2 thoughts on “What kind of transaction or activity types have led”
Andre
Source: Securities Times Fortune Information The severe fluctuations of the recent RMB exchange rate have aroused strong market attention. In the first month of the past, the depreciation rate of the RMB against the US dollar was significantly increased, but it also staged a big reversal on the last trading day in April. The as of 16:30 on April 29th, 6.5866 was closed on the shore RMB against the US dollar exchange rate during the day, an increase of 249 basis points from the previous trading day. In the past month, the depreciation of the exchange rate of the RMB against the US dollar has reached 3.8 %. From a vertical comparison, the RMB exchange rate has entered a period of rapid adjustment. but compared with other currencies in Asia in the same period, the exchange rate of the RMB against the US dollar is actually normal fluctuations. In the past month, the yen, which has been known as the hedging currency, has fell over 7 % against the US dollar exchange rate. What reasons and foundations for the exchange rate of various countries? Today Xiaowei took everyone to find out. The history of foreign exchange markets Until 1970, foreign exchange rates were fixed. In the 1970s, a transformation to floating exchange rates appeared. The fixed exchange rate The concept of fixed exchange rate is to overcome economic discrimination with more trade privileges than other countries before the World War. The logic is that the significant fluctuation of exchange rates will adversely affect free trade. In the first three weeks of July 1944, representatives from 44 allies decided at a contest. The meeting was held in the Bretton Forest in New Hampshire, the United States. Therefore, this system or this rule is called the Bretton Forest system. The basic characteristic is that each country adopts a nail monetary policy, that is, linked its national currency to the US dollar with a fixed exchange rate. Floating exchange rate In the floating exchange rate system, the value change or fluctuation of a currency compared to other currencies depends on various economic factors and speculative transactions. This is the starting point of speculative transactions. Marketing participants The bank/investment bank S commercial company National central bank hedge funds investment management companies n non -bank foreign exchange companies The company that provides international transfer/remittance services The bank and investment bank The foreign exchange transactions are interbank transactions. Interbank transactions include: The commercial foreign exchange demand, because commercial companies conduct international trade, conduct various forms of international asset investment, and mergers and acquisitions. If investment transactions or speculative transactions are the core activities. This kind of activity can be targeted at both external customers and the bank's own investment. The commercial company All big companies have global business. In addition to international trade, foreign exchange always needs foreign exchange to carry out daily businesses. The amount of salary and foreign travel expenses is relatively small, but in some cases, it may even involve a large amount. In central banks/reserve banks This responsibility for controlling currency supply, currency valuation and currency interest rates to make it an important entity in the market. Sometimes, the central bank intervenes the market and buys or sells a large number of domestic currencies in order to make necessary adjustments to the valuation of other currencies against other currencies. Strong currencies are not conducive to exports of a country, and vulnerable currencies are not conducive to imports. 金 Fund The high volatility of the exchange rate makes companies relying on international trade need to protect their negative effects of exchange rate fluctuations. The slight fluctuation of exchange rates sometimes causes heavy losses. This makes hedge fund companies grow very quickly, which also makes the transaction volume of hedge funds grow rapidly. Large hedge funds are the largest speculators in the foreign exchange trading market. Investment management companies This companies may choose to participate in currency transactions directly as investment, or need foreign currency in order to invest in international stocks, bonds, assets, etc. These companies conduct large transactions on behalf of customers. The retail foreign exchange broker The retail foreign exchange transactions have allowed retail foreign exchange transactions since developed countries, and retail foreign exchange transactions have begun to increase in retail foreign exchange transactions since the popularity of developing countries. As of 2009 estimates, the retail transaction volume is estimated to be 12 % of the total transaction volume. These individuals conduct foreign exchange transactions through retail foreign exchange brokers. The non -bank foreign exchange companies with non -deggarrel currency demand This companies/brokers pay attention to small organizations and individuals' foreign exchange needs. There are also some companies' business to help foreign remittances. They are not traded as speculators, nor do they trade currency transactions as investors, but to trade or transfer physical currencies in the way of currency physical objects. The transaction amount may be small, but a large number of transactions can make the total transaction volume quite high. The market size The foreign exchange market is the world's most liquidity and largest financial market, with an average daily transaction volume of about 5 trillion US dollars. The largest foreign exchange trading center is London, but New York, Tokyo, Hong Kong and Singapore are important foreign exchange trading centers. London accounts for more than 40 % of global foreign exchange transactions. rn与股票不同，股票是地域性的，而货币交易整天都在进行，亚洲交易时段结束后，欧洲交易时段开始，接着是北美交易时段，然后又是又亚洲交易时段，公众/ Except for bank holidays and weekends. Most transactions occur in six major centers, namely London, New York, Tokyo, Singapore, Australia and Canada. The currency pairs Main currency pairs: For the main currency pairs, you will find different definitions. Some people will say that all currency pairs, including the dollar, are the main currency pairs. However, the main currency pair is the largest currency pair, so it includes the major international currency that matches the US dollar. It we can say that the main currency is: euro/USD, USD/yen, USD/Swiss franc, British/USD, Australian dollar/USD, USD/pound. Basically, the main currency pairs are the largest currency pairs. Cross currency right: In history, when we want to exchange one currency to another currency, we first need to exchange the currency to be exchanged to the US dollar, and then exchange the dollar to a target currency. Therefore, any currency that needs to be exchanged into another currency must follow the US dollar line. Is when other international currencies, that is, euro, pound, yen, Australian dollar, Canadian dollar, and Swiss francs become strong, this process will change. The exchange between these currencies and other currencies does not need to follow the route of the US dollar and can be redeemed directly. The currency symmetry of these currencies is the main cross currency pair, such as the pound/yen, the euro/yen and the Australian dollar/yen. The other is the cross currency pairs of the euro, just including the above currency and the euro currency pair. The money pair: The remaining currency pairs are secondary currency pairs, and the liquidity and transaction volume are relatively low. The trading characteristics of currency Due to the nature of the economy in the world, different currencies have different characteristics. Let's take a look at various currency types. The currency linked to growth: The currency linked to the growth is the currency of the economy or the dependent economy. When the global or imported country's economy performs well, exports are good. Therefore, when exports are good or expected, these currencies will become relatively strong. Currency linked to economic growth is Australian, Canadian and New Yuan. The economy of these countries largely depends on the products that are rapidly developing in exports and products needed by other industries and manufacturing countries. The arbitrage trading currency: arbitrage transaction refers to buying currency with much higher interest rates by selling currencies with very low interest rates. These are usually long -term transactions, the purpose is to earn a lot of spreads. In history, due to huge spreads, the yen against Australia and New Yuan have always been arbitrage trading currencies. Arbitrage transactions