Forex Trading In China • Forex Strategies • Benzinga
According to global gross domestic product (GDP) rankings, China is the 2nd largest economy in the world. As a hotbed of international imports and exports, China’s currency, the yuan, is involved in significant commercial activity. If you’re interested in becoming a forex trader from China, read on to find out more about trading currencies.
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According to global gross domestic product (GDP) rankings, China is the 2ndlargest economy in the world. As a hotbed of international imports and exports, China’s currency, the yuan, is involved in significant commercial activity. If you’re interested in becoming a forex trader from China, read on to find out more about trading currencies.
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Get Started with Forex in China
After the People’s Bank of China was established in 1948, it issued the yuan (CNY) as the official currency of China. The yuan takes its roots from the Chinese word that originally meant a lump of silver.
The Chinese yuan can be further divided into 10 jiaos. It has denominations of 1, 2, 5, 10, 20, 50 and 100 yuans. These banknotes have the portrait of Mao Zedong imprinted on each of them. Mao Zedong was a communist revolutionary and the founding father of China.
The main imports to China are iron, steel, plastics and organic chemicals. The main exports from China are rice, electronics, cars and fashion apparel. Due to massive imports and exports, the Chinese yuan has become among the most commercially significant currencies in the world. The People’s Bank of China (PBoC) currently holds the highest financial assets among public financial institutions around the globe. It has over $1.3 trillion worth of treasury bills.
Here’s a step-by-step guide to help you get started with forex trading in China.
Step 1: Get a digital device with fast internet connectivity.
You can use your desktop, laptop, tablet or smartphone to trade forex. The value of the currency pairs listed frequently fluctuate. Having a personal device to constantly track these changes is essential to successful forex trading.
Step 2: Find an online forex broker.
There are quite a few forex brokers available online. Go through their websites and choose a broker that lets you trade the currency pairs you are most interested in.
Be sure to check the footer of their website for information on the regulatory bodies. If you can’t find any such information from the U.S. Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) or other regulatory bodies, the broker can’t be trusted.
Step 3: Sign up for an account.
You can open a new account with the forex broker on their website. Some forex brokers require a minimum deposit amount to open an account. These brokers also offer different kinds of accounts based on your initial deposit size and other factors. Choose the broker and account type that’s right for you.
Step 4: Transfer funds to your account.
Once you’ve signed up for an account, you need to transfer funds to start trading forex on margin. Depending on the broker you’ve chosen, you can choose your accounting currency and fund your account using several options. Generally, these funding options include bank wire transfers, net banking and debit cards.
Step 5: Download a forex trading platform.
You need to download a forex trading platform supported by your chosen broker on your computer or smartphone. Take the time to customize the look and feel of the platform to help you maximize your potential to spot good forex trading opportunities.
Step 6: Begin your forex trading journey.
Before you start trading forex, you might want to trade in a demo account using virtual money. These accounts can help you get used to the interface of the forex broker without losing any real money. After you feel confident using the platform and with the success of your chosen strategy, you can start trading forex in a live account.
Chinese Forex Trading Strategies
Experienced forex traders rely on tested strategies to help them make bigger profits and cut their losses before they become problematic.
These forex trading strategies can include the following:
Range trading is a strategy that involves identifying a set of similar highs and similar lows for a specific forex currency pair. You can look at the past performance of a currency pair and monitor its exchange rate movements to spot consistent levels that the dips and peaks occur at. Range traders then aim to buy near the dips and sell near the peak values.
Position or trend traders typically have a longer-term outlook on the exchange rates of the forex currency pairs they trade. This method of trading requires you to take a position in your chosen forex currency pairs and wait until there is a significant rise in their exchange rate. With this strategy, you can look past minor daily changes in exchange rates as long as the underlying direction of the market remains consistent with your position. It can take months or even years before you close out a position but the profits made from winning positions tend to be significant.
Scalping is a short-term forex trading strategy that involves making multiple trades, often within minutes, to profit from small movements in the market. This strategy is time-consuming and rapidly tracking market changes is critical to make it work. If you’re not fast enough with your trades, you may not get in or out in time to be profitable. You may also encounter order slippage that can significantly eat away at your profits.
Day trading is a forex trading strategy that generally involves exiting all your positions by the end of the day. This strategy is suitable for short-term traders who have the time to regularly monitor the market. You can trade as little as once or twice per day and have the benefit of avoiding any major exchange rate volatility seen overnight when you cannot monitor the market.
It can be hard to find lucrative forex trading opportunities in 1 or 2 days. Swing traders operate by identifying market upswings and downswings where momentum is waning and a reversal, therefore, seems likely. This short- to mid-term forex strategy can help you profit from both rises and declines with an overall trend.
Forex Trading Example in China
You can earn significant profits in a short time by trading forex in China.
