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Analysis of foreign exchange position adjustment

For speculators, cashbackforexexness the cashbackforexbroker forex rebate club market transactions, must have heard of the position adjustment problem in foreign exchange knowledge, foreign exchange position related content for speculators, forexrebateclub very important foreign exchange position adjustment in the end will be how? What is the impact? Today we will understand in detail in the previous explanation, we already know about the technical analysis of the content of the foreign exchange market transactions, of course, it is more use of bar graphs to analyze, but also the use of K-line patterns to analyze the recognition of foreign exchange position adjustment we should first understand what is the position foreign exchange bank with customers or other foreign exchange transactions occur, the difference between the debt and debt denominated in foreign currency is called Once the foreign exchange position of such claims, debts between the imbalance phenomenon, the bank should bear the foreign exchange risk, while facing the capital (RMB, foreign currency) surplus, shortage problems and affect the normal operation of banks Japans monetary authorities (Ministry of Finance, the Bank of Japan), although in June 1984, according to the Japan-US "yen and dollar reconciliation committee" agreement, abolished the yen conversion system. Therefore, each foreign exchange bank from the above needs, in order to control the position within a certain range and make the following adjustments, for example, when there is a shortage of U.S. cashback forex position, we have to buy U.S. dollars with Japanese yen to eliminate U.S. dollar debt, and vice versa, when there is a long surplus of U.S. dollars position, we will sell U.S. dollars. When, on the sale of dollars this adjustment is called foreign exchange position adjustment foreign exchange position adjustment, the exchange rate also has a great impact because, this adjustment will make foreign exchange transactions change direction that is, when foreign exchange transactions tend to sell dollars to buy yen, the bank by buying dollars, sell yen to improve the value of the dollar, so that traders in turn to buy dollars, and vice versa, to sell dollars, buy yen to adjust the exchange rate Tokyo market There are also position limits, therefore, in the end of each days transactions, are to adjust positions, especially to the weekend (Friday), because it is difficult to predict the next weeks exchange rate, and therefore most banks have to maintain a balance of buying and selling (i.e., the amount of rollover) to eliminate foreign exchange risk, so the foreign exchange market appears to be particularly busy (Monday, too) in judging the trend of exchange rates, but also to the market in the accumulated amount of positions as an important basis Not only consider the foreign exchange banks position, but also consider the Chicago foreign exchange speculator as the representative of the overseas speculator holds the dollar long surplus or shortage position amount to decide to adjust the position program Therefore, when predicting the exchange rate, at the same time consider this adjustment position movement In addition, adjust the position also according to the foreign exchange demand related seasonal factors (SeasonalFluctuation), as well as institutional aspects For example, at the end of the year, banks temporarily withdraw funds from overseas to increase deposits or make reserve payments during WindowDressing in order to adjust positions. The exchange rate is no longer subject to large fluctuations due to position adjustments

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