What does the fund manager tell you about foreign exchange trading?

I believe you will see in movies about Wall Street that many fund managers come from foreign exchange trading experience, so what is foreign exchange trading after all? The answer is actually very simple, that is, to trade "money".

All foreign exchange transactions are not buying things in themselves, so this kind of family will confuse people's understanding of the essence of foreign exchange transactions.

Taking the act of buying currency as buying shares in a specific country is a bit like buying shares in a company. The price of a currency directly reflects the market's judgment on the current and future economic conditions of the country to which the currency belongs.

When you buy dollars, you are investing "a share" in the U.S. economy. You're betting that the U.S. economy will do well in the future, and even get better over time. Once you sell those "shares" to the market, and the market is doing what you expect, other investors will be willing to buy it at a higher price, and you can profit from it now.

As for the foreign exchange currency pairs we trade, generally speaking, the exchange rate between one country's currency and other countries' currencies reflects the comparison between the country's economic situation and other countries' economic conditions, and changes in the exchange rate are reflected by the strength of the comparison, for example For the U.S.-Japan currency pair, the strength of the U.S. economic development is better than that of Japan, so the exchange rate of the U.S.-Japan currency pair will rise, and vice versa, it will fall.

The above is the "Fund Manager Tells You What is Forex Trading?" shared by the editor of MEX Group. "Knowledge, the basic concepts and characteristics of foreign exchange trading introduced by the MEX Group foreign exchange trading platform for investors, hoping to help foreign exchange investors.