occur during high -risk preferences because global economic prospects are optimistic. Arbitrage trading currency pairs also change due to changes in interest rates and economic conditions. The insurance currency: Insurance currency refers to the currency bought when the risk disgust is weakened. When the global economic health is uncertain, people tend to buy more secure assets/currencies. Due to various factors, these currencies are considered to be a shelter. Some of these factors are as follows: Global dependence: What is the share of specific currencies held by other countries as a reserve currency? On average, the US dollar accounts for two -thirds of the global reserve currency, so its share is the highest. Economic stability: Considering low inflation and other factors, Swiss francs have always been considered a safe currency because its inflation is very low. The bank system and legal requirements: There may be various factors, we will not introduce it in detail, but the legal requirements for currency are also a factor. For example, before the end of April 2000, Swiss law stipulates that at least 40 % of Swiss francs must have gold for support. This requirement has been canceled, but Switzerland still has a huge golden reserves and a long -established banking system. What driving foreign exchange market economic factors and economic press release: The supply and demand relationship of specific currencies, the relative value of currency pairs depends to a large extent on the health of the economy. There are many economic indicators that measure economic strength. In addition, large mergers and acquisitions can also cause temporary supply and demand fluctuations, which causes market fluctuations. Politic factors: Political stability is a factor behind people's confidence in a specific economy. Therefore, political situation/change can also lead to fluctuations in the foreign exchange market. Market psychology/emotion: In fact, market psychology and emotions will cause significant fluctuations in any investment market, including the foreign exchange market. Fear of adverse factors or expectations of favorable factors may cause errors and may lead to rising or falling. The negative emotions of a currency may continue to soften it for a long time, even if economic data is actually positive, vice versa. Market sentiment plays a very important role in currency transactions. The transaction decision -making foundation The technical analysis: Many foreign exchange traders use technical analysis. The technical indicators analyzed the past and undergoing price trends, and the results of observation can be obtained from it. Due to the huge transaction volume due to technical observation, prices often move in the expected direction. The technical analysis itself is not magic, but because of the above facts, it is indeed effective. An important buying signal appeared, so the purchase transaction volume increased significantly, and the price rose further, which was so simple.最常用的指标有一目均衡图、平滑异同移动均线、移动均线、布林带、斐波那契回调、相对强度指数、平均方向指标、随机振荡指标和抛物线指标，除此之外，还有一些常见The chart form is also used to analyze the trend of price and predict possible trends. Basic analysis and technical analysis: For short -term trading positions (in -day transactions), it is possible to rely on technical analysis. Although it is not desirable, it may be fatal for long -term positions. Regardless of the time framework, when making transaction decisions, it is best to use fundamental analysis and technical analysis as the basis. Do not forget the market sentiment and geopolitical factors that affect the market trend. electronic/automated transactions: This is a growing type of transaction. Trading decisions are not manually made. Decisions for automatic management of transaction positions based on different algorithms and logic computers (entry, departure, stop loss, and profitability). Computer programs are complex procedures for decision -making based on technical analysis. It automation decisions are not only decisions on admission, departure, etc., but also include decisions such as positioning time, order scale (position scale). In addition to transaction decisions, these procedures can also build a peaceful position on a foreign exchange trading platform without manual intervention. The latest progress is to adapt to fundamental analysis through economic data supply, and the logic/algorithm of foreign exchange robots also consider these data in transaction decisions. This automatic transaction is also called robot transactions or black box transactions because of lack of human intervention. If supervision agencies The considering market transaction volume and fluctuations, and the continuous growth of retail foreign exchange transactions, it is always necessary to regulate the market, so as to avoid negative factors and protect market participants. The foreign exchange market is not specific in a certain area, but is seamlessly operated by cross -border. Unlike the foreign exchange market, regulators are specific in a certain region and are national institutions. Regulations or laws are suitable for participants in specific regions/countries. It basic terms Points difference: point is the minimum change unit of currency pairs. For most currency pairs, 1 point = 0.0001 currency units, but for the yen currency pair (such as US dollar/yen, euro/yen, etc.), 1 point = 0.01 yen. You can check the point value calculator to calculate the value of the account currency 1 point. The leverage: The leverage is a mechanism that enables you to hold a much larger position than the account. Or we can say that we can hold more trading positions than actual investment. For example, if you use a 30: 1 foreign exchange leverage, this means that you can use $ 1,000 for $ 30,000 in transactions. Increasing leverage has increased the chance of profit and loss. Selling price: The selling price is the "selling price" provided by large international banks. They will sell currency at the "selling price". The purchase price is a "buy price" provided by large international banks, and they will buy currency at the "buy price". Sales price difference: The difference between buying and selling or abbreviation refers to the difference between the price and selling price. When you want to buy, you have to pay a higher price (selling price), and when you want to sell, you will get a lower price (buying price). You will learn more about foreign exchange price differences in foreign exchange brokers. Basic currency and corresponding currency: The international code for the three letters of these currencies (for example, euro and the US dollar pair EUR/USD). In this example, the first currency is called the basic currency, which is the euro in this example. The second currency is called the quotation currency, which is the US dollar in this example. Ollarly: Sold a currency pair when the expected exchange rate falls, and then buy to make up for the position. Make multiple positions: In the expected currency when appreciating appreciation, and then sell. The stop loss order: The stop loss order refers to the trend of currency pairs different from our expected direction, we use to close the position to prevent orders from further losses. The tracking stop loss: This Moving stop loss orders according to the movement direction of the currency pair (that is, when the currency rises, the stop loss moves upward, vice versa). It profit -making orders: The profitability is the target price of our trading position. The position is lined up at the level of the order, so as to achieve a profit. The ratio of risk return: The ratio of returns (profitable) to risk (stop loss). Ideally, the risk return ratio should be maintained above 1. Standard hand scales: The standard hand scale is the basic currency of 100,000 units. You can also view the scale of various foreign exchange hands. The price limited order: This refers to the order of future price levels different from the current price. For example, assuming the current price of the euro/yen is 135.90, we expect to rise and want to buy. But we also expect to fall to 135.60 before rising. So we pay the price limit at 135.60. If the euro/yen falls to 135.60, the order will be filled. We also have a limited time for filling in the order, because there is no time limit for a period of danger. Puvenal deposit: This brokers notify you to enter further, otherwise all your unbound positions will automatically close the position to prevent the account from bursting out. This situation occurs only when your risk management is bad, your trading position suffers huge losses, and the account is in danger of explosive positions. In support bits: refers to the price level we expect its support. Assuming that the currency is