Briefly describe the difference between the option transaction and the forward foreign exchange tran

Option (option; option contract), also known as option, is a derivative financial instrument produced on the basis of **. In essence, options are essentially pricing rights and obligations separately in the financial field, so that the transferee of the right can exercise its rights within a specified time as to whether or not to conduct a transaction, and the obligated party must perform it. In the trading of options, the party who buys the option is called the buyer, and the party who buys the option is called the seller; The buyer is the assignee of the rights, and the seller is the obligor who must perform the buyer's rights.

Foreign exchange trading in the international ** is to avoid risks! Because foreign trade companies use the currencies of other countries in foreign trade activities, they need to reserve a certain amount of foreign currency, and because the exchange rate of international currency is floating, it is necessary to find ways to avoid the risk of currency depreciation caused by exchange rate changes! For example:

A Japanese foreign trade company and a U.S. foreign trade company signed an order to export a batch of goods to the U.S. foreign trade company on March 10, 2011, and the U.S. foreign trade company was required to pay 50 million yen to the Japanese foreign trade company. At this time, because the deadline has not arrived, but the exchange rate of the US dollar against the yen is changing all the time, once the US dollar depreciates against the yen, the US foreign trade company will suffer losses! At this time, the U.S. foreign trade company can do a forward foreign exchange operation, convert the U.S. dollar into Japanese yen, (i.e., short the U.S. dollar) and the contract time is March 10, 2011.

In this way, no matter how the exchange rate changes, the ** companies in the United States will not have any losses.

In fact, it is the difference between ** and options hedging. Options are better. Tied up less capital.

Similarities:

1. Foreign exchange ** trading and foreign exchange forwards are both components of the foreign exchange market. 62616964757a686964616fe58685e5aeb931333436316236

2. Foreign exchange ** transactions and foreign exchange forward transactions are the same objects, both are foreign exchange.

3. The principle of foreign exchange ** trading is the same as that of foreign exchange forward trading.

4. The role of foreign exchange ** transaction and foreign exchange forward transaction is the same, and the main body of these two transactions is to prevent and transfer exchange rate risks, and achieve the purpose of value preservation and speculative profits.

5. Foreign exchange ** transactions and foreign exchange forward transactions are agreed to deliver a certain amount of foreign exchange within a certain future time and under certain conditions.

6. Foreign exchange transactions and foreign exchange forward transactions originate from the international market, and provide conditions for preventing exchange rate risks

Differences: 1. The market is different. The Forex** market is a highly regulated trading venue, while the forward forex market does not have a fixed trading venue.

2. Different trading methods. Forex** transactions are executed by bid, while the forward foreign exchange market is carried out through telecommunication instruments and the bid and ask prices are quoted at the same time.

3. The degree of contract specification is different. In foreign exchange** trading, the contract is very standard, which is reflected in the standardization of the amount, delivery period, and delivery location.

There are many other differences between the two, and in daily operation, you must distinguish them and choose the way that suits you.

(1) Traders are different. Foreign exchange trading, as long as the margin is paid according to the regulations, investors can engage in trading through foreign exchange brokers, and the restrictions on the client are not as good as forward foreign exchange transactions, because in forward foreign exchange transactions, most of the participants are professional traders or large manufacturers with good business relations with banks, and it is extremely difficult for individual investors and small and medium-sized enterprises to have the opportunity to participate in forward foreign exchange transactions without obtaining credit lines from banks.

2) Trading margin. Both parties to the foreign exchange transaction must pay a margin, and through the ** exchange daily liquidation, daily calculation of profit and loss, and make up or return the excess margin. Whether or not to pay margin for forward foreign exchange transactions depends on the relationship between the bank and the customer, and usually does not need to pay margin, and the profit and loss of forward foreign exchange transactions will not be settled until the expiration date of the contract.

3) The way of trading is different. Forex trading is carried out by way of open outcry on the exchange. The two parties to the transaction do not contact each other, but each of them settles as an intermediary with the clearing house, and bears the credit risk.

**Contracts are subject to restrictions on trading currency, delivery period, trading unit and price change. Currencies are limited to a few major currencies. Forward foreign exchange transactions are over-the-counter transactions, and the transaction is carried out by the buyer and the seller as counterparties by ** or fax, and there is no currency limit, and the transaction amount and maturity date are determined by the buyer and the seller.

This increases the risk of default of the other party in the economic downturn, and there are no special restrictions on the time, place, price and disclosure of the transaction.

4) Overall trading. In foreign exchange** trading, foreign exchange is usually bought and sold at the expense of the national currency, such as only the US dollar in the US market**, therefore, the hedging between currencies other than the US dollar, such as the mark and the yen, can only be bought and sold in the US dollar as a proxy for the Japanese yen or the mark, thus constituting a two-transaction transaction. In forward forex trading, different currencies can be traded directly with each other.

Forward foreign exchange trading business refers to the buyer and seller press.

DU exchange rate agreed in the BAI foreign exchange contract, and the delivery of the ZHI foreign exchange transaction within the agreed period. The applicant DAO customer will issue a forward foreign exchange trading instruction to Bank of China, determine the transaction details through written entrustment, and after the transaction, Bank of China will issue a transaction confirmation and realize the receipt and payment on the delivery date (a period after the second working day after the transaction date). The bank may be required to close the transaction during the trading period or to roll over the transaction once before the maturity date of the transaction.

