What are the forms of foreign exchange rates and what are the main characteristics

The so-called foreign exchange refers to all assets owned by a country that are denominated in foreign currencies. There are many ways to classify foreign exchange, and for investors, they don't need to know all the foreign exchange classifications, as long as they know more about the main classification methods of foreign exchange.

1) Classified according to the degree of restriction, there are generally three types, namely freely convertible foreign exchange, limited free convertible foreign exchange and booked foreign exchange.

Freely convertible foreign exchange is the foreign exchange that is most used in international settlement, can be freely bought and sold in the international financial market, can be used to pay off claims and debts in international finance, and can be freely exchanged for the currencies of other countries.

Limited free convertibility of foreign exchange refers to foreign exchange that cannot be freely converted into other currencies or paid to a third country without the approval of the currency issuing country. Therefore, the foreign exchange is subject to conversion restrictions to a certain extent, and most of the national currencies belong to limited free convertibility currencies, even the renminbi, which also belongs to this category.

Bookkeeping foreign exchange, also known as clearing foreign exchange or bilateral foreign exchange, cannot be exchanged for other currencies, and at the same time, it cannot be used for payment operations in third countries.

2) According to the classification of ** use, foreign exchange can be divided into three types, including ** foreign exchange, non-** foreign exchange and financial foreign exchange.

Foreign exchange, also known as physical foreign exchange, refers to foreign exchange that is used for import and export, and is also an international means of payment formed by the international circulation of commodities.

Non-foreign exchange refers to all foreign exchange other than foreign exchange, that is, all foreign exchange that is not used for import and export, such as foreign exchange for labor services, overseas Chinese remittances and donated foreign exchange.

Financial foreign exchange is different from **foreign exchange and non** foreign exchange. How to understand this type of Forex? The most typical example of the so-called financial foreign exchange is the foreign exchange traded between banks, which is neither tangible or intangible, nor is it used for tangible, and the role of this foreign exchange is for the management and manipulation of various currency positions.

There are 7 classifications. 1. According to the different buying and selling positions, the exchange rate can be divided into ** price and selling price.

2. According to the different types of exchange parties, it is divided into telegraphic transfer exchange rate, postal exchange rate, bill exchange rate and cash exchange rate; The telegram exchange rate is the exchange rate used for telegram remittances. Due to the fast speed of wire transfer payment, which accounts for a large proportion of foreign exchange transactions, the wire transfer exchange rate has become the basic exchange rate of the international financial market.

3. According to the different delivery dates, it can be divided into spot exchange rate and forward exchange rate; The spot rate is the exchange rate used for spot foreign exchange transactions, and the wire transfer rate is the spot rate. The forward rate is the exchange rate used in forward foreign exchange transactions, and it is an exchange rate of an appointment nature.

4. According to the different calculation methods, it can be divided into benchmark exchange rate, arbitrage exchange rate and arbitrage exchange rate.

5. According to the different degrees of foreign exchange control, it can be divided into official exchange rate and market exchange rate.

6. According to the nature of foreign exchange funds, it can be divided into ** exchange rate and financial exchange rate.

7. According to the different trading hours, it is divided into the opening price and the ** price. The opening price refers to the first ** after the opening of the day, and the ** price refers to the price at which the last trade of the day was traded.

What is Forex? What types are included? Foreign exchange is a certificate of payment for international settlements expressed in foreign exchange.

The International Monetary Organization's description of foreign exchange is that foreign exchange can be used when the balance of payments deficit is maintained by monetary administrations (**banks, monetary institutions, foreign exchange standards** and the Ministry of Finance) in the form of bank deposits, treasury bills of the Ministry of Finance, long-term ****. Including foreign currency, foreign currency deposits, foreign currency valuable** (**public bonds, treasury bills, corporate bonds, **, etc.), foreign currency payment certificates (bills, bank deposit certificates, postal savings certificates, etc.).

The main features of the forex market are:

1. There is no market.

The financial industry in Europe and other Western countries basically has two sets of systems, namely, the first-class operation of centralized trading and the business network without a unified fixed place. **Buying and selling is done through exchanges.