falling, it cannot stop underground, and it can find support at some levels. In the support level, the currency is either in the direction of reversal, starting up, or some upward amendments before recovery. A resistance bits: I we expect to hinder the price level of the currency on further movement. Assuming that the currency is rising, it cannot go up endlessly, and it will encounter resistance at some levels. In the resistance level, the currency is either in the direction of reversal, starts down, or some downward amendments are performed before restoring the upward trend. Foreign exchange correlation: The currency may move in the same direction. The correlation is strong, and some currencies are weak in correlation. Similarly, some currencies may have strong correlations. In the transaction, there is a strong positive or negative relationship between some currencies. When a number of such currency pairs hold the position at the same time, pay attention. When a transaction profit is offset by the loss of another transaction, this can play a role in protecting. Bit arbitrage transactions: The arbitrage transactions are to buy assets that can bring higher returns without requiring the daily price trend. In foreign exchange transactions, arbitrage transactions refer to currencies with higher returns (interest rates). Assuming the interest rate of the yen is 0.1 %, and the interest rate of the Australian dollar is 4.5 %, then buying the Australian dollar means obtaining profit because there is a spread. US dollar index: is one of the global reserve currencies and has the informal status of world currencies. Sometimes, it depends not only on how the dollar currency pair (such as the euro/USD, dollar/yen, pound/USD, USD/Swiss franc, etc.) depends on what happened in the US dollar in the foreign exchange market. In general, the dollar is weakening or strong. By measuring the exchange rate of other major currencies against the dollar, the US dollar index has achieved this. This basket currency includes euro, pounds, Canadian dollars, Swedish Krona, and yen. As mentioned above, the US dollar index is the weighted index value of the US dollar against a basket of currencies calculated based on the valuation of March 1973. Therefore, 83.00 on the index means 83 % of the current value in March 1973. Since its establishment in 1973, the US dollar index currency and the US dollar index currency weight has not changed, except for the introduction of the euro in early 1999. How to place an order through a broker When you place an order through a foreign exchange broker, knowing how to place an order correctly is very important, you should be based on the transaction method — that is, how you plan to enter and leave the field —— Come to place an order. Inappropriate underground order will distort your entry and departure point. In this article, we will introduce some of the most common foreign exchange orders. Plip type The market price single This is the most common order type. When you want to execute orders immediately at the market price, you can use the market price bill, that is, the purchase price or price displayed on the screen. You can use the market price single to create a new position (buy or sell), or withdraw from existing positions (buy or sell). The stop loss order The stop loss order refers to the order of the market price bill only when reaching the specified price, which can be used to create a new position or exit existing positions. The stop loss purchase refers to the purchase price of the buying price at the current market price when the market reaches the designated price or higher, and the purchase price must be higher than the current market price. The stop loss selling order means that when the market reaches the specified price or lower, the order of selling currency pairs at the market price must be lower than the current market price. When you make a breakthrough, the stop loss order is usually used for admission For example: Assuming the US dollar/Swiss franc to the resistance level, according to analysis, if you think that if you break through the resistance, the price will continue to rise. To deal with this view, you can issue a stop loss to pay at the position of several points above the resistance, so that you can trade for potential upward breakthroughs. If the price reaches or exceeds the price you designated, it will create a multi -header. It if you want to trade on a downward breakthrough, you can also use stop loss orders. A stop loss order is issued at the position of several points below the support level, so that when the price reaches or lower than the price you specifies, the short position will be created. The losses with stop loss orders everyone will suffer losses from time to time, but what really affects the performance is the scale of loss and how to manage it. Before starting the transaction, you should already know where the market is not good for your position. One of the most effective ways to restrict losses is the pre -set stop loss order. If you make more dollars/Swiss francs, you will want the currency to appreciate. In order to avoid unavailable losses, you can issue stop -loss selling orders at a certain price, so that when the specified price is reached, the position will be automatically closed. Conversely, you can use stop loss to pay for short positions. If the stop loss order to protect profitability Once your transaction starts to make a profit, you may turn the stop loss single to the profit direction to protect some of your profit. For the long -headed bulls, you can transfer the stop -loss selling order from a loss area to a profitable area to prevent losses when the transaction does not meet the designated profit target and the market is unfavorable to your transactions. Similarly, for the short -term polyphony, you can transfer the stop loss order from a loss area to a profitable area to protect your profit. The price limit list . When you are only willing to create a new position at a specific price or higher price, or withdraw from the current position, you will issue a limited price. Only when the market reaches this price or better price, the order will be filled. The price limit purchase refers to the order of buying currency pairs at the market price when the market reaches a designated or lower price. This price must be lower than the current market price. The price -limited selling order refers to the order of selling currency pairs at the market price when the market reaches the price of you designated or has a higher price. This price must be higher than the current market price. The price limit is usually used to enter the market for breakthroughs When you think that currency prices will not successfully break through the resistance level or support level, you will fade out the transaction for breakthroughs. In other words, you expect that currency prices will fall from the resistance level, or rebound from the support level. For example: Assuming that based on your analysis of the market, you think that the current rise of the US dollar/Swiss franc is unlikely to successfully break through the resistance level. Therefore, when the US dollar/Swiss franc rose to the closer resistance, you think this will be a good opportunity to short. In order to use this theory, you can issue a limited price selling order at the position of several points below the resistance, so that when the market rises to the specified or higher price, your short order will be filled. In addition to using a limited price single to short near the resistance, you can also use the price limited order near the support level. For example, if you think that the current decline of the US dollar/Swiss franc is likely to suspend and reverse and reverse it near a certain support position, then when the US dollar/Swiss franc falls near the support position, you may want to seize the opportunity to do more. In this case, you can issue a limited price to pay at the position of several points above the support level, so that when the market falls to the specified or lower price, your order will be filled. The profit target is set with a limited price single before the transaction, you should already know what level you will make a profit if the transaction is running as expected. The price limit order allows you to leave the market at the pre -set profit target. If you make multiple currency pairs, you will use a limited -selling order to set the profit target. If you are short, you should use a limited price to set up profitable targets. Please note that these orders only accept the price of profitable areas. Predic order has a clear understanding of different types of orders, which will enable you to use the correct tools to achieve the goal -how