The difference and connection between foreign exchange options trading and selective foreign exchang

**Account opening selection** company, it is recommended to consider and pay attention to the following aspects: a) Strong strength and large scale: 1

First of all, the investment of large companies in software and hardware is incomparable to that of small companies, and the transaction speed of small companies is much worse than that of large companies. 2.In addition, the strong ** company, internal management, risk control are very strict, the possibility of the company systemic risk is very low.

b) Relatively low handling fee: 1The handling fee is not a big problem when you make money, but when you lose money, you can save a little bit.

c) Pay attention to small and medium-sized investors: 1After opening the account, someone will take care of it, and you can find someone to consult and solve the problem when you encounter it.

Recommend China Securities Construction Investment**, a large state-owned company, small and medium-sized investors have the same handling fee rate as large investors, and each investor has an account manager service to solve problems in a timely manner.

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Referred to as China Securities Construction Investment, established on March 16, 1993, is a wholly-owned subsidiary of China Securities Construction Investment. Specializing in commodity ** brokerage.

Stock index ** brokerage.

Investment advisory, asset management and sales business, and access to the interbank bond market. With a registered capital of 1.4 billion yuan, the company can provide high-quality and efficient financial services for investors across the country through its own 29 ** business outlets and more than 300 ** business outlets of China Securities Construction Investment throughout the country. One-to-one account manager meticulous service, basic knowledge full teaching.

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The so-called elective transaction refers to the foreign exchange trading business in which the customer can deliver at the agreed exchange rate on any working day within a certain period of time in the future, and it is a forward foreign exchange transaction that can choose the delivery date. Options trading is a standardized contract in the market.

Forward foreign exchange transaction: refers to a foreign exchange transaction in which the buyer and seller of foreign exchange sign a forward foreign exchange purchase and sale contract in advance, stipulating the currency, amount, exchange rate and future delivery time of the transaction, and the buyer and seller handle the receipt and payment of the foreign exchange at the agreed exchange rate on the agreed maturity date. Elective Forex Trading:

When making forward transactions, there is no specific delivery date, only the delivery period. Within the specified delivery period, the client is free to choose the date of delivery at a predetermined exchange rate and amount. :

Foreign exchange options trading refers to the buying and selling of foreign exchange with the expectation of profiting from future fluctuations in exchange rates. Foreign exchange speculation can be carried out through spot currency transactions, but most of them are carried out through futures transactions, because in this way speculators do not have to hold large sums of cash, and only need to pay a small amount of margin, they can make large speculative transactions. There is no need to pay cash when it is due, as long as the difference between profit and loss is calculated, and the profit and loss are paid, it can be liquidated.

For example, when the U.S. dollar exchange rate is possible, sell U.S. dollar futures in the foreign exchange market;

If the U.S. dollar exchange rate is really ** at maturity, you can buy U.S. dollar spot exchange at the ** exchange rate to deliver U.S. dollar futures, so as to obtain profits. This type of speculation of selling first and then buying is called "shorting" or "short selling".

1. The role of foreign exchange options trading.

1. For customers who need foreign exchange receipt and payment, they can both profit and avoid loss in exchange rate changes. For importers, exporters and other customers who need to receive and pay foreign exchange, when they are not sure about the future trend of the exchange rate, they can participate in foreign exchange options trading. In this way, it can not only prevent losses caused by adverse changes in the exchange rate, but also obtain the benefits of favorable changes in the exchange rate.

2. The loss of speculative mistakes can be controlled. For speculators, the purpose of their participation in foreign exchange options trading is to insure their foreign exchange speculation and control the losses caused by the failure of speculation. If they are not sure that a certain exchange rate will rise, they can buy foreign exchange options, i.e. make a "long" speculative trade.

If the exchange rate rises by the delivery date, they exercise the right to buy; If the exchange rate is **, they exercise the right not to buy, and only lose the right fee. Therefore, the price they pay for the inaccuracy is only a small amount of option fees. If they ** a certain exchange rate will fall, but they are not sure enough, they can buy and sell foreign exchange options, that is, make "short" speculative transactions, which can also avoid huge losses caused by inaccurate exchange rates**.

It is generally believed that foreign exchange options trading controls and reduces the risk of foreign exchange trading, but in practice, due to the role of option trading in controlling risks, speculators are becoming more and more emboldened to speculate

The scale is also getting bigger, making the financial risk much higher.

Second, the advantages of foreign exchange options trading.

For the buyer, the main role of foreign exchange options is to enhance the flexibility of the transaction by purchasing options, that is, they can have the right to choose the exchange rate that is favorable to them for foreign exchange trading, eliminate the losses caused by exchange rate changes, and seek the benefits brought by exchange rate changes.