For example, the New York Stock Exchange, the London Stock Exchange, and the Tokyo Stock Exchange are the main trading venues of the United States, the United Kingdom, and Japan, respectively, and the financial products that are traded in a centralized manner have unified regulations on their trading hours, trading hours, and settlement procedures, and have established an industry association and formulated a code of conduct for the industry.

Investors buy and sell the commodities they need through brokerage firms, which is called "there is a market". Foreign exchange trading is carried out through a network of merchants who do not have a unified operation market, unlike ** transactions that have a centralized and unified location. However, the network of foreign exchange trading is global, and has formed an unorganized organization, the market is connected by a way that everyone agrees with and an advanced information system, and the dealer does not have any membership of the organization, but must gain the trust and recognition of the industry.

This kind of foreign exchange market without a unified venue is called "market without market". The global forex market trades an average of trillions of dollars per day. Such a huge amount of money is to complete the liquidation and transfer under the control of this kind of centralized place and clearing system, and without the supervision of the first place.

2. Cycle operation.

Due to the different geographical locations of the world's financial centers, the Asian market, the European market, and the American market have become a global foreign exchange market that operates continuously 24 hours a day due to the time difference. The New York market opens at 8:30 a.m. (New York time), the Chicago market opens at 9:30 a.m., the San Francisco market opens at 10:30 a.m., the Sydney market opens at 6:30 p.m., Tokyo opens at 7:30 p.m., Hong Kong and Singapore open at 8:30 p.m., Frankfurt opens at 2:30 a.m., and the London market opens at 3:30 a.m.

Running 24 hours a day, the forex market becomes a day and night market, only for a week.

6. The foreign exchange market will be closed on Sundays and major holidays in various countries. This continuous operation provides investors with an ideal investment place without time and space barriers, and investors can find the best time to trade.

For example, if an investor buys yen in the New York market in the morning, and the yen rises after the Hong Kong market opens in the evening, and the investor sells in the Hong Kong market, regardless of whether the investor is in **, he can participate in any market and buy and sell at any time. Therefore, the forex market can be said to be a market without time and space barriers.

3. Zero-sum game.

In the market, a certain ** or the whole ** market rises or falls, then, the value of a certain ** or the ** value of the whole ** ticket market will also rise or fall, such as the **** of Nippon Steel.

800 yen** to 400 yen, so that the value of all Nippon Steel** is also halved.

Foreign exchange has the following three characteristics: first, it must be an asset expressed in a foreign currency; Second, it must be convertible, and third, it must be a monetary claim that can be repaid abroad.

1. Non-local currency attributes.

2. General acceptance.

3. Compensability. 4. Convertibility.

The contents of International Finance Theory and Practice (2nd Edition) are:

1. Internationality. 2. Convertibility.

3. Solvency.

The main forex currency pairs are the following currencies:

1. U.S. dollar (USD): It is the currency unit of the United States. More than 80% of international** and foreign exchange transactions are denominated in the U.S. dollar. The U.S. dollar is the most active currency and occupies an absolutely important position in the international** and financial arena.

2. Euro (EUR): It is the unified currency of the European Monetary Union. With more than a dozen member countries and a population of more than 300 million, the euro has the same strength as the dollar.

3. British pound (GBP): is the currency unit of the United Kingdom. After the Bretton Woods Conference in 1944, the US dollar replaced the British pound as the world's financial supremacy, and now the British pound has become the third largest reserve currency in the world.

4. Japanese Yen (JPY): It is the currency unit of Japan. In terms of economic and trade relations, Japan's surplus mainly comes from the United States, and the United States' foreign trade mainly comes from Japan. The Japanese yen remains the most important currency in Asia.

The main currency pairs in foreign exchange are still dominated by Europe and the United States, and Huichacha lists three popular currency pairs and their characteristics

As we all know, EUR USD is the most traded currency pair on the Forex market. As a result, it is also the major currency pair with the lowest spreads. Its features include:

1.Vulnerable to news events such as NFP, the Federal Open Market Committee (FOMC), quantitative easing, and political activity in the Eurozone;

2.The maximum volatility is achieved during the London trading session, but usually there is not much movement in a trading day;

3.Its daily consolidation is average;

4.For most of the trading day, EUR USD is on one side** and usually retraces at the Fibonacci level with a large value.