do you want to enter the venue (transaction or fade), and you will be you will be How to leave the field (profit and loss). Although there may be other types of orders, market prices, stop loss and limited price orders are the most common. You must use such tools proficiently, because it is not appropriate to execute orders to make you spend money. In recent years, as more and more regular foreign exchange brokers have entered the domestic market, domestic investors have become more and more understanding the process of foreign exchange transactions. A-Book, B-Book, MM, STP, ECN These foreign exchange terms are also familiar with everyone. But where did the order of retail foreign exchange traders go? How is it in the market? Many traders do not know well. Today, I will talk to you about how foreign exchange brokers handle customer orders. Whats of retail foreign exchange orders are processed in the broker? If decentralized characteristics of the foreign exchange trading market itself, there is no concentrated trading venue in the foreign exchange market. Although some countries have internal foreign exchange transactions, global foreign exchange transactions are still the OTC market -based transactions. Essence In the foreign exchange trading market, the inter -bank foreign exchange market is an important part of it. Banks, central banks, investment funds, international financial institutions, and brokers have participated in it. The inter -bank foreign exchange market has high requirements on the amount and transaction volume of participants, and requires advanced technology. Therefore, retail traders and speculators with small transaction volume cannot be sent directly to the inter -bank market. . Therefore, at present, many retail foreign exchange brokers cannot sell small orders for retail customers directly to the inter -bank market for matching transactions. For brokers, the cost of this approach is too high; for banks, they I am not willing to receive such a small order. To achieve this goal, they must rely on the service providers of the intermediate institution, that is, foreign exchange brokers. The operating models of our common foreign exchange transactions are MM, STP, ECN. Let's analyze how to run foreign exchange orders in different modes. mm mode mm mode is also a market business model. The market business market generally contains two levels: one is the wholesale market between the market and the market business; the other is to be the retail market between the city merchants and traders. Retail marketors are usually companies that provide retail foreign exchange services to individual traders. Interbank institutions are usually banks or other large companies. They usually provide buying and selling quotations from other banks, institutions, ECN and even retail. In in the retail market, when personal investors face a single market business inquiry transaction, they must consider the integrity of the dealers. Then add your profits to the customer. The market quotes obtained from different dealers from different dealers are not the same. This is because the quotation of the dealer to the customer is the quotation after the profit. In addition to the difference in the cost, interest and commission costs from the customer's payment, the profit of the city merchants will also make risk returns earned by the loss of customers obtained in the market. It does not stipulate how to hedge risk in relevant laws in the United States, so it depends entirely on the dealer's own risk control strategy. If the customer's order can be completely healed, the traders can hardly bear additional risks, and the benefits obtain are relatively stable, but in real life, it is difficult to have purely hedge. The market business model plays an important role in improving the liquidity of the foreign exchange market, improving market transaction efficiency, transfer and sharing risk, and promoting market development. However, because the municipal businessmen may intervene in the transaction and become a trading opponent of investors, investors and potential interests in the market have potential interests during the order execution. Some non -compliant market makers may manipulate prices, either to prevent customers from being triggered, or to make transactions unable to achieve profitable targets. stp mode stp mode (Straight Through) is also a direct processing system. However, it should be noted that the orders of customers in the retail market will not be directly input to the market between bank institutions under any circumstances. It replicates the customer's transaction for hedging by the dealer through mirror trading, so the customer’s position is still in the trading offices, while the trader is Pass passes to form a virtual "straight into the market" mode. The STP model in the institutional market, because major institutions are used as marketers to trading their opponents by point -to -point ways. There are generally "GIVE-Up" protocols between merchants, which will hand over the transaction list with their own transactions to the opponent's substantial Prime Broker. In STP mode, the dealer transferred the customer's order to the bank through mirror transactions. Suspension appears, which means that the order has been executed but still stays at the single window waiting for the appropriate price of the bank. When transactions fluctuate frequently, it is very easy to have a number of orders waiting for processing. Too many orders will affect the bank's confirmation of some orders, and even refuse to match the order when the price does not match the price of the customer. In the STP model, because the bank is the main leader of the foreign exchange market, the quotation is closer to the market price, so it can ensure that customers' order transactions are maximized and entering the international foreign exchange market. ecn mode ecn mode is also an electronic communication network mode. This model passes the orders from all customers to the international market for hedging. These large international markets have a large amount of funds, and there are also relevant departments to supervise them. Therefore, customers' funds are relatively safe. and the domestic gambling platform has its own fund pool, but there is a big risk of this fund pool. Once there is a problem, investors may face the risk of unable to pay for money. In recent years, some platforms have also taken advantage of their funds when the customer has a large amount of funds. ecn model is completed by close cooperation with banks, institutions, foreign exchange markets and technology suppliers. The orders and records of all transactions will be displayed online in a direct and anonymous manner. Each order is equally equally. Based on time and price priority, the transaction price is the actual market price. In this perspective, the ECN model includes STP, and also includes a transaction model that truly realizes the orders of retail investors in the market or equivalent to the market. The domestic reality ECN operating mode refers to hundreds of liquidity providers in an ECN network. These liquidity providers pass the offer to the ECN at the same time. After that, ECN integrated all quotes, only showing the best purchase price and the best price, and formed a difference. The biggest advantage of ecn mode is that the transparency is higher and can provide better offer. In this model, the customer's transaction opponent is not a dealer, but a customer in the bank, and the price changes are relatively frequent, so it is more conducive to transaction for ultra -short -term investors. The banks and other related companies will provide customers with the best services as much as possible. At the same time, the quotation of the ECN model is more accurate. However, the ECN model is mainly aimed at institutional investors, and the threshold for account opening has high, which has stopped many small investors. Source: part of the content comprehensive from financial and economic remittance.
1. I think this must be related to the formation of the country. The formation of the country, and the rulers have the power to issue currency issuance. Because there are different countries in the world, different currencies are issued. In a word, the country is different and the currency issued is different. 2. The country is different and the currency is different. If you want to trade between the country, you must exchange currency exchanges, which is one of the reasons for foreign exchange. 3. The difference in currency circulation between nationals has caused different values between currency.
Source: Securities Times Fortune Information
The severe fluctuations of the recent RMB exchange rate have aroused strong market attention.
