First of all, potential investors should have basic knowledge of foreign exchange investment. Investors who can afford the investment and are able to understand the content of economy, law and risk in the trade, are qualified due to the characteristic of speculation and investment risk of foreign exchange. In addition, the identification of investors must be authorized by the supervisor organization due to the increasing global concern of money laundry.
If you are qualified, we sincerely invite you to join the MCM investment group. For further details for MCM products, please fell free to contact with us.

 

Foreign exchange is an investment tool for making profit through the price difference of exchange rate and interest rate by various derivative financial tools in the trade of currency conversion.
The total amount of foreign exchange investment has far exceeded the total amount invested in the stock market in the world. In recent years, the foreign exchange market has been growing rapidly and the individual investment of foreign exchange is equal to the individual investment in the stock market in the major European countries. As can be seen, the investment in the foreign exchange market and the profit margin are increasing year by year. For example, 1% up or down in the foreign exchange market means the turnover of US$ 30 billion on the daily basis of US$ 3 trillion trading in the global foreign exchange market.
 

 

The foreign exchange market is a fair and challenging market for investment. The foreign exchange trade is based on the relative value between two different currencies, which will not be affected, for example, by the fluctuation in the bull or bear stock market. There is no any country can independently manipulate the foreign exchange market and there is also no any insider information. The foreign exchange market is more open and bigger than the stock market, and provides more active transactions than the futures market. The global foreign exchange markets run for 24 hours, double the operation time of the stock market, which means an easier opportunity to make money if given the stable operation.
The trade in the foreign exchange market will not change the total value of the market, but only conducts the re-arrangement of investment in the trading part. In the stock market, the up or down of one single stock will affect the total value of the stock market, meaning the total value of the stock market would be possibly shrunk. In other word, the variation of exchange rate represents the different value from that of stock price.

 

Different political and economic factor will affect the value of currencies, but the interest rate, inflation rate and political stability are the most important among them. Besides, the government will try to influence the value of currencies by participating the foreign exchange trade, such as dumping the country’s currency to depreciate its currency or purchasing the country’s currency to appreciate its currency, called the interruption policy of central bank. Any factor above-mentioned or large-sum market order will cause large fluctuation of currency value. However, no one can “manipulate” the foreign exchange market for a long time in the trading time in the consideration of the scale and trading amount of the foreign exchange market.

 

The foreign exchange market was led by the different countries’ central bank, commercial and investment banks, which is also called the market of banks. Nevertheless, the number of participants is increasing, including large multinational companies, administrators of international currency, registered traders, managers of international fund, future and option traders, and speculators.