Category: Money Tips Date: 2007-03-23
The stock market for the majority of my friends, is no longer a stranger. Many of my friends may be contaminated by the stock market for many years, the stock market has its own deep feelings. Matter whether sad, joy matter whether the stock market anyway, talking about the mode of operation, characteristics, can be very familiar, could be his right.
The foreign exchange market for the majority of friends, it is an entirely new market. Domestic form Chao Hui heat was only the last year or two things. From the investor's number of terms, is still far from comparable with the domestic stock market. However, trading volume point of view, the foreign exchange market is larger than the stock market. With China's accession to WTO, foreign investment has become a new hot spot for investment, more and more investors began to show interest in Chao Hui.
The stock market and foreign exchange markets, after all, is not the same area, there are many differences. Before the stock market into foreign exchange markets, we need to clear some of the issues, or will come up with some jokes or even suffer unnecessary losses. I have to tell you two examples.
Case 1: "want the non-said," I have a very good friends, he graduated from China's well-known institutions of higher learning, MBA degree, specializing in macroeconomics. One day, I watch the forum, when suddenly he was Posted in the forum "to see 110 yen within a year," we do not know at that time, see this topic, I am very curious to see if his view, therefore, I have carefully read his article, After reading it, I am very confused! His post from his professional perspective, a detailed analysis of the Japanese economy, reasoned description of the yen will be devalued, but it was about the exchange rate is 125.00 yen depreciation of how it will be towards the 110? Communication between he and I discovered after he had committed the offense of a very low-level error: do not know if foreign exchange markets there is also price differences between the law to engage in the direction of backward.
In fact, such an error for those who know nothing about currency markets in order to apply the foreign exchange markets of the friends, the stock market is a very common phenomenon. Because of my work, I often see the first time the stock market over a number of friends in the face of yen technical chart a clear upward trend in K-line exclaimed: "What a good momentum in yen ah, hurry to buy."
Case 2: "make money from the bank," Once I went to other banks to do business, see the counter staff is working with a customer dispute, so, I am curious to ask what had happened. Bank staff told me that customers who had just bought the yen, and then immediately sold, finished off balance and found lost money, and very angry, and counter staff in the theory anyway, I put aside that customer asked: "Lao Ge, why do not you have just bought the yen wait and see, why should immediately sell it?", he replied: "You see, the bank bought the yen prices, selling price and I do not can not lose making money from the bank do? However, the deal finished, I had little money on the account, and you say that they are not a fraud? "listening, I am laughing, to send him a sentence:" Old brother, you remember, the banks are smart than you and I will never do lose money trading, others reported U.S. dollar price of the bank's own bid price and selling price, without any problems, is that you engage in counter, and no good of the bid-ask spread. "
From a comparative point of view we look at the stock market and foreign exchange markets.
1, closed the stock market and an open foreign exchange market
9:30 every morning, 10 million pairs of eyes watching the screen, waiting for the stock's opening price, 10 million head start running fast to calculate profit and loss with their own floating, 3:00 pm, the day the fighting ended, 10 million hanging The heart has finally landed and began to inventory or rest, this is the stock market itself.
The stock market is a closed market, there is a fixed opening time and closing time, there is a fixed place of trading, there is a fixed clearing center, the same stocks in the same time the transaction is the same price.
The foreign exchange market is different, it is an open market. Although we have seen on television in a busy foreign exchange trading scene, it is easy to equate the foreign exchange market and stock markets, but in fact, completely not the case.
Visible foreign exchange transactions in the foreign exchange market as a whole is only a very insignificant part. Most transactions are in the OTC, traders by means of modern means of communication with each other transactions. This transaction is entirely a matter between the two counterparties, we just follow a convention only, not subject to any regulations, the system constraints. Foreign exchange market is not one and the same rules, no special clearing agencies, there is no fixed closing time of opening. The so-called opening price and closing price was only a convention in New York market, we shall prevail, no people who can not be provided after the close of trading. As long as you can find a counterparty, you can trade, but the transaction price will not be reflected in the information the system.