In the first month of the past, the depreciation rate of the RMB against the US dollar was significantly increased, but it also staged a big reversal on the last trading day in April.
The as of 16:30 on April 29th, 6.5866 was closed on the shore RMB against the US dollar exchange rate during the day, an increase of 249 basis points from the previous trading day. In the past month, the depreciation of the exchange rate of the RMB against the US dollar has reached 3.8 %. From a vertical comparison, the RMB exchange rate has entered a period of rapid adjustment.
but compared with other currencies in Asia in the same period, the exchange rate of the RMB against the US dollar is actually normal fluctuations. In the past month, the yen, which has been known as the hedging currency, has fell over 7 % against the US dollar exchange rate.
What reasons and foundations for the exchange rate of various countries? Today Xiaowei took everyone to find out.
The history of foreign exchange markets
Until 1970, foreign exchange rates were fixed. In the 1970s, a transformation to floating exchange rates appeared.
The fixed exchange rate
The concept of fixed exchange rate is to overcome economic discrimination with more trade privileges than other countries before the World War. The logic is that the significant fluctuation of exchange rates will adversely affect free trade. In the first three weeks of July 1944, representatives from 44 allies decided at a contest.
The meeting was held in the Bretton Forest in New Hampshire, the United States. Therefore, this system or this rule is called the Bretton Forest system. The basic characteristic is that each country adopts a nail monetary policy, that is, linked its national currency to the US dollar with a fixed exchange rate.
Floating exchange rate
In the floating exchange rate system, the value change or fluctuation of a currency compared to other currencies depends on various economic factors and speculative transactions. This is the starting point of speculative transactions.
Marketing participants
The bank/investment bank
S commercial company
National central bank
hedge funds
investment management companies
n non -bank foreign exchange companies
The company that provides international transfer/remittance services
The bank and investment bank
The foreign exchange transactions are interbank transactions. Interbank transactions include:
The commercial foreign exchange demand, because commercial companies conduct international trade, conduct various forms of international asset investment, and mergers and acquisitions.
If investment transactions or speculative transactions are the core activities. This kind of activity can be targeted at both external customers and the bank's own investment.
The commercial company
All big companies have global business. In addition to international trade, foreign exchange always needs foreign exchange to carry out daily businesses. The amount of salary and foreign travel expenses is relatively small, but in some cases, it may even involve a large amount.
In central banks/reserve banks
This responsibility for controlling currency supply, currency valuation and currency interest rates to make it an important entity in the market. Sometimes, the central bank intervenes the market and buys or sells a large number of domestic currencies in order to make necessary adjustments to the valuation of other currencies against other currencies. Strong currencies are not conducive to exports of a country, and vulnerable currencies are not conducive to imports.
金 Fund
The high volatility of the exchange rate makes companies relying on international trade need to protect their negative effects of exchange rate fluctuations. The slight fluctuation of exchange rates sometimes causes heavy losses. This makes hedge fund companies grow very quickly, which also makes the transaction volume of hedge funds grow rapidly. Large hedge funds are the largest speculators in the foreign exchange trading market.
Investment management companies
This companies may choose to participate in currency transactions directly as investment, or need foreign currency in order to invest in international stocks, bonds, assets, etc. These companies conduct large transactions on behalf of customers.
The retail foreign exchange broker
The retail foreign exchange transactions have allowed retail foreign exchange transactions since developed countries, and retail foreign exchange transactions have begun to increase in retail foreign exchange transactions since the popularity of developing countries. As of 2009 estimates, the retail transaction volume is estimated to be 12 % of the total transaction volume. These individuals conduct foreign exchange transactions through retail foreign exchange brokers.
The non -bank foreign exchange companies with non -deggarrel currency demand
This companies/brokers pay attention to small organizations and individuals' foreign exchange needs. There are also some companies' business to help foreign remittances. They are not traded as speculators, nor do they trade currency transactions as investors, but to trade or transfer physical currencies in the way of currency physical objects. The transaction amount may be small, but a large number of transactions can make the total transaction volume quite high.
The market size
The foreign exchange market is the world's most liquidity and largest financial market, with an average daily transaction volume of about 5 trillion US dollars. The largest foreign exchange trading center is London, but New York, Tokyo, Hong Kong and Singapore are important foreign exchange trading centers. London accounts for more than 40 % of global foreign exchange transactions. rn与股票不同，股票是地域性的，而货币交易整天都在进行，亚洲交易时段结束后，欧洲交易时段开始，接着是北美交易时段，然后又是又亚洲交易时段，公众/ Except for bank holidays and weekends. Most transactions occur in six major centers, namely London, New York, Tokyo, Singapore, Australia and Canada.
The currency pairs
Main currency pairs: For the main currency pairs, you will find different definitions. Some people will say that all currency pairs, including the dollar, are the main currency pairs. However, the main currency pair is the largest currency pair, so it includes the major international currency that matches the US dollar.
It we can say that the main currency is: euro/USD, USD/yen, USD/Swiss franc, British/USD, Australian dollar/USD, USD/pound. Basically, the main currency pairs are the largest currency pairs.
Cross currency right: In history, when we want to exchange one currency to another currency, we first need to exchange the currency to be exchanged to the US dollar, and then exchange the dollar to a target currency. Therefore, any currency that needs to be exchanged into another currency must follow the US dollar line.
Is when other international currencies, that is, euro, pound, yen, Australian dollar, Canadian dollar, and Swiss francs become strong, this process will change. The exchange between these currencies and other currencies does not need to follow the route of the US dollar and can be redeemed directly. The currency symmetry of these currencies is the main cross currency pair, such as the pound/yen, the euro/yen and the Australian dollar/yen. The other is the cross currency pairs of the euro, just including the above currency and the euro currency pair.
The money pair: The remaining currency pairs are secondary currency pairs, and the liquidity and transaction volume are relatively low.
The trading characteristics of currency
Due to the nature of the economy in the world, different currencies have different characteristics. Let's take a look at various currency types.
The currency linked to growth: The currency linked to the growth is the currency of the economy or the dependent economy. When the global or imported country's economy performs well, exports are good. Therefore, when exports are good or expected, these currencies will become relatively strong. Currency linked to economic growth is Australian, Canadian and New Yuan. The economy of these countries largely depends on the products that are rapidly developing in exports and products needed by other industries and manufacturing countries.