Corporate options business refers to the capital business of institutional customers and BOC to make ** or sell option contracts: after paying the seller's option premium, the buyer obtains the right to buy and sell a certain amount of a certain amount of subject matter (foreign exchange or ***) or obtain a certain income at a specified point in time or within a certain time limit according to the agreed conditions; Correspondingly, the seller has an obligation to perform the contract at the request of the buyer.

For more information, please contact your local BOC outlets.

The above content is for your reference, and the actual business regulations shall prevail.

** and options are two products, so there are many differences, the similarity is that both are foreign exchange. How are you doing?

Forex** is a standardized loss-type forward that is traded on the floor, that is to say, the amount of the underlying and the amount of the subject matter are set by the exchange, and the others are the same as the 'forward'.

The underlying of an option' contract is a right. For the buyer, the option contract gives him only the right and no obligation to cancel the contract; For the seller, there is only the obligation to perform the contract, but not the right.

Forward foreign exchange contracts, both '**' and 'forward' are contracts that agree to buy or sell a certain amount of a certain underlying asset at a certain time in the future according to the agreed conditions at the time of the transaction. The difference lies in the degree of standardization, trading venue, default risk, ** determination method, performance method, settlement method and the relationship between the two parties to the contract.

Both are agreed to conduct foreign exchange transactions at a certain time (or time period) in the future according to the current determined **.

Difference: Forward transaction is a contract between the two parties, both parties are obliged to ensure the execution of the contract, and the two parties must carry out the transaction at the time agreed in the contract. Options trading is a unilateral right, that is, the buyer of the option can decide whether to exercise the option at the time of expiration.

If the buyer of the option decides to exercise it, the actual transaction will take place, and if the buyer of the option does not exercise the option, then the transaction will be cancelled.

Forward foreign exchange trading is the act of trading US dollars with RMB with others one day in the future.

Foreign exchange**, you have to figure out that ** is not to buy and sell US dollars directly with others, but to buy and sell a standardized contract, which can be understood as buying and selling standardized forward foreign exchange trading contracts, note that the subject matter here is a contract, and the subject matter above is the US dollar and RMB, which is the difference between the two.

Foreign exchange options, note that options are a right, foreign exchange options are a kind of buying and selling foreign exchange **, that is, you give others a sum of money, others agree to no matter how it changes, according to the agreement in a certain period of time (American options) or a certain time in the future (European options) to buy and sell an agreed number of foreign exchange options in a certain period of time (American options) or at a certain time in the future (European options), of course, this decision is up to you, that is, the buyer of the foreign exchange options contract.

The differences are as follows:

1) Forwards can completely avoid risks, while ** and options generally cannot completely avoid risks.

2) When the basis between the spot and the spot at the time of the **** is equal to the basis between the spot and the basis at the expiration of the ****, the risk can be completely avoided.

3) Options rarely completely avoid risks, and the cost is high, but they can enjoy the benefits of favorable exchange rate changes.

4) Through the above comparison, the above three risk aversion methods should be selected as follows: when you are willing to bear higher costs and want to enjoy the benefits brought by exchange rate changes, that is, if you are not a risk aversion, you should choose options; If you're a complete risk aversion, choose forwards; ** is a compromise choice.

Forward exchange transaction, also known as futures exchange transaction, refers to a foreign exchange transaction in which the two parties do not handle the delivery immediately after the transaction, but agree on the currency, amount, exchange rate, delivery time and other transaction conditions in advance, and only carry out the actual delivery at the expiration date.

Features: (1) After the two parties sign the contract, there is no need to pay foreign exchange or national currency immediately, but to postpone it to a certain time in the future;

2) The scale of the transaction is large;

3) The purpose of buying and selling is mainly to preserve value and avoid the risk of fluctuations in foreign exchange rates;

4) The contract signed between the foreign exchange bank and the customer must be guaranteed by the foreign exchange broker. In addition, the client should deposit a certain amount of deposit or collateral. When the exchange rate does not change much, the bank may offset the loss with the deposit or collateral.

When the exchange rate changes and the customer's loss exceeds the deposit or collateral, the bank shall notify the customer to deposit the deposit or collateral, otherwise, the contract shall be invalid. The deposit deposited by the customer is regarded by the bank as a deposit and the interest is calculated.

b.A wide range of businesses, banks. Participation is open to both companies and the general public.

The foreign exchange forward market is an intangible market, not an exchange-traded market.

Envy of the answerer]: a, b, c, d

According to the trading purpose of the option holder, the first right of the foreign exchange period can be divided into ** option (call option) and sell option (put option). Therefore, the answer to this question is ABCD.

Answers]: a, b, c, d

FX options trading strategies can be divided into two categories: one is a single option (the allocation of options and spot exchange); The second is the first rough option combination (the allocation of imitation sail options and options). Among them, the single option strategy is divided into:

Sell call options and spot long allocations; **Allocation of put options and spot currency longs; **Allocation of call options and short positions in cash reserves; Sell put options and short spot swap allocations.

When the RMB exchange rate fluctuates relatively largely, especially if the foreign exchange is collected, the people may appreciate relatively, such as a company exports DAO foreign exchange of 10 million US dollars for 180 days forward l c.

If the trend of RMB appreciation is obvious, assuming that the exchange rate is today, and it may be 180 days later, it is equivalent to 1 million yuan less than the foreign exchange received 180 days later.