Is it risky to buy foreign exchange?

First of all, to be clear, buying foreign exchange is extremely risky. Why do you say that?

There are three main points:

1, there are too many black platforms, and it is likely to lose everything;

2. China does not allow individuals to speculate in foreign exchange, and there is nowhere to ask for help if something goes wrong;

3, foreign exchange can be highly leveraged, fluctuating greatly, and it is easy to break out if it is not done well;

What is foreign exchange?

First, we need to know what foreign exchange is. Know clearly before deciding whether to participate. Foreign exchange is very simple, which mainly refers to the exchange rate exchange between currencies, such as RMB against US dollar, US dollar against Canadian dollar and Canadian dollar against Australian dollar. The exchange rate is not fixed, and the trading time is 24 hours. Foreign exchange trading, whether it is profit or loss, comes from the whole international market, and the profit and loss come from the international market, so foreign exchange trading can only be profitable through technical analysis.

There is a saying that refers to the contempt chain of the investment circle: those who play digital currency look down on those who play foreign exchange; Those who play foreign exchange look down on those who play futures; Those who play futures look down on those who play stocks; Those who play stocks look down on those who buy funds; Those who buy funds look down on those who deposit Alipay; Those who deposit Alipay look down on those who deposit in banks;

If stocks are trucks and futures are cars, then foreign exchange is a sports car. The biggest feature of a sports car is that it runs fast, but "the speed limit in China is high". So in China, we can see thousands of stocks and futures funds, with stocks the most, followed by futures, but you can't see a foreign exchange fund. (Not supported by policy)

There are too many black platforms. In recent years, many people have been robbed, and there is no law to help you protect your rights, because speculating in foreign exchange is illegal in China, and the consequences are at your own risk. (objective environment)

Finally, talk about technical risk and liquidity risk. This is a global market. Whether your orders and transactions are smooth or not depends on many factors and is also influenced by the policies of countries around the world. A little carelessness is a loss. Counterparty risk: As individual investors, we are faced with individuals, institutions and countries in the market. There will be a gap in professionalism, which will test the vision, mentality and technical analysis ability of individual investors. (personal ability)

Therefore, the risk of speculating in foreign exchange is extremely high. Before you are ready, you must be careful to enter the market.