Understanding Forex

Why Forex?

Why Leizan Capital choose Forex as its key trading vehicle?

Foreign exchange abbreviation FX (Forex) refers to a means of payment expressed in foreign currencies, which can be used for international settlement. There are more than 60 currency combinations worldwide such as the British pound, the US dollar, the euro, the Canadian dollar, the Australian dollar, and the Hong Kong dollar.

Like stocks, foreign exchange can be used for trading, and the foreign exchange market also fluctuates, but the difference is:

• The trading volume of the foreign exchange market is much higher than that of the stock market.

• Stocks are regional, foreign exchange is global.

Why Forex?

Characteristics of the Forex Industry

T+0 Transaction, 24/5 Globally Monday To Friday, 24 Hours A Day Nonstop Transaction

Foreign Exchange Can Be Traded In Both Directions.

Profit Is Not Limited By Market Conditions

As Long As There Are Two Different Currencies, Foreign Exchange Transactions Can Be Constituted.

Risk Is Controllable, Stop Loss And Limit Price Points Can Be Pre-set.

Large Trading Volume, Global Open Data Transparency

Funfact

The Unlimited Potential of Foreign Exchange

The New York Stock Exchange daily trading volume is 25 billion USD.

The global foreign exchange market capital pool is more than 6 trillion US dollars.

Daily foreign exchange trading volume is 240 times that of the New York Stock Exchange.

1 B
Trading Volume in NYSE
1 x
of FX over NYSE Volume
1 T
Market Capital Pool
Why Forex?

Types of Foreign Exchange Transactions

Traditional Foreign Exchange

Use cash to exchange foreign exchange at a bank or money changer.

Long-term Foreign Exchange

Long-term position holding through banks or exchanges. After a certain level of profitability, the position will be closed.

Paired Exchange Transaction

Matching transactions through international traffic providers.

What is Paired Exchange Transaction?

Paired Exchange Transactions, also called Digital Options, or Fixed Return Options (FROs), which started operating in mid-2008.

It is simple and easy to understand, and is very suitable for novices or experienced veterans.

The essence of Paired Exchange Trading is to predict the direction of foreign exchange, commodity, index, and stock index prices before the specified expiry. When investing in paired exchange transactions, you are not buying or owning assets but predicting the direction of assets. There are only two results, and asset prices have nothing to do with options. You only need to be in the right direction for your trade to be correct.

Global Foreign Exchange Trading Capital Flow

The global foreign exchange fund pool is as high as 6 triillion US dollars. It is not only retail investors who participate in foreign exchange transactions. In fact, retail accounts only account for a small part. The vast majority of participants in the foreign exchange market are banks, governments, and state agencies.

The funds traded by foreign exchange traders flow into primary banks and flow providers through various trading platforms to wait for matching, and then flow into the global foreign exchange trading capital pool together, forming a huge global foreign exchange market.