(1) The meaning of forward foreign exchange transactions.

Forward transaction, also known as forward transaction, refers to a transaction method in which the buyer and the seller (at least one of whom is a bank) do not deliver immediately after the transaction, but deliver it on an agreed date in the future (at least after the third business day after the transaction). The foreign exchange that is bought and sold through forward foreign exchange transactions is called forward foreign exchange or foreign exchange, and the exchange rate used is called the forward exchange rate.

Forward forex trading is done through a contract (contract), which is an agreement between a buyer and a seller. Once the contract is signed, both parties must perform in accordance with the relevant terms of the contract and cannot arbitrarily breach the contract. The contract generally includes five aspects:

The type of currency, exchange rate, quantity, delivery period, and the type of foreign exchange bought and sold (buy or sell at maturity).

Common forward forex transactions have maturities of 1 month, 2 months, 3 months, 6 months, 9 months and 12 months, although some can be as short as a few days or as long as more than 1 year, although this is relatively rare in practice.

To sum up, we can summarize the characteristics of forward foreign exchange transactions: that is, three fixed: ** (forward exchange rate) fixed, fixed quantity, and fixed delivery period.

2) Types of forward foreign exchange transactions.

Forward foreign exchange transactions can be divided into two types: fixed delivery date forward transactions and elective transactions according to different delivery dates.

1. Forward trading on a fixed delivery date.

Fixed delivery date forward trading refers to forward foreign exchange trading activities with a fixed delivery date. The peculiarity of this type of transaction is that once the delivery date is determined, neither party can change it at will. What we usually refer to as forward forex trading refers to this fixed delivery date forward transaction.

2. Elective trading.

Elective foreign exchange trading refers to the fact that when making forward transactions, there is no specific delivery date, only the delivery period range. Within the specified delivery period, customers can freely choose the date of delivery according to the specified exchange rate and amount.

In order to prevent losses caused by changes in the exchange rate when receiving and paying, customers can do elective foreign exchange transactions through the bank, so that within the agreed period, customers can freely choose the date of delivery. When trading foreign exchange on a futures basis, customers should minimize the uncertainty period in the future in order to obtain a more favorable forward exchange rate.

For example, on April 3, 2003, a company proposed to BOC to purchase euros with US dollars, and the expected external payment dates were July 7 and August 5, but the exact delivery date could not be determined at present. The company and Bank of China to conduct elective foreign exchange trading, the delivery date is any bank working day from July 7 to August 5, and the forward exchange rate is.

Regardless of the exchange rate change, the company can choose one bank business day from July 7 to August 5 at the exchange rate from BOC** EUR.

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.

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One is not extended, and the other is extended

1. Traders are not the same.

As long as the BAI margin is paid in accordance with the regulations, any investor can pass the foreign exchange system

The broker is engaged in trading DAOs. Foreign exchange speculation can be carried out through spot currency trading, but most of the time it is carried out through futures trading.

2. The transaction margin is different: both parties to the foreign exchange transaction need to pay the margin, and through the ** exchange daily clearing, daily calculation of profit and loss, and make up or return the excess margin. The negotiated exchange rate for foreign exchange options trading is in the US dollar.

3. Overall trading: In foreign exchange trading, foreign exchange is usually bought and sold at the expense of the national currency, while foreign exchange options trading is not.

The underlying asset of a forex transaction is the exchange rate.

A spot transaction is a current transaction.

Forwards, contracts entered into over-the-counter between the two parties to a transaction are not standardized and have a risk of default.

**, the clearing house acts as an intermediary, trading standardized contracts, and the risk of default is small, because the counterparty is the clearing house.

Options are divided into ** options and put options, the former means that the option holder has the right to specify a certain amount of the underlying asset to the counterparty on a specified date, and the latter only has the right to sell a certain amount of the underlying asset to the counterparty. The short position of the option, that is, the seller, obtains the option premium and bears the obligation to deliver at that time, but the long position of the option, and the holder, pay the option premium and have the right to demand delivery from the other party, but there is no obligation to deliver, that is, the exercise can be waived. Exchange-traded with less risk of default.

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Forward foreign exchange.

Buying and selling business refers to the convergence of buyers and sellers according to external sources

A foreign exchange transaction that is delivered at an agreed exchange rate within a specified period. The customer is invited to issue a forward foreign exchange trading instruction to Bank of China, determine the transaction details through a 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.

Personally, I still think it's better to do foreign exchange, and those are not easy to get involved in.