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Regarding the position reporting system of the click365 platform, the platform implements separate management of position reports for foreign exchange investment transactions and stock index transactions.
This approach enables investors to obtain position reports corresponding to the respective transaction types when conducting these two different types of transactions on the platform, thereby clearly grasping the position status of each transaction.
In the field of foreign exchange investment trading, the platform will display information such as the investor's held currency pairs and related transaction sizes. For example, it clearly presents the position status of various currency pairs held by investors, such as EUR/USD, GBP/USD, USD/JPY, etc., and pays special attention to and reports on the USD/JPY currency pair with a large trading volume. In addition, the position report is not only for individual investors. The platform may provide some market-level position information based on overall transaction data, such as the overall position size of certain currency pairs or indexes, and the position tendencies of investors, to help investors understand the overall market situation and the position of their own transactions in the market.
In the actual operation process of foreign exchange investment trading, implementing stop-loss is indeed an extremely challenging task.
The fundamental reason lies in the inherent conflict between stop-loss behavior and human nature. In the field of foreign exchange trading, those who choose to hold on and not implement stop-loss can usually be divided into two different types. One category is small foreign exchange investment traders with relatively less principal. For them, due to their relatively limited disposable funds, each loss appears particularly heavy. Therefore, they often choose to endure risks rather than implementing stop-loss because they are reluctant to do so. When facing possible losses, their hearts are filled with entanglements and reluctance. It is difficult for them to take decisive stop-loss measures. Instead, they hope that the market will turn around to avoid actual losses. The other category is large foreign exchange investment traders with extremely strong principal and extremely smooth financing channels. With their powerful financial strength and convenient financing channels, even when facing an unfavorable situation in foreign exchange investment trading, they will not easily choose to implement stop-loss. Because they have a continuous supply of principal as a backing, they firmly believe that as long as they persevere, the market trend will eventually develop in a direction favorable to them, so that they can exit after achieving profits. In their view, temporary losses are not horrible. As long as there is sufficient financial support, there is an opportunity to turn the situation around and obtain substantial returns.
In the field of foreign exchange investment and trading, there are some undesirable phenomena worthy of attention.
Some foreign exchange investment trading platform providers, without the consent of traders and without justifiable reasons, arbitrarily change the leverage in the background. Such behavior often occurs during periods of light daily trading when market activity is low and traders' vigilance is relatively weak. At the same time, it also occurs from time to time at the critical juncture before the market opens on Monday. For small-fund traders, they are in a relatively weak position. Encountering such malicious behavior by platform providers without any awareness can easily lead to an instant margin call. This behavior is essentially malicious plundering and seriously violates the legitimate rights and interests of small-fund traders. It not only causes small-fund traders to suffer huge economic losses but also brings a heavy blow to them psychologically. At the same time, this behavior greatly undermines the fairness, impartiality, and orderliness of the foreign exchange investment and trading market and seriously impacts the trust foundation of the entire foreign exchange investment and trading market, having an extremely negative impact on the healthy development of the entire foreign exchange investment and trading industry.
In long-term investment, there are some subtle differences between spot foreign exchange and foreign exchange futures.
Spot foreign exchange can use high leverage, while foreign exchange futures generally do not use leverage or have a very low leverage level. Spot foreign exchange has an overnight interest rate differential, while foreign exchange futures do not have this situation. Taking the futures report of Japan's click365 as an example, it is essentially spot foreign exchange. Japan announces it in the name of futures, and this spot has an overnight interest rate differential. Currently, it directly copies the Western term "swap point". If it is called "overnight interest rate differential", it may be easier to understand. Spot foreign exchange is usually traded in pairs. Most foreign exchange futures are traded individually, but some are traded in pairs. There is no quantity limit for spot foreign exchange, while there are clear quantity regulations per lot for foreign exchange futures. Spot foreign exchange has no restriction on the delivery date, while foreign exchange futures have a limit on the delivery date. In the United Kingdom, spot foreign exchange trading is called spread trading and is regarded as a form of gambling and can enjoy tax exemption according to specific circumstances. However, spot foreign exchange may need to pay taxes in Japan.
The ranking of major world stock indexes
The ranking of major world stock indexes is as follows: Nasdaq 100 Index, S&P 500 Index, Hang Seng Index, FTSE 100 Index, Dow Jones Industrial Average Index, DAX 30 Index, Russell 2000, CAC 40, Euro Stoxx 50 Index, and Sao Paulo Index.
When choosing investment and trading indexes, the above active order can be referred to. Generally speaking, indexes lacking liquidity are relatively low in investment and trading value. It should be noted that indexes are closely related to stocks. Mainstream countries usually take certain intervention measures against the downward trend of stocks. This is because poor performance in the stock market often reflects that the economic situation is not optimistic.
In foreign exchange investment and trading, operations can still be carried out even without indicators.