The arbitrage trading currency: arbitrage transaction refers to buying currency with much higher interest rates by selling currencies with very low interest rates. These are usually long -term transactions, the purpose is to earn a lot of spreads. In history, due to huge spreads, the yen against Australia and New Yuan have always been arbitrage trading currencies. Arbitrage transactions occur during high -risk preferences because global economic prospects are optimistic. Arbitrage trading currency pairs also change due to changes in interest rates and economic conditions.
The insurance currency: Insurance currency refers to the currency bought when the risk disgust is weakened. When the global economic health is uncertain, people tend to buy more secure assets/currencies.
Due to various factors, these currencies are considered to be a shelter. Some of these factors are as follows:
Global dependence: What is the share of specific currencies held by other countries as a reserve currency? On average, the US dollar accounts for two -thirds of the global reserve currency, so its share is the highest.
Economic stability: Considering low inflation and other factors, Swiss francs have always been considered a safe currency because its inflation is very low.
The bank system and legal requirements: There may be various factors, we will not introduce it in detail, but the legal requirements for currency are also a factor. For example, before the end of April 2000, Swiss law stipulates that at least 40 % of Swiss francs must have gold for support. This requirement has been canceled, but Switzerland still has a huge golden reserves and a long -established banking system.
What driving foreign exchange market
economic factors and economic press release: The supply and demand relationship of specific currencies, the relative value of currency pairs depends to a large extent on the health of the economy. There are many economic indicators that measure economic strength. In addition, large mergers and acquisitions can also cause temporary supply and demand fluctuations, which causes market fluctuations.
Politic factors: Political stability is a factor behind people's confidence in a specific economy. Therefore, political situation/change can also lead to fluctuations in the foreign exchange market.
Market psychology/emotion: In fact, market psychology and emotions will cause significant fluctuations in any investment market, including the foreign exchange market. Fear of adverse factors or expectations of favorable factors may cause errors and may lead to rising or falling. The negative emotions of a currency may continue to soften it for a long time, even if economic data is actually positive, vice versa. Market sentiment plays a very important role in currency transactions.
The transaction decision -making foundation
The technical analysis: Many foreign exchange traders use technical analysis. The technical indicators analyzed the past and undergoing price trends, and the results of observation can be obtained from it. Due to the huge transaction volume due to technical observation, prices often move in the expected direction.
The technical analysis itself is not magic, but because of the above facts, it is indeed effective. An important buying signal appeared, so the purchase transaction volume increased significantly, and the price rose further, which was so simple.最常用的指标有一目均衡图、平滑异同移动均线、移动均线、布林带、斐波那契回调、相对强度指数、平均方向指标、随机振荡指标和抛物线指标，除此之外，还有一些常见The chart form is also used to analyze the trend of price and predict possible trends.
Basic analysis and technical analysis: For short -term trading positions (in -day transactions), it is possible to rely on technical analysis. Although it is not desirable, it may be fatal for long -term positions. Regardless of the time framework, when making transaction decisions, it is best to use fundamental analysis and technical analysis as the basis. Do not forget the market sentiment and geopolitical factors that affect the market trend.
electronic/automated transactions: This is a growing type of transaction. Trading decisions are not manually made. Decisions for automatic management of transaction positions based on different algorithms and logic computers (entry, departure, stop loss, and profitability). Computer programs are complex procedures for decision -making based on technical analysis.
It automation decisions are not only decisions on admission, departure, etc., but also include decisions such as positioning time, order scale (position scale). In addition to transaction decisions, these procedures can also build a peaceful position on a foreign exchange trading platform without manual intervention.
The latest progress is to adapt to fundamental analysis through economic data supply, and the logic/algorithm of foreign exchange robots also consider these data in transaction decisions. This automatic transaction is also called robot transactions or black box transactions because of lack of human intervention.
If supervision agencies
The considering market transaction volume and fluctuations, and the continuous growth of retail foreign exchange transactions, it is always necessary to regulate the market, so as to avoid negative factors and protect market participants.
The foreign exchange market is not specific in a certain area, but is seamlessly operated by cross -border. Unlike the foreign exchange market, regulators are specific in a certain region and are national institutions. Regulations or laws are suitable for participants in specific regions/countries.
It basic terms
Points difference:
point is the minimum change unit of currency pairs. For most currency pairs, 1 point = 0.0001 currency units, but for the yen currency pair (such as US dollar/yen, euro/yen, etc.), 1 point = 0.01 yen. You can check the point value calculator to calculate the value of the account currency 1 point.
The leverage:
The leverage is a mechanism that enables you to hold a much larger position than the account. Or we can say that we can hold more trading positions than actual investment. For example, if you use a 30: 1 foreign exchange leverage, this means that you can use $ 1,000 for $ 30,000 in transactions. Increasing leverage has increased the chance of profit and loss.
Selling price:
The selling price is the "selling price" provided by large international banks. They will sell currency at the "selling price". The purchase price is a "buy price" provided by large international banks, and they will buy currency at the "buy price". Sales price difference: The difference between buying and selling or abbreviation refers to the difference between the price and selling price. When you want to buy, you have to pay a higher price (selling price), and when you want to sell, you will get a lower price (buying price). You will learn more about foreign exchange price differences in foreign exchange brokers.
Basic currency and corresponding currency:
The international code for the three letters of these currencies (for example, euro and the US dollar pair EUR/USD). In this example, the first currency is called the basic currency, which is the euro in this example. The second currency is called the quotation currency, which is the US dollar in this example.
Ollarly:
Sold a currency pair when the expected exchange rate falls, and then buy to make up for the position.
Make multiple positions:
In the expected currency when appreciating appreciation, and then sell.
The stop loss order:
The stop loss order refers to the trend of currency pairs different from our expected direction, we use to close the position to prevent orders from further losses.
The tracking stop loss:
This Moving stop loss orders according to the movement direction of the currency pair (that is, when the currency rises, the stop loss moves upward, vice versa).
It profit -making orders:
The profitability is the target price of our trading position. The position is lined up at the level of the order, so as to achieve a profit.
The ratio of risk return:
The ratio of returns (profitable) to risk (stop loss). Ideally, the risk return ratio should be maintained above 1.
Standard hand scales:
The standard hand scale is the basic currency of 100,000 units. You can also view the scale of various foreign exchange hands.
The price limited order:
This refers to the order of future price levels different from the current price. For example, assuming the current price of the euro/yen is 135.90, we expect to rise and want to buy. But we also expect to fall to 135.60 before rising. So we pay the price limit at 135.60. If the euro/yen falls to 135.60, the order will be filled. We also have a limited time for filling in the order, because there is no time limit for a period of danger.