For example, let’s say the forex currency pair USD/CNY is trading at 7.0003. At that exchange rate, it will cost you 7.0003 yuan to buy 1 U.S. dollar. You can buy $100,000 of the USD/CNY currency pair on margin in your trading account. After 1 month, the exchange rate of the USD/CNY currency pair reaches 7.1800. You can sell your $100,000 position and earn a profit of 17,970 yuan.
In recent times, the price of the currency pair USD/CNY has been fluctuating. In the last 52 weeks, the USD/CNY currency pair has dipped to a low of 6.8405 and risen to a high of 7.1876. This volatility has given traders several profitable entry and exit positions for trading that currency pair. For example, when the USD/CNY exchange rate dropped below the $7 mark in March 2020, traders started rigorously buying the currency pair while the exchange rate was low.
Best Online Forex Brokers in China
Online forex brokers let you trade a variety of currency pairs in the forex market. You can easily manage your trading positions on your broker’s supported trading platforms. Most of these forex brokers allow you the luxury of trading commission-free. You generally also trade forex currency pairs on margin using these online platforms.
HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.
HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service.
Investors who want a customizable fee schedule
Traders comfortable using the MetaTrader platform
Islamic traders who need swap-free accounts that don’t build interest
Wide range of currency pairs available
Excellent selection of educational tools
$0 deposit and withdrawal fees
Not currently available to traders based in the U.S.
100 of your selected base currency
100 of your selected base currency
1 Minute Review
FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.
MetaTrader 4 users
Beginner forex traders
Active forex traders
Impressive, easy-to-navigate platform
Wide range of education and research tools
Access to over 80 currencies to buy and sell
Leverage available up to 50:1
Cannot buy and sell other securities (like stocks and bonds)
Confusing margin requirements that vary by currency
Limited customer support options
Cannot open an IRA or other retirement account
1 Minute Review
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
International Forex/CFD Traders
New cryptocurrency traders looking for an easy-to-use platform
Traders who want to buy and sell cryptocurrencies on-the-go
Simple platform that is easy to master
CopyTrader feature that allows new traders to copy the same strategies used by professionals
Virtual dummy account that gives you $100,000 to practice trades
U.S. traders currently limited to cryptocurrencies
Only 15 major coins available to trade
1 Minute Review
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
Traders looking for a well-diversified portfolio
Controlled by regulatory agencies of multiple countries
Choice offered in terms of trading platforms
Support available in 14 languages and trading platforms in 20 languages
Practice/demo account available for trying out
Breadth of trading assets
Does not accept customers from the U.S. as it isn’t regulated in the U.S.
Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
You should be familiar with a few basic forex terms before you start trading. Many forex traders use these terms regularly during intraday trading sessions.
Pip: The smallest unit of exchange rate movement in a particular currency pair. In most cases, forex currency pips are the 4th decimal point or 0.0001 of a currency pair’s quoted exchange rate.
Lot size: The lot size is a standardized trading amount usually equal to 100,000 base currency units. You can also buy and sell currency pairs in smaller lot sizes at some online brokers.
Orders: An order is a command you make to your broker to execute a trade either at the market or when certain conditions are met.
Margin calls: A notice from your broker that you need to deposit additional funds in your margin account to continue to hold your existing positions. Most online forex brokers will automatically close out your positions if this situation arises instead of issuing a margin call.
Yield Better Returns by Trading Chinese Yuans
China has experienced substantial friction in its trade situation with the United States — the USD/CNY exchange rate remains subject to news of trade talks between the countries. Nevertheless, China has developed strong relationships with some of its other trading partners, such as Australia, Hong Kong, South Korea and Germany that could underpin the yuan in the near future against the national currencies of those countries.
In any case, forex traders from China can buy and sell virtually any common currency pair via a top online broker, so open an account with one today if you’d like to try your hand at forex trading.
EOS is a cryptocurrency that was introduced in 2017 and is based on blockchain and smart contracts. Its key features are scalability, decentralized apps, and huge throughput (a few million transaction per second).
This is another step towards developing our crypto portfolio.
Our clients do value the flexibility and state of the art technologies we offer them As for us, our mission is meeting their expectations and constantly improving the trading conditions by opening the door to new instruments and opportunities.
says Denis Golomedov, ;Marketing Director at RoboForex.
Roboforex and Cryptocurrency
This Broker has been on the forefront of crypto trading on the Metatrader 4 and Metatrader trading platforms from the beginning and pushing for more and more trad-able assets to be added to their offering .
it took this broker a little bit of time but now that they got them selves into the cryptocurrency trading arena they come to lead the pack. this in combination with their the trading platforms they are offering makes this a broker to take notice of.
as yet there are not enough brokers that offer metatrader 5 and especially one where you are able to trade bitcoin ethereum, litecoin and now also EOS.
