where to buy wholesale jewelry from china The principle of short currency
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where to buy wholesale jewelry from china The principle of short currency
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hair chain jewelry wholesale The short currency refers to some investors that one or more currencies will become worthless. In order to obtain benefits from this currency depreciation process, investors make various investments.
It, when it comes to currency investment, the currency exchange rate has to be mentioned. When providing materials exchange and international trade, various countries need to determine the price of goods. Within each country, the price of goods is marked by the state's legal currency. Therefore, during international trade, various countries need to formulate the exchange ratio between different currencies. This exchange ratio is the exchange rate.
If investors are not optimistic about currency A, they think the exchange price of currency A will fall. In other words, over time, the same amount of currency A can be exchanged for less and less. Then investors can take short currency A based on this judgment.
The entire investment process can be simplified into the following models:
(1) Investors borrow a large amount of assets from others, and agreed to return this asset in the form of currency A after a certain time. This asset can be represented by 10,000 currency A at this time, and after expiration, investors need to return 10,500 currency A.
(2) Investors use this asset as an investment, or convert it into physical objects that will not depreciate and easy to monetize. It can also be converted to other currencies that will not depreciate.
(3) Before the agreed time, currency A has depreciated, and the actual value of currency can be reduced. As long as at this time, the actual value of 10,500 currency A is lower than the value of the assets borrowed at the beginning. After returning the arrears, investors can
to earn the corresponding difference.
[Expanded information]
Ilastic short (Short Sale) is an investment term and a operating mode of financial assets. In contrast to do, short -term borrowing assets, and then selling cash to sell. After a period of time, the assets of buying the target of expenditure cash will be returned.
Illow production is a common way of operation of the stock futures market. The operation is that there will be a decline in the expected stock futures market. Essence