Use of the international capital flows, make your foreign exchange trading profits

In order to seek some economic purpose, the international capital will in each market occurs frequently between the transfer, this also is the international flow of capital one of the main ways. In the floating exchange rate system, capital flow (especially short term capital flow) can make a volatile currency exchange rate increases the range or abate. Whether by currency exchange rate fluctuations or be more stable, international financial flows of the ultimate aim is to seek profits. The higher profits, the money went to there flow.

In the current personal foreign exchange transactions, if you buy, sell currency and international capital flow direction is consistent with it, then you will get bigger profits. So individual traders should pay close attention to the direction of the flow between international capital.

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In the present international foreign exchange market, the most common capital flow mainly displays in the following aspects:

A, trade capital flow. Generally refers to exporters, importers in the buying and selling of goods happened in the capital flow.

Second, the bank capital flow. On one hand, the bank of the business needs, such as arbitrage, arbitrage, empty positions offset, such as on the positions; On the other hand, but also in terms of its central Banks or it their currencies rise or fall too, in the foreign exchange market intervention and use of the money. Now in early January, the bank of Japan to prevent the yen appreciation hit the 100 mark, in at 102 to the dollar near, heavy selling yen. That the Japanese yen in the February 22 fall to lowest point this year one dollar to 111.73 yen, the Japanese yen fell nearly 10%.

Three, value capital flow. This part of the capital flow displays in:

1. Hedge funds. Due to a region, a volatile political situation instability, cause capital outflows, graph security. If the kosovo crisis in Europe last year, the fund wantonly contributed to selling euros. This is also a weaker euro caused one of the factors.

2. Currency value funds. This part of the general investment funds in higher currency, namely funds from low interest rates inflows currency higher interest rates, currency will be high market favour and adored, such as dollars, pounds sterling, etc. At the same time the country of payments, fiscal policy will lead to this part of the good and the flow of funds.

Four, speculative capital flows. This part of the capital flow of currency exchange rate fluctuation has enormous influence, is also the fastest flow frequency. Such as October 7, 1998 morning Tokyo plate for the yen at 128 to the dollar, but in the day of night the European market, the yen rose to the highest one dollar to 111.70 yen, single day rose nearly 13%.

This shows speculative international currency markets in what is a role. Investors how to grasp the trend of international mainstream capital?

1. To understand all sorts of relevant international financial market, investment markets. If the stock market: including the word of the United States? Jones index, the nasdaq index, Hong Kong's hang seng index, Japan's nikkei index, and so on. The major countries in the world of the bond market, gold and oil prices, and related products, such as the futures market.

2. Want to hold the market of capital between the flow. Such as international stock market and trading of capital between the flow.

3. To identify the Lord, times have international capital flow ability of flow.

4. Should have certain analysis tool (analysis software) as the foundation. Such as technology office, instant messaging, instant trading market prices, and the relevant economic data