Puvenal deposit:
This brokers notify you to enter further, otherwise all your unbound positions will automatically close the position to prevent the account from bursting out. This situation occurs only when your risk management is bad, your trading position suffers huge losses, and the account is in danger of explosive positions.
In support bits:
refers to the price level we expect its support. Assuming that the currency is falling, it cannot stop underground, and it can find support at some levels. In the support level, the currency is either in the direction of reversal, starting up, or some upward amendments before recovery.
A resistance bits:
I we expect to hinder the price level of the currency on further movement. Assuming that the currency is rising, it cannot go up endlessly, and it will encounter resistance at some levels. In the resistance level, the currency is either in the direction of reversal, starts down, or some downward amendments are performed before restoring the upward trend.
Foreign exchange correlation:
The currency may move in the same direction. The correlation is strong, and some currencies are weak in correlation. Similarly, some currencies may have strong correlations. In the transaction, there is a strong positive or negative relationship between some currencies. When a number of such currency pairs hold the position at the same time, pay attention. When a transaction profit is offset by the loss of another transaction, this can play a role in protecting.
Bit arbitrage transactions:
The arbitrage transactions are to buy assets that can bring higher returns without requiring the daily price trend. In foreign exchange transactions, arbitrage transactions refer to currencies with higher returns (interest rates). Assuming the interest rate of the yen is 0.1 %, and the interest rate of the Australian dollar is 4.5 %, then buying the Australian dollar means obtaining profit because there is a spread.
US dollar index:
is one of the global reserve currencies and has the informal status of world currencies. Sometimes, it depends not only on how the dollar currency pair (such as the euro/USD, dollar/yen, pound/USD, USD/Swiss franc, etc.) depends on what happened in the US dollar in the foreign exchange market.
In general, the dollar is weakening or strong. By measuring the exchange rate of other major currencies against the dollar, the US dollar index has achieved this. This basket currency includes euro, pounds, Canadian dollars, Swedish Krona, and yen. As mentioned above, the US dollar index is the weighted index value of the US dollar against a basket of currencies calculated based on the valuation of March 1973. Therefore, 83.00 on the index means 83 % of the current value in March 1973. Since its establishment in 1973, the US dollar index currency and the US dollar index currency weight has not changed, except for the introduction of the euro in early 1999.
How to place an order through a broker
When you place an order through a foreign exchange broker, knowing how to place an order correctly is very important, you should be based on the transaction method — that is, how you plan to enter and leave the field —— Come to place an order. Inappropriate underground order will distort your entry and departure point. In this article, we will introduce some of the most common foreign exchange orders.
Plip type
The market price single
This is the most common order type. When you want to execute orders immediately at the market price, you can use the market price bill, that is, the purchase price or price displayed on the screen. You can use the market price single to create a new position (buy or sell), or withdraw from existing positions (buy or sell).
The stop loss order
The stop loss order refers to the order of the market price bill only when reaching the specified price, which can be used to create a new position or exit existing positions. The stop loss purchase refers to the purchase price of the buying price at the current market price when the market reaches the designated price or higher, and the purchase price must be higher than the current market price. The stop loss selling order means that when the market reaches the specified price or lower, the order of selling currency pairs at the market price must be lower than the current market price.
When you make a breakthrough, the stop loss order is usually used for admission
For example: Assuming the US dollar/Swiss franc to the resistance level, according to analysis, if you think that if you break through the resistance, the price will continue to rise. To deal with this view, you can issue a stop loss to pay at the position of several points above the resistance, so that you can trade for potential upward breakthroughs. If the price reaches or exceeds the price you designated, it will create a multi -header.
It if you want to trade on a downward breakthrough, you can also use stop loss orders. A stop loss order is issued at the position of several points below the support level, so that when the price reaches or lower than the price you specifies, the short position will be created.
The losses with stop loss orders
everyone will suffer losses from time to time, but what really affects the performance is the scale of loss and how to manage it. Before starting the transaction, you should already know where the market is not good for your position. One of the most effective ways to restrict losses is the pre -set stop loss order.
If you make more dollars/Swiss francs, you will want the currency to appreciate. In order to avoid unavailable losses, you can issue stop -loss selling orders at a certain price, so that when the specified price is reached, the position will be automatically closed.
Conversely, you can use stop loss to pay for short positions.
If the stop loss order to protect profitability
Once your transaction starts to make a profit, you may turn the stop loss single to the profit direction to protect some of your profit. For the long -headed bulls, you can transfer the stop -loss selling order from a loss area to a profitable area to prevent losses when the transaction does not meet the designated profit target and the market is unfavorable to your transactions. Similarly, for the short -term polyphony, you can transfer the stop loss order from a loss area to a profitable area to protect your profit.
The price limit list
. When you are only willing to create a new position at a specific price or higher price, or withdraw from the current position, you will issue a limited price. Only when the market reaches this price or better price, the order will be filled. The price limit purchase refers to the order of buying currency pairs at the market price when the market reaches a designated or lower price. This price must be lower than the current market price. The price -limited selling order refers to the order of selling currency pairs at the market price when the market reaches the price of you designated or has a higher price. This price must be higher than the current market price.
The price limit is usually used to enter the market for breakthroughs
When you think that currency prices will not successfully break through the resistance level or support level, you will fade out the transaction for breakthroughs. In other words, you expect that currency prices will fall from the resistance level, or rebound from the support level.
For example: Assuming that based on your analysis of the market, you think that the current rise of the US dollar/Swiss franc is unlikely to successfully break through the resistance level. Therefore, when the US dollar/Swiss franc rose to the closer resistance, you think this will be a good opportunity to short.
In order to use this theory, you can issue a limited price selling order at the position of several points below the resistance, so that when the market rises to the specified or higher price, your short order will be filled.
In addition to using a limited price single to short near the resistance, you can also use the price limited order near the support level. For example, if you think that the current decline of the US dollar/Swiss franc is likely to suspend and reverse and reverse it near a certain support position, then when the US dollar/Swiss franc falls near the support position, you may want to seize the opportunity to do more.
In this case, you can issue a limited price to pay at the position of several points above the support level, so that when the market falls to the specified or lower price, your order will be filled.
The profit target is set with a limited price single
before the transaction, you should already know what level you will make a profit if the transaction is running as expected. The price limit order allows you to leave the market at the pre -set profit target.