RoboForex is a brokerage company catering to clients from various countries. The broker’s focus is providing the traders with access to its own financial market platforms.
RoboForex Ltd is a licensed company (License No. IFSC/60/271/TS/17).
Indicted: Local bitcoin Trader Jailed for Money Laundering
Local Bitcoin trader, Theresa Lynn Tetley, also widely known as Bitcoin Maven has been indicted for indulging in illegal bitcoin-for-cash transactions. According to the Central District of California, the LocalBitcoins.com trader has been sentenced to 12 months in prison.
She has also been handed a three-year supervised release and a $20,000 fine. A former real estate investor and stockbroker, the court ordered her to relinquish $292,264.00 in cash, 25 assorted gold bars, and 40 bitcoin.
money launderingTetley pled guilty to one count of operating an unlicensed money exchange business, and another related to money laundering. Her case is the first of its kind in the Central District of California.
Tetley was procedurally supposed to register her business with the Financial Crimes Enforcement Network, an agency of the United States Department of the Treasury.
The agency is responsible for analyzing transactions to curb money laundering and related financial crimes. She also failed to implement standard anti-money laundering protocol, including reporting of certain financial sources as per the requirements of this type of business.
Tetley is said to have traded over $6 million for clients within the United States and charged higher rates as compared to other traders within the LocalBitcoins platform.
Also noted in the court documents was that Theresa Lynn laundered bitcoin for a customer who had been suspected of having acquired the cryptocurrency through illegal activities, including drug sales on the dark web.
She also carried out a bitcoin to cash transaction for an undercover agent who had explicitly declared that his bitcoin was tied to narco-trafficking operations.
According to the report, Tetley’s service was responsible for fueling the growing use of cryptocurrencies to launder money and supported a black market system set up purposely to circumvent the law.
The organizations involved in her investigation included the IRS Criminal Investigation and the Drug Enforcement Administration.
Just One of Many
That said, the government has been committing significant resources to counter the crypto – dark web menace, and earlier this month, a major sting operation was carried out against a major money laundering network. Thirty-five suspects were arrested.
One individual, identified as John Edward Monette, was charged with Conspiracy to Distribute a Controlled Substance. He was also alleged to have carried out numerous bitcoin for cash exchange transactions on the dark web, most of them in 2017 and totaling about $19,000.
Another dark web vendor busted during the operation, Ryan Farace, 34 was indicted for being involved in an alprazolam tablets manufacture and distribution scheme.
He sold the drugs on the dark web, with all transactions being made in bitcoin. Additional digital currency money laundering transactions were made to conceal the sources.
Blockchain tech – so revolutionary in nature that some are calling it the “new internet.” It has applications in just about every industry, and has completely altered the way we think about internet security, the processing of information, and the speed of transactions.
Blockchain is the technology that supports the digital currency or cryptocurrency called Bitcoin –
however this is not what it is really about as it has a far wider scope of applications and is being commercialized in a growing number of areas.
It has generated much interest in technology circles and beyond, because of the new possibilities it opens up in financial services, the public sector and other areas.
According to sites like BitFortune.net, blockchain tech is definitely worth keeping an eye on due to the myriad of benefits it provides.
Blockchain and Bitcoin are not the same thing – Bitcoin is implemented using blockchain technology, but blockchain technology can be used in contexts much wider than Bitcoin or other cryptocurrencies. so when we are talking about the blockchain we are talking about a combination of a number of technologies, these including:
The blockchain data structure.
Public key cryptography.
Part of what makes it so exciting is that it is completely open source. As a result, there are already a number of interesting blockchain apps, and the number is growing daily.
The technology is so secure that it is already being used by DARPA to secure military data. Various governments around the world are working on ways to use the tech to protect their own data.
The tech is tamper-proof, and the data stored within it is permanent. It cannot be erased or altered, and this is what makes it so enticing to those needing more secure networks.
But there is more, folks. (Okay, so that sounds a bit like an infomercial, but the benefits are real nonetheless.) Transactions can speed across the network – taking only as much time as it takes for them to be authorized.
The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.
The system runs without the need for an intermediary, and this reduces the time it takes to execute transactions. This, and the unique way that the tech works, means that costs are significantly reduced as well.
What makes it so revolutionary is that the information is spread across every computer within the network. With Bitcoin, that means the data is securely “backed up” over thousands of computers.
Now, it is unlikely that banks will entrust their data to a public network in the same way, but they have been working on creating networks of their own instead.
The potential savings in terms of cost and time are extensive. If you want to learn more about these savings, check out the infographic below.
Why You Need to Get Onboard With Blockchain!
Why You Need to Get Onboard With Blockchain!
Visit bitfortune.net . for more interesting Infographics