The foreign exchange market from 4:00 am Beijing time Monday to Saturday began continuous operation of 4:00 am. There is often a friend asked me: "Now the price is what the market price?" I have often baffled by this issue. Because the price of the foreign exchange market is only the level of activity of the points, there is no market distinction. In our analysis of market professionals when listening to often referred to "the Asian trading session ... ..., the European trading hours ... ...", which refers to the price in a time situation. It does not mean that this price is from an exchange price. Asian trading hours, is likely to have many from Europe and the Americas, traders are trading, and their sale prices will be reflected in the pricing system. In other words, we usually see is not the price of the exchange offer, but there are some dealers offer. The quoter often change. Citibank is now the next one is perhaps the Bank of China, or a foreign exchange dealer. This offer is only representative of the quotation will of the parties, reflecting the current market exchange rate levels, rather than a standard. You what the actual transaction price, depending on your choice of a counterparty willing to give you what price. If you are not satisfied, you can choose another opponent, just as you can in the four major state-owned banks and other commercial banks to choose between the same.
In the stock market, the exchange involved the identity of traders, there are strict limits to require admission transaction must have a seat on the exchange. Retail investors to trade only through the agency, to submit to them to pay a certain commission.
In the foreign exchange market, there is no limit for the traders. As long as you like, you can be traded. You do not have to pay a commission to any person or institution, you are direct participants in the market. Only because of the relationship between the amount of funds, your transaction will not be reflected in the price of information the system. Because you are not a major market participants and counterparties you do not have room for bargaining. In the foreign exchange market, traders are the main countries of central banks, commercial banks, foreign exchange brokers, large funds, large multinational corporations. Their sale prices on the market have some influence. And the general investors are banks or foreign exchange brokers to trade on the international market price is not what kind of influence. This is very different and the stock market.
The stock market, everyone to pull together the way of auction, through a unified matching of transactions. So, you can price the market price of instant impact. If you wish, you can make a stock appear in the daily limit. In the foreign exchange market is not, it does not match Execution System. Investors in general do not take the initiative to offer qualifications can only passively accept or reject the transaction.
In the stock market, insider information become the object of pursuit. Mastered the insider information, they won the first money-making opportunity than others. In the foreign exchange market, insider trading is basically non-existent. Because this is a completely open market, the dynamics of the central bank, monetary policy, economic data is completely transparent. The amount of money regardless of your size, you can have equal access to these messages. Only because of the equipment and deal with the core distance, I think you will have access to these messages have the time, but this gap is also not sufficient to influence investment decisions is crucial.
In the stock market, funds and agencies, or what "Heizhuang" can create messages, you can use their money to make a perfect technical charts, price-fixing, but the foreign exchange market were almost impossible. 4 trillion U.S. dollars a day the face of global trading volume in any one organization, including the strength of a country are all petty. Their transactions can not be produced on the direction of the exchange rate impact. Many people are financial predators, "Soros" very admirable, that he can influence a currency trend. In fact, he is not to manipulate the amount of money the exchange rate, but he was good at discovering the many factors that support the exchange rate of defects, and to enlarge the exchange rate from the weakest link in supporting start giving blow in the market to form a domino effect, the exchange rate towards its own favorable direction. Even so, Soros's actions also can not be called to manipulate the exchange rate. Because of their actions, in a very short period of time, it was found in the market and widely disseminated. Any investor can be the basis of this information to make their own investment decisions. This is shady stock for a long time after the event was only different in essence from exposure. Therefore, the foreign exchange market, compared with the stock market, which is a more open market, the market more transparent, more fair market. Investors are making money with their own wisdom, rather than luck. Second, currency exchange securities and currency exchange currency
In the stock market, people are buying and selling shares of such rights contract is based on currency exchange transactions in securities, such securities may be a daughter of paper, it could be a pile of paper. This is the key to the stock market to attract everyone. It is full of opportunities and fraught with pitfalls. If you have poor luck, in the hands of the stock is likely to become the ST, PT, or even delisted.
In the foreign exchange market, we are buying and selling currency, is a "barter" process. The current international foreign exchange market can be freely traded currency, the overwhelming majority of relatively stable economic and political currency of the country. There is no question "ST yen", "PT pounds" or similar phenomena. Is for the average investor, as long as the difference between the sale of the timing is not quite bought a currency, after the depth even if they are stuck with a long-term, generally have some sort of relief profitable opportunities. Least you will have the opportunity to reduce losses. Many of my friends in the euro after the release of the location of the 1:1 buying euros, stuck three years later, is not able to obtain very substantial income than that? In the foreign exchange market, "such as a three-year leap the twelfth lunar month," the situation is more common. In the stock market, it is more difficult for 100 yuan Yiankeji bought the stock did not know there were still 100 years, there is no chance to get out of trouble.
