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 What is foreign exchange transaction?

 

Foreign exchange transaction, also known as "FOREX" or "FX", is a foreign exchange transaction method in which a foreign currency is converted into another foreign currency, namely, a currency in one currency pair is bought and another currency is sold. The exchange rate of various currencies on the international market fluctuates frequently and trades in the form of currency, such as EUR into USD or USD into JPY. Unlike stocks or futures, no trading center exists in foreign exchange transactions, and all foreign exchange transactions are conducted by telephone or electronic network.

 

Advantages of the EML to have foreign exchange transaction

 

 

What is the risk of foreign exchange transactions?

 

Any OTC transaction has certain risks, including (but not limited to) leverage, creditworthiness, limited legal protection, and market turbulence that may significantly affect the price or volume of currency. Leverage ratio has a two-way amplification, on the one hand it increases the amount of the investor's transaction, and double the investment income; on the other hand, it also increases the risk, so that investors may face greater losses. So be sure to carefully consider your investment objectives, experience levels and risk tolerance before deciding to participate in foreign exchange transactions. Please do not rush investment if you cannot bear the loss.