In the absence of technical analysis indicators, it is completely feasible to successfully conduct foreign exchange trading. For the information provided by the trading platform, everyone's way of interpreting and applying is unique. If technical analysis indicators do not play any role for investors, then these indicators can be chosen not to be used. Others should not dominate an investor's trading settings, and investors should not blindly follow others' opinions. The core goal is to determine a trading system that suits one's own situation.
In foreign exchange investment trading, the SSI (Speculative Sentiment Index) reverse indicator can be cleverly used.
The SSI sentiment indicator is the abbreviation of Speculative Sentiment Index. In the field of foreign exchange trading, if most traders adopt a long strategy, then selling operations should be chosen at this time; on the contrary, if most traders are short, then buying should be considered. This trading strategy can be explained from the level of market speculation, that is, most participants usually suffer losses, and only a few people can make profits. Under normal circumstances, buying operations can be carried out when the ratio is less than 40%, and selling operations are implemented when the ratio is greater than 60%. The key lies in the fact that the ratio differences of brokers or currency pairs with poor liquidity are extremely significant, so filtering must be carried out by raising the entry threshold. For example, buy when the ratio is less than 30% and sell when the ratio is greater than 70%. If it involves currency pairs for long-term carry trade investments, such as yen currency pairs, this strategy needs to be used with caution.
In the field of long-term foreign exchange investment trading, except for one or two specific trading systems that have practical value, the rest of the trading systems can be largely regarded as lacking practical utility.
In the same way, except for one or two key trading indicators, other various trading indicators can basically be considered as having no practical significance. However, currently it seems that few people know this situation exactly or truly understand its inner meaning. Those who can fully understand and clarify this principle can be considered to be in a state of enlightenment.
For long-term foreign exchange investment traders, studying the Kelly formula may not be a wise choice in many cases.
In the formula f* = p/a - q/b, f* represents the optimal betting ratio, p is the probability of winning, q is the probability of losing, a is the net return rate when winning (that is, the ratio of profit to principal after winning), and b is the net loss rate when losing (that is, the ratio of loss to principal after losing).
From the perspective of investment philosophy, simplicity is the ultimate sophistication. Complicated investment tools and methods often may not achieve the expected results in practical applications. Taking long-term foreign exchange carry trade as an example, long-term carry trade investment can be summarized by a relatively simple formula, that is, long-term carry trade investment = savings interest + growth profit from bottom fishing or top fishing. This formula is concise and clear, easy to understand and apply.
When making long-term foreign exchange investments, investors should remain rational and avoid being misled by formulas that seem useful but have poor practical effects. Formulas that cannot bring actual returns have limited value in investment decisions and can be regarded as tools without practical application significance.
We should focus on investment methods and strategies that have been proven through practice and are practical and feasible to achieve long-term stable investment returns.
Is the compound interest formula the main reason for deceiving short-term high-frequency foreign exchange trading or ultra-short-term high-frequency foreign exchange trading?
Compound interest refers to when calculating interest. The formula is: F = P(1 + r)^n. Among them, F represents the final value, that is, the value at a specific time point in the future; P represents the present value, that is, the initial principal amount; r represents the interest rate (usually expressed in decimal form); n represents the number of interest calculation periods.
For example, if you currently have a principal of 10,000 yuan and an annual interest rate of 5%. The investment period is 3 years. Then, according to the compound interest formula, the final value is calculated as: F = 10,000 × (1 + 0.05)^3 = 10,000 × 1.157625 = 11,576.25 yuan.
Compound interest has powerful strength. As time goes by and the number of interest calculation periods increases, the principal will grow at an accelerating speed. In the fields of financial planning and long-term investment, the compound interest effect is often used to achieve wealth accumulation.
However, there are also views that compound interest is somewhat controversial in the financial world and is even regarded as a "scam". Many acts of promoting compound interest may have basic logical errors in algorithms. The logical error of the compound interest paradox mainly lies in the fact that low interest rates and situations with large fluctuations are difficult to support the so-called "miracle". To achieve significant results, one must have sufficient principal. Compound interest also involves three important factors: First, the rate of return needs to be relatively high. For example, in real life, a relatively high rate of return (such as a specific high percentage rate of return) is often difficult to achieve for large amounts of funds. Second, the principal must be sufficient. If there is only tens of thousands of yuan in principal, the total amount of compound interest growth will be very limited. Third, the time span must be long enough. Usually, it is difficult to see a significant gap within a few years. At least after ten years, the gap will gradually appear, and the longer the time, the greater the gap.
In long-term foreign exchange investment, the carry trade strategy is relatively close to the principle of the compound interest formula. Only the currencies of emerging countries may have this advantage, but the growth is not exponential. Because even if you hold a carry trade position for three years, according to the formula F = P(1 + r)^n, this n is not equal to 3 but is equivalent to 1, that is, a long-term carry trade investment. In this case, the role of this formula is not as powerful as expected.
So, is the compound interest formula the main reason for luring short-term high-frequency foreign exchange trading or ultra-short-term high-frequency foreign exchange trading? If so, the compound interest formula will undoubtedly become a super trap because short-term trading is usually difficult to succeed.
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