What are the spot and cash rates of foreign exchange?

The spot exchange rate is the exchange rate given by the bank when you exchange your foreign exchange deposit for RMB, and the cash rate is the exchange rate given by the bank when you exchange foreign currency cash for RMB. Generally speaking, cash is cheaper because banks may be exposed to the risk of counterfeit money, and the cost of managing banknotes.

The younger brother is not talented. I don't know.

Wait to know what is telling you.

1. The nature is different.

Spot exchange refers to the foreign exchange of various payment vouchers expressed in foreign currency, which can be circulated and transferred in the international market and can be freely exchanged for the currencies of other countries. Such as the US dollar, British pound, Swiss franc, Deutsche mark and other major Western currencies. It refers to the foreign currency bills remitted from or brought in from abroad, which are transferred to an individual's bank account in the form of transfer.

Foreign exchange banknotes are concrete, actual foreign banknotes and coins. When customers want to transfer cash out of the country, they can carry it or remit it. However, when the customer takes the "remittance", because the cash is in the form of a physical object, the bank must ship it abroad, and the transportation cost will be borne by the customer, which is manifested as "banknote selling and foreign exchange buying"."(Customers sell cash, ** cash exchange).

2. Different from the perspective of storage.

After the bank receives foreign currency cash, it must accumulate a certain amount of money for a period of time before it can be transported and deposited in a foreign bank for allocation and use, during which the bank has to bear a certain amount of interest losses and expenses such as freight and insurance premiums during transportation.

The bank wants to pass on these losses and expenses to the customer who sells the cash, so the bank's cash is lower than the cash exchange, that is, when the customer sells the cash in his hand, it is a little lower than the cash exchange.

3. The value is different.

Taking the US dollar as an example, when sending money abroad, the amount of cash is limited to the equivalent of 2,000 US dollars, and the cash remittance is equivalent to 50,000 US dollars.

Cash refers to foreign banknotes held by an individual. Spot exchange refers to foreign currency bills and certificates.

Encyclopedia - Cash.

Encyclopedia - Spot.

The cash price refers to the foreign currency cash in the hands of the bank's customer, while the spot exchange rate refers to the foreign currency cash exchange in the hands of the bank's customer.

2. If the investor sells the spot exchange to the bank, that is, the foreign exchange deposit in the foreign bank is sold to the bank, and the foreign exchange deposit will be transferred from the investor's name to the bank's name from the moment it is sold to the bank.

If the bank's cash is cash, because the foreign currency cash cannot be used in the local circulation of the transaction, the cash needs to be shipped abroad, so it not only can not immediately obtain deposits and interest, but also has to pay for the custody of the cash, therefore, compared with the cash exchange, the bank has to bear higher costs after cash.

Extended information: Forex trading is the exchange of one country's currency with another's currency. Unlike other financial markets, the foreign exchange market does not have a specific location and does not have a ** exchange, but is traded through an electronic network between banks, businesses and individuals.

Forex trading"It is the simultaneous sale of one currency in a currency pair.

Forex is traded in currency pairs, such as the Euro US Dollar (EUR USD) or the US Dollar Japanese Yen (USD JPY).

Transaction methods: 1. Spot foreign exchange transaction: also known as spot foreign exchange transaction, is a foreign exchange transaction method in which the two parties agree to handle the delivery within two business days after the transaction.

2. Forward transaction: also known as futures transaction, the foreign exchange transaction method is not delivered after the foreign exchange transaction is completed, and the delivery is handled at the agreed time according to the contract.

3. Arbitrage: Arbitrage refers to the use of different foreign exchange markets, different currencies, different delivery times and differences in some currency exchange rates and interest rates to buy from the low price and sell from the first party to earn profits from foreign exchange transactions.

4. Arbitrage trading: a trading method that takes advantage of the interest rate difference between the two currencies to transfer funds from one market to another in order to earn profits.

5. Swap transaction: refers to the transaction of combining two or more foreign exchange transactions with the same currency, but the transaction direction is opposite and the delivery date is different.

6. Foreign exchange**: The so-called foreign exchange ** refers to the ** contract with the exchange rate as the subject matter, which is used to avoid exchange rate risk. It is the earliest variety that appeared in finance.

7. Foreign exchange option trading: foreign exchange options are traded in foreign exchange, that is, the option buyer obtains a right after paying the corresponding option premium to the option seller, that is, the option buyer has the right to buy and sell the agreed currency on the agreed expiration date according to the agreed exchange rate and amount agreed upon by both parties in advance, and the buyer of the right also has the right not to execute the above-mentioned sales contract.

8. In the future, there will be a foreign exchange trading platform jointly organized by banks and Internet investment companies, which will reduce unnecessary costs for individual investment.

Cash, remittance to charge banknote exchange conversion fee, foreign exchange settlement (customers use foreign exchange for RMB)** low.

Spot foreign exchange can be remitted directly, and foreign exchange settlement (customers exchange foreign exchange for RMB)** is higher.

Cash can be taken in cash, but when it is taken out, it becomes cash.

Cash cash exchange purchase (customers exchange RMB for foreign exchange)** is the same.

The differences between foreign currency cash and banknotes are as follows:

1. The form of expression is different.

Cash refers to a specific physical form of banknotes, or deposits made by depositing banknotes in a bank. The physical form here refers to paper banknotes or coins.

Spot exchange refers to bank deposits obtained and formed by international settlement methods such as checks, remittances, and collections.

However, not all bank deposits are in cash. Because, as mentioned earlier, after the cash is deposited in the bank, the bank opens a cash account for the depositor accordingly, and the resulting bank deposit is still cash.

2. The value of the two is different.

The value of the same amount of cash is lower than the value of the cash exchange. The reason why cash is not as valuable as cash exchange is that the cost of keeping cash for the bank is higher than that of cash exchange.

The bank collects the customer's cash, which needs to be counted and kept, and this labor requires the bank to pay labor costs and occupy the storage space. Moreover, the bank's cash is a non-interest-bearing asset, which will not increase in value when kept in the vault; If you deposit bank notes into your own account bank, the account bank will also receive a deposit fee search.

Foreign currency cash will only realize its payment value if it is shipped back to the country where it was issued. As a result, the ** of cash is usually lower than that of the current exchange rate.

Management and Substance of Spot Exchange:

The country's foreign exchange management policy is to encourage the holding of cash and limit the holding of cash, because cash is more convenient as money on the books than cash.

Foreign exchange management is a foreign currency bill that is imported or brought in from abroad through the national reform. Through transfers, cash remitted to an individual in a bank account is foreign exchange on the books. When it is transferred out of the country, there is no physical transfer, and it can be directly remitted.

Only when the cash transfer is withdrawn on the books, the same amount of cash can be withdrawn because the sender has already borne the cost of transportation. <>