If you make multiple currency pairs, you will use a limited -selling order to set the profit target. If you are short, you should use a limited price to set up profitable targets. Please note that these orders only accept the price of profitable areas.
Predic order
has a clear understanding of different types of orders, which will enable you to use the correct tools to achieve the goal -how do you want to enter the venue (transaction or fade), and you will be you will be How to leave the field (profit and loss). Although there may be other types of orders, market prices, stop loss and limited price orders are the most common. You must use such tools proficiently, because it is not appropriate to execute orders to make you spend money.
In recent years, as more and more regular foreign exchange brokers have entered the domestic market, domestic investors have become more and more understanding the process of foreign exchange transactions. A-Book, B-Book, MM, STP, ECN These foreign exchange terms are also familiar with everyone. But where did the order of retail foreign exchange traders go? How is it in the market? Many traders do not know well. Today, I will talk to you about how foreign exchange brokers handle customer orders.
Whats of retail foreign exchange orders are processed in the broker?
If decentralized characteristics of the foreign exchange trading market itself, there is no concentrated trading venue in the foreign exchange market. Although some countries have internal foreign exchange transactions, global foreign exchange transactions are still the OTC market -based transactions. Essence In the foreign exchange trading market, the inter -bank foreign exchange market is an important part of it. Banks, central banks, investment funds, international financial institutions, and brokers have participated in it.
The inter -bank foreign exchange market has high requirements on the amount and transaction volume of participants, and requires advanced technology. Therefore, retail traders and speculators with small transaction volume cannot be sent directly to the inter -bank market.
. Therefore, at present, many retail foreign exchange brokers cannot sell small orders for retail customers directly to the inter -bank market for matching transactions. For brokers, the cost of this approach is too high; for banks, they I am not willing to receive such a small order. To achieve this goal, they must rely on the service providers of the intermediate institution, that is, foreign exchange brokers.
The operating models of our common foreign exchange transactions are MM, STP, ECN. Let's analyze how to run foreign exchange orders in different modes.
mm mode
mm mode
is also a market business model. The market business market generally contains two levels: one is the wholesale market between the market and the market business; the other is to be the retail market between the city merchants and traders. Retail marketors are usually companies that provide retail foreign exchange services to individual traders. Interbank institutions are usually banks or other large companies. They usually provide buying and selling quotations from other banks, institutions, ECN and even retail.
In in the retail market, when personal investors face a single market business inquiry transaction, they must consider the integrity of the dealers. Then add your profits to the customer.
The market quotes obtained from different dealers from different dealers are not the same. This is because the quotation of the dealer to the customer is the quotation after the profit. In addition to the difference in the cost, interest and commission costs from the customer's payment, the profit of the city merchants will also make risk returns earned by the loss of customers obtained in the market.
It does not stipulate how to hedge risk in relevant laws in the United States, so it depends entirely on the dealer's own risk control strategy. If the customer's order can be completely healed, the traders can hardly bear additional risks, and the benefits obtain are relatively stable, but in real life, it is difficult to have purely hedge.
The market business model plays an important role in improving the liquidity of the foreign exchange market, improving market transaction efficiency, transfer and sharing risk, and promoting market development. However, because the municipal businessmen may intervene in the transaction and become a trading opponent of investors, investors and potential interests in the market have potential interests during the order execution. Some non -compliant market makers may manipulate prices, either to prevent customers from being triggered, or to make transactions unable to achieve profitable targets.
stp mode
stp mode (Straight Through)
is also a direct processing system. However, it should be noted that the orders of customers in the retail market will not be directly input to the market between bank institutions under any circumstances. It replicates the customer's transaction for hedging by the dealer through mirror trading, so the customer’s position is still in the trading offices, while the trader is Pass passes to form a virtual "straight into the market" mode.
The STP model in the institutional market, because major institutions are used as marketers to trading their opponents by point -to -point ways. There are generally "GIVE-Up" protocols between merchants, which will hand over the transaction list with their own transactions to the opponent's substantial Prime Broker.
In STP mode, the dealer transferred the customer's order to the bank through mirror transactions. Suspension appears, which means that the order has been executed but still stays at the single window waiting for the appropriate price of the bank.
When transactions fluctuate frequently, it is very easy to have a number of orders waiting for processing. Too many orders will affect the bank's confirmation of some orders, and even refuse to match the order when the price does not match the price of the customer. In the STP model, because the bank is the main leader of the foreign exchange market, the quotation is closer to the market price, so it can ensure that customers' order transactions are maximized and entering the international foreign exchange market.
ecn mode
ecn mode
is also an electronic communication network mode. This model passes the orders from all customers to the international market for hedging. These large international markets have a large amount of funds, and there are also relevant departments to supervise them. Therefore, customers' funds are relatively safe.
and the domestic gambling platform has its own fund pool, but there is a big risk of this fund pool. Once there is a problem, investors may face the risk of unable to pay for money. In recent years, some platforms have also taken advantage of their funds when the customer has a large amount of funds.
ecn model is completed by close cooperation with banks, institutions, foreign exchange markets and technology suppliers. The orders and records of all transactions will be displayed online in a direct and anonymous manner. Each order is equally equally. Based on time and price priority, the transaction price is the actual market price.
In this perspective, the ECN model includes STP, and also includes a transaction model that truly realizes the orders of retail investors in the market or equivalent to the market. The domestic reality ECN operating mode refers to hundreds of liquidity providers in an ECN network. These liquidity providers pass the offer to the ECN at the same time. After that, ECN integrated all quotes, only showing the best purchase price and the best price, and formed a difference. The biggest advantage of
ecn mode is that the transparency is higher and can provide better offer. In this model, the customer's transaction opponent is not a dealer, but a customer in the bank, and the price changes are relatively frequent, so it is more conducive to transaction for ultra -short -term investors.
The banks and other related companies will provide customers with the best services as much as possible. At the same time, the quotation of the ECN model is more accurate. However, the ECN model is mainly aimed at institutional investors, and the threshold for account opening has high, which has stopped many small investors.
Source: part of the content comprehensive from financial and economic remittance.
1. I think this must be related to the formation of the country. The formation of the country, and the rulers have the power to issue currency issuance. Because there are different countries in the world, different currencies are issued. In a word, the country is different and the currency issued is different.
2. The country is different and the currency is different. If you want to trade between the country, you must exchange currency exchanges, which is one of the reasons for foreign exchange.
3. The difference in currency circulation between nationals has caused different values between currency.