Because the stock market is based on currency exchange securities, so there is no question of price, be sure they are an X share price means the value of Y dollars. However, in the foreign exchange market is different, and we are all currencies, there is one who is right who carried out the issue price. Traditionally, the economic power are expressed in national currencies like the other country's currency. Earlier, the United Kingdom is the most powerful capitalist countries, pounds belonging to hard currency, so formed as to how many U.S. dollars is equal to the £ 1 price tag method, Australia, New Zealand, the early years were a British colony and, therefore, follows the price of £ method of forming an Australian, one New Zealand dollar (NZD) denominated in U.S. dollars is equal to the number of ways. Later, as the U.S. economy strong, the United States gradually replaced the United Kingdom in the world of capitalist power in the traditional status of the dollar as the global circulation of hard currency. As a result, formed as one U.S. dollars is equal to the number of Japanese Yen, Swiss franc, Canadian dollar price method. After the euro, showing a gesture to compete with the U.S. dollar, but also chose the same price method and the British pound.
The foreign exchange market price method is very important, which determines the numerical size of the sale of investors in accordance with directions when using jargon, foreign exchange there are two pricing methods: direct and indirect quotation price. Price examples:
Direct Quotation USD / JPY = 134.56/61 USD / HKD = 7.7940/50, USD / CHF = 1.6840/45.
Indirect quotation EUR / USD = 0.8750/55, GBP / USD = 1.4143/50, AUD / USD = 0.5102/09
Were two examples mentioned above, is because they simply can not clear the foreign exchange market has brought the issue price method jokes and suffered a loss.
France will bid for beginners often hangs up. After all, the professional academic term end up saying more mouthful. Popular point that the direct price law is the direct use of U.S. dollars that were denominated in currencies other methods. This price law, the value of the greater, indicating the U.S. dollar was the currency that corresponds to the less valuable, and the stock market the price is reversed. Indirect price method is to use other currencies expressed in U.S. dollars of the price tag method. This price law, the value of the greater, indicating the currency more valuable, and the stock market price is the same. Third, the analysis of the stock market entirely useless for magic in the foreign exchange
"Volume and Price with the" is a technical analysis of securities and futures market, a magic weapon. In these markets, any price change in direction if not impossible with the volume set. Therefore, when technical analysis, trading volume as an important factor. If a person is in analyzing the trend of the yen when you talked at length about how the volume and price with the perfect target with how perfect, and then encouraged you to conduct transactions, you must fight for his proposal by a huge discount. No matter how proficient his technical analysis, he is just a half a leg had just stepped into the foreign exchange market, the novice, to the foreign exchange market are not familiar with. Why? Because "do not look at the amount of the foreign exchange market" is exchange analysis of the most basic common sense.
So, why "the foreign exchange market do not look at quantity"?
The answer is: the amount of the foreign exchange market can not see.
From the above mentioned characteristics of the foreign exchange market can be seen that the foreign exchange market is the invisible market, open market. It is not like other markets, there are centralized matching system, a closed market in the run. Its trade is free, loose, there is no one universal system of deal-maker. Thus, in a certain price the transaction volume is timely and accurate statistical means. Moreover, the reliance on modern scientific and technological means, even if there is a way to accurate statistics on trading volume, a volume relative to the price of 4 trillion U.S. dollars a day trading volume is negligible, research and analysis of the data meaningless. However, in some analysis software, I also saw a volume of data, which is also noted that many friends, and then the volume is there, come from?
Different software vendors in different data sources, therefore, the meaning of the data volume is different, and some represent the original data provider turnover sum (turnover), some of the price of transactions on behalf of a certain frequency (turnover amount in mind), regardless of what it represents, not a summary of all transaction data, therefore, can not represent the actual turnover of the market situation, ultimately there is no reference value.
Should be emphasized that, in addition to "quantity price with the" It's 1:00, the stock of other technical analysis methods can be used to analyze the foreign exchange market. Expert technical analysis of stock market is destined to become expert technical analysis of currency markets. Because the objective laws of foreign exchange relative to the stock market stronger, a technical analyst to show their talent's paradise.
