. 2. Different risks: Foreign exchange and futures are riskier because they involve more complex markets and more volatile price changes. In contrast, stocks are less risky because they are affected by company earnings and macro economic factors. 3. Trading methods are different: Forex and futures can be traded through Market Makers, which means that they can provide market mobility and earn commission fees. The stock can also be traded through an exchange, but it usually needs to be traded through a security company. 4. Different market size: The size and mobility of the foreign exchange market are larger than the futures market, but the market size of the futures market cannot be ignored. The foreign exchange market is usually participated by global investors, while the futures market is popular with domestic investors. Forex, futures, and stocks are all financial derivative products, but their trading methods and risk characteristics are different. The investors should carefully study and choose the investment products that suit them in order to obtain a better return on investment.

Which books are about fundamental analysis of foreign exchange?

1 answer
2024-09-10 20:49

Fundamental analysis of foreign exchange was an investment analysis method that predicted exchange rate movements by studying international monetary relations and market supply and demand. The following are some books on fundamental analysis of foreign exchange: 1 Foreign Exchange Market and Money Theory (Foreign Exchange Market and Money Theory): The author is John Bogel, one of the classic works in the field of foreign exchange market. He introduced the basic theory of foreign exchange market and currency theory, including the formation and influencing factors of exchange rate. 2."Money War: China's Rise and Changes in the Global Financial Landscape"(Money War: China's Rise and Changes in the Global Financial Landscape): Author Fang Yuan. This is a book that talks about the impact of China's rise on global monetary relations. It also includes the analysis of foreign exchange fundamentals. "Exchange Rate Combat"(Exchange Rate Combat): The author introduced the methods and techniques of fundamental analysis of foreign exchange to Chen Jie and demonstrated how to invest in foreign exchange through practical cases. 4 Financial Psychology (Financial Psychology): The author is Richard Stockman. This book explored the psychology and thinking process of investors, including their views on exchange rate fluctuations and decision-making process. It is also helpful for the fundamental analysis of foreign exchange. 5 "Foreign exchange market technical analysis"(foreign exchange market technical analysis): The author is Robert Curry. This book introduced the methods and techniques of technical analysis of the foreign exchange market, including the shape and indicators of the exchange rate trend, which can help investors better analyze the exchange rate trend.

Where can I buy the original edition of the book from loss to profit: A summary of the actual practice of stocks, futures, and foreign exchange?

1 answer
2024-09-08 13:58

The original copy of this book could be purchased from large local bookstores, online bookstores, or through official authorized dealers. It is recommended to understand the pricing and discount information of the book before buying it in order to make the best choice. In addition, you can also consider searching the electronic version of the book on the Internet. Although the quality of the electronic version may not be as good as the original book, it can also meet the needs in some cases.

Can you recommend some novels about foreign exchange?

1 answer
2024-09-09 19:30

😋I recommend the following novels to you, hoping they will meet your needs: - [I Build a God Dynasty of Kismet in the Myriad Worlds]: A transmigrator established his own God Dynasty of Kismet and rose among the myriad races in the universe. Recruit soldiers, seize territory, and become an overlord. Game-game novels from another world, there was an exchange element. - [Starting from a Small Lord: A village lord obtains historical figures and armies through the equal exchange system, participating in the hegemony of the Pilgrimage Continent.] Fantasy-Dynasty War, there was an exchange element. - "Ten Thousand Clans Conquest, Summon the Bad Commander at the Beginning": A King with a different surname holds 300,000 troops and summons all kinds of Chinese heroes to rise in the Hundred Clans Conquest. Fantasy-Dynasty War, there was an exchange element. I hope you like this fairy's recommendation. Muah ~😗

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