Principles of Foreign Exchange Investment and Practical Skills Beginner's Tutorial

Author: Wang Lüzhi (Editor)
Publisher:
Publish Date: 2005-03-01
Features:
In today's increasingly globalized world economy, whether we are willing to face it or not, foreign exchange trading is becoming closer to us! It is penetrating our lives through various ways and channels: personal travel, international exchanges, international trade, foreign exchange deposits, and banks' foreign currency business—all of these are inseparable from foreign exchange trading or the challenges of preserving and appreciating foreign exchange assets. Because of this reason, foreign exchange trading, as a highly specialized profession, has become even more significant in the face of prominent employment issues for college students and other individuals today.
With the improvement of China's opening-up, the development of various international financial businesses, and the growing demand for professionals with expertise in foreign exchange, the financial industry is experiencing a rapid increase in its need for such talent. In the complex application techniques of various financial products, especially derivative financial products, offered by contemporary international large-scale professional banks, we can deeply feel the immense challenges and crises. The Southeast Asian financial crisis, which took place on China's doorstep and attracted worldwide attention, vividly demonstrated this crisis—like a tsunami, the surging waves of finance areing the country! China, are you ready?!
Let's look at the facts: As of the end of September 2004, China's foreign exchange reserves reached a record high of $514.5 billion. In reality, the new round of US dollar depreciation began as early as 2002, and so far, the exchange rate of the US dollar against the euro has dropped by more than 40% from its peak, while the exchange rate of the US dollar against the Japanese yen has also declined by about 20% from its recent high. Moreover, multiple forecasts agree that this trend will likely persist in the long term. Under such circumstances, the sharp decline in the US dollar will inevitably cause significant losses to China, which holds a massive amount of US dollar reserves. Faced with the growing risk of the US dollar's sharp decline, China is almost in a dilemma, with no easy choices available.
What are the reasons for this situation? We believe that a significant factor lies in the shortage of foreign exchange professionals in China's financial industry. The historical mission has fallen on the shoulders of this generation, and more so, it is an inescapable responsibility for higher education institutions. As early as several years ago, the Pinghe International Group, a highly influential financial group in Hong Kong, demonstrated foresight by making a decision unlike that of ordinary financial groups. They invested substantial resources and found a perfect match with the author of this book, who was experimenting with a new teaching model at Chengdu University of Technology. Through in-depth cooperation, they pioneered the attempt to conduct practical foreign exchange teaching in domestic universities, which has now expanded to collaboration with three universities. With the establishment of the "Pinghe International Financial Research Center" registered in Hong Kong, the plan is to achieve cooperation with ten domestic universities within 2005, enabling these institutions to conduct a foreign exchange professional education model based on practical teaching, rather than the conventional teaching model. This has opened up a completely new field for China's financial professional education.
The author of this book, Mr. Wang Lüzhi, not only has years of teaching experience in higher education but also extensive work experience in multiple industries, including finance. He possesses a richer academic research background than most people: after studying physics and management engineering in college, he gained unique insights and achievements in various fields such as securities, futures, foreign exchange, management engineering, computer software, philosophy, and even the study of the I Ching. His original "Micro-Economic Environment Diversified Driving Teaching Model" has won the First Prize in the 2004 Sichuan Provincial Teaching Achievement Award.
What is even more commendable is that amid his busy teaching and curriculum reform work, he has written a distinctive foreign exchange practical teaching textbook, which is truly admirable.
We thank the author, Pinghe International Group, and China Financial Publishing House for this book.
This book mainly includes two parts: the theory of the foreign exchange trading market and foreign exchange trading practical skills. It starts from the ABC of the foreign exchange market and gradually delves deeper, making it suitable as a teaching material for financial majors in higher education institutions, as well as a professional reference book for general investors and employees in the financial industry. Therefore, it is particularly suitable for beginners in five groups:
1. Foreign exchange investors
Whether you have theoretical and practical experience or not, whether you trade spot foreign exchange in banks or leverage margin trading through brokers, you can find what you need in this book.
2. Foreign exchange investment brokers
Foreign exchange investment brokers need to have a deeper understanding of the market compared to general investors.
3. Bank foreign exchange business managers and general bank foreign exchange staff
If a bank foreign exchange business manager does not involve fund operations, their focus should be on the [specific sections of the book].
4. Bank foreign exchange investment department managers and financial investment students
Due to their learning and work nature, these individuals have the heaviest learning tasks among the groups and need to fully master the content of this book.
5. Others
If you have higher learning requirements, you can look forward to the upcoming intermediate and advanced tutorials in this series.