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What is OTC (Over-The-Counter Trading) ? | ZFX

4. What is OTC?

Over-the-counter trading (OTC for short), also known as off-exchange trading, generally refers to trading activities not conducted on the central exchange, but through the “dealer network”

什么是差价合约 (CFD)?

5. What is Contract for Difference (CFD)?

CFD, or Contract for Difference, is a relatively new type of derivative in the financial markets, where investors can start trading after paying a small amount of margin to banks or brokers according to the agreement. Most CFD transactions cover a variety of financial assets and commodities, including forex, precious metals, energy, stocks, indexes and crypto currencies. In theory, investors can trade all “underlying assets” through the concept of CFD. 

What are the Trading Models in Forex? | Z Academy

6. Trading Models, What are they?

Retail foreign exchange trading has become popular since 2000. Comprising numerous forex brokers across the world, the ecosystem of this industry runs different types of trading models. These types of trading models have their unique names—DD, NDD, MM, STP, and ECN are among those commonly seen. 

什么经济数据最重要?财经日历对投资者的用处 | ZFX 山海证券

7. What are the most important economic data? 

Information that appears in the financial markets every day could possibly affect investors’ sentiments and market trend. Such information comes from different countries and large corporations, which is either compiled and disclosed by different institutes or to be released by some governments and central banks in some countries. 

Understand Foreign Exchange (FX / Forex) Market | Z Academy

8. Understand the Foreign Exchange (FX / Forex) Market

With the economic globalization, the interaction of economic activities among countries, including trade, tourism, consumption, and investment in various assets, becomes more and more frequent. In the process, currency transactions naturally occur. Forex / FX is the financial market which deals with currency transactions all over the world in a decentralized form.

What is Market Liquidity in Forex? | Z Academy

9. What is Market Liquidity in Forex?

Liquidity can be said to be the measure of the ability of an asset to convert into cash. The higher the liquidity of the asset is, the easier it is to be converted into cash, and it does not need to suffer too many unnecessary price losses due to supply and demand problems in a specific period of time.

Benefits of Forex Trading | Z Academy

10. Advantages of trading foreign currencies

Thanks to the advancement of information technology and the ubiquitous use of computers, trading foreign currencies (Foreign exchange, Forex) has become one of the main trades in the market. Forex trading’s popularity can be attributed to its own multiple advantages which attracted a great number of brokers who have been in the business for many years. Investors from all around the world can easily access to the information and news of the forex market.

Online forex trading vs foreign currency bank accounts | Z Academy

11.Online forex trading vs foreign currency bank accounts

Online forex trading is now very popular, that mainly in the way of margin trading. The most commonly seen method is for investors to open an account with a forex broker and deposit an initial capital, which is also deemed as so called “margin deposit”.

What are currency codes and symbols in Forex? | Z Academy

12.What is the Dollar Index in forex?

The Dollar Index measures the value of USD to see if the dollar is stronger or weaker against six other currencies. Acronyms of the Dollar Index in the financial market include USDX, DXY and DX—the trading code in Futures. USDX now includes Euro (EUR), Japanese Yen (JPY), British Pound (GBP), Canadian Dollar (CAD), Swedish Krona (SEK), and Swiss Franc (CHF). However, since Euro had not been launched when USDX was introduced, the index had a currency basket of ten currencies including Deutsche Mark, Italian Lira, French Franc, Dutch Guilder and Belgian Franc in the earlier years.

What is Reserve Currency? | Z Academy

13. What is reserve currency?

A reserve currency refers to foreign exchange reserves held by a central bank or financial institutions of a country. Constituting a certain ratio, foreign currency is an important part of foreign exchange reserves of a country. Foreign exchange reserves are used in international trading and investment as well as repayment of foreign debts owed by the government. On the issuance of local currency, foreign exchange reserves also serve as a basis of the currency’s level of confidence. Higher or lower foreign exchange reserves influence the stability of exchange rate of the local currency.