GBP USD is generally known for being highly volatile and volatile. Its features include:

1.The most volatile is during the London trading session: at the opening, volatility is noticeable and there are often false breakouts;

2.Likes to test at support and resistance levels: often retraces at Fibonacci levels with large values, such as;

3.The intraday consolidation is usually large: this is a pair that likes to go against the trend**, in this case it is suitable for making a reversal;

4.susceptible to news events such as the NFP, FOMC, quantitative easing, and political activity in the Eurozone;

5.The initial stage of a reversal is usually very unstable, with a lot of tweaks and a slow process.

USD JPY is another currency pair that has been heavily affected by major US dollar news. Its features include:

1.When it is in a state of consolidation, the speed of its movement slows down significantly, and the consolidation is usually small;

2.When in a major trend, it usually continues the trend without a large pullback, only a smaller bearish or bullish breakout;

3.In a one-sided **, it often retraces at the Fibonacci level.

There are two types of currency pairs in Forex: straight currency pairs and cross currency pairs.

Straight currency pairs are directly linked to the US dollar, such as: USDCAD, USDJPY, USDCHF, USD/EUR, USDGBP, USD/AUD, etc.

On the other hand, what is not pegged to the US dollar is a cross, such as EUR against the British pound, AUD against the Japanese yen, EUR against the Japanese yen, EUR against the Swiss franc, British pound against the Japanese yen, and the British pound against the Swiss franc.

There are roughly 7 forex currency pairs with the largest daily trading frequency and trading volume, which are:

1. Euro US Dollar EURUSD: The euro is the official currency of the European Union, which has been issued in 15 member states and is often referred to as the eurozone.

3. Australian dollar AUDUSD: the world's fifth largest currency in circulation, after the US dollar, the euro, the Japanese yen, and the British pound, accounting for 6% of the total foreign exchange trading volume.

4. U.S. DOLLAR CADUSCAD: The Canadian dollar exchange rate is more affected by the movement of non-energy commodities, and the oil exchange rate will put pressure on the Canadian dollar because it will weaken the purchasing power of the Canadian dollar.

5. US Dollar Swiss Franc USDCHF: Due to Switzerland's economic and financial status, the Swiss franc is one of the four main currencies in the world. The Swiss franc is a highly stable currency.

6. US Dollar Japanese Yen USDJPY: The Japanese yen is the third most popular currency in the world. The Japanese yen has a strong correlation with Japan** and Japan's real estate situation.

7. US Dollar New Zealand Dollar USDNZD: Issued by the Reserve Bank of New Zealand, the Bank of New Zealand**, it is the legal tender of New Zealand, the Cook Islands, Niue, Tokelau and the Pitcairn Islands.

Forex trading currencies include EUR, USD, GBP, CHF, JPY, AUD, NZD, CAD.

Common currency pairs include EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, etc.

The most traded is stillUniversal currency USDUSDThe U.S. dollar, sometimes referred to as "greenback," is the monetary unit of the United States, the world's largest economy. Like any other currency, the value of the U.S. dollar is influenced by its fundamentals such as GDP, manufacturing and employment reports.

And secondly, it isThe opponent of the US dollar, the euro EURWhile the monetary institutions of the euro are a bit complicated, the euro itself is not complicated. The euro is less volatile than other currencies such as the British pound or the Australian dollar compared to the US dollar.

And there isGBP GBP, the pound is slightly more volatile than the euro. It can fluctuate from 100 to 150 basis points, but it is not uncommon for the euro to fluctuate by 20 pips. Its volatility can be seen in major cross currency transactions such as the UK-Japan and the UKCHF.

As a result, the British pound is likely to be the most volatile currency in the European and American sessions, and the least volatile in Asia.

The rest isJapanese Yen (JPY), Swiss Franc (CHF), Canadian Dollar (CAD), Australian Dollar and New Zealand Dollar (AUD NZD).etc., I won't introduce them one by one.