Which Foreign Exchange Product Is Suitable For You?

The US dollar raised interest rates and brought higher yields than the renminbi. But the US dollar has depreciated and the assets converted into RMB have continued to shrink. Do you want to change the US dollars in the US dollar to a constantly rising value?

Foreign banks have launched their linked foreign exchange products, but the risk is likely to lose their capital. Can you afford them?

The foreign exchange financial products launched by the bank are very dazzling. What exactly do you choose?

In addition to bank financing, on the Internet, margin trading, foreign exchange firm, overseas fund...

10% to 20% of the rate of return always lure you, do you want to bet?

As a foreign exchange fund holder, everyone has so many choices, but sometimes too many choices are not a good thing.

The core of foreign exchange financing is "risk preference". How much risk you can take determines what product you will choose.

The biggest news in 2005's financial market is the RMB exchange rate reform and subsequent appreciation in July 21st.

When you see the queue in front of the bank's foreign exchange counter and wait for the long drawn up exchange, you know that the RMB appreciation has hit the foreign exchange market.

Holders of foreign currency assets can no longer see the return of foreign exchange in the hands of foreign exchange holders, and with the marketization of exchange rate mechanism, the future value of foreign exchange assets is facing increasing uncertainty.

The expectation of appreciation is the last thing foreign currency managers want to see.

But for this trend, they can not stop.

Fortunately, the US dollar failed to cause the collapse of the foreign exchange wealth management market in the process of raising interest rates.

In 2005, as some foreign banks began to set foot in foreign exchange financial products and launched derivatives in succession, Chinese foreign exchange investors should learn the meaning of "risk" before the local currency market. The structural products launched by foreign banks are basically linked to a price fluctuating product, such as exchange rate, interest rate, gold, oil and so on.

After buying some foreign banks' foreign exchange financial products and losing money, some investors even complained to the local banking regulatory bureau.

Chinese investors must gradually realize that it is not that products provided by banks are not risk-free.

Foreign exchange financing is the first battleground between Chinese banks and foreign banks, but now it is not clear which side has absolute advantage.

The advantage of foreign banks is that they have high technology content and rely on the global market.

Their customers are concentrated in the high-end, implementing the principle of "earning 80% of the market profits on 20% of the customers".

The main purpose of foreign exchange financial management of most Chinese banks is also located in storage. This is also why they can quote more favorable prices on fixed income products than foreign banks because their purpose is not to make money, but to dig customers first is the most important.

In November 2005, the CBRC issued two new financial regulations, requiring foreign currency financing threshold to rise from $100 to $5000.

After cleaning up some small accounts, this threshold did not cause much impact on the foreign exchange financing business of Chinese banks.

After the initial battle in 2005, both sides slightly adjusted their tactics. Foreign banks introduced some fixed income products to meet the risk acceptance of Chinese investors.

Chinese banks are also offering products with higher price but higher risk.

Some banks approved the introduction of foreign currency products last year, so that most domestic investors may have 50 thousand yuan even if they do not have 5000 dollars in their hands.

If there is not much change in the market environment, this may be a hot spot in the financial market in 2006.

Compared with the high profile of banks' foreign exchange financing products, some underground financial management forces should not be ignored.

If you enter "foreign exchange financing" to search, numerous companies offering trading platforms will give investors too much choice and no way to start.

However, they often walk along the river and have no wet shoes.

Only a small part of the money was won, and most of the capital was lost.

It is always a gray area to expand the principal's margin by leverage principle, because the foreign exchange margin futures are listed in the foreign exchange futures market, so the risk is also expanding in the face of the maximization of profits. If the position is wrong, it is likely to lose money for a long time.