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In foreign exchange forward trading, there are generally several trading methods, which are:
Direct foreign exchange forward trading: refers to trading directly in the forward foreign exchange market, without corresponding transactions in other markets. Banks usually do not use the full value of the forward exchange rate, but the difference between the forward exchange rate and the spot exchange rate, that is, the basis point.
The forward rate may be higher or lower than the spot rate.
Options in the nature of foreign exchange forwards: A company or business usually does not know in advance the exact date of its foreign exchange earnings. Therefore, it is possible to conduct options foreign exchange transactions with banks, that is, to give enterprises the right to execute forward contracts within a certain period of time after the trading date, such as 5-6 months.
A combination of spot and forward foreign exchange forward transactions.
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The first is direct forward foreign exchange trading, which refers to direct trading in the forward foreign exchange market; The second is the forward foreign exchange transaction of the nature of options, the company generally does not know the exact date of its foreign exchange income in advance, so it can conduct option foreign exchange transactions with the bank; The third is a combination of spot and forward forward foreign exchange transactions.
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Foreign exchange transactions can be mainly divided into cash, spot, contract spot, **, options, forward transactions, etc. Specifically. Cash transactions are the buying and selling of foreign currency between tourists and those who need foreign currency for various other purposes, including cash, foreign currency traveler's cheques, etc.; Spot transactions are transactions between large banks and large customers of large banks, and the receipt and payment of funds shall be completed within two business days at the latest after the transaction is agreed; Contract spot trading is a method for investors to sign a contract with a financial company to buy and sell foreign exchange, which is suitable for public investment; ** Transactions are made at an agreed time and at a determined exchange rate, with a fixed amount for each contract; Options trading is a pre-emptive transaction on whether to buy or ** an option on a certain currency in the future; Forward transactions are delivered on the agreed date according to the provisions of the contract, and the contract can be large or small, and the delivery period is more flexible.
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It is often applied to the following aspects: importers and exporters avoid exchange rate risk by locking in foreign exchange forward rates, short-term investors or foreign exchange debt bearers avoid exchange rate risks through forward transactions and foreign exchange forwards without principal delivery, which is an over-the-counter foreign exchange derivative instrument, mainly with banks acting as intermediaries, and the different views of the two parties on exchange rate expectations.
Extended information: Foreign currency, is a monetary authority (**bank).
Monetary Authority, Foreign Exchange Equalization** and the Ministry of Finance.
Claims that can be used in the event of a deficit in the balance of payments in the form of bank deposits, treasury bills of the Ministry of Finance, long-term and short-term bonds.
Including foreign currency, foreign currency deposits, foreign currency valuable**(**Public bonds, treasury bills, corporate bonds.
**etc.), foreign currency payment vouchers (bills, bank deposit certificates, postal savings certificates, etc.). China is the world's largest foreign exchange reserve.
Ranked number one. However, the United States, Japan, Germany and other countries have a large number of private foreign exchange reserves, and the country's overall foreign exchange reserves are much higher than China's.
Foreign exchange refers to all assets owned in foreign currencies. It refers to the flow of currency between countries and the exchange of one country's currency into another country's currency to pay off international claims and debts.
In fact, it is the creditor's rights that can be used in the event of a deficit in the balance of payments held by the monetary administration (**bank, monetary management agency, foreign exchange leveling** and the Ministry of Finance) in the form of bank deposits, treasury bills of the Ministry of Finance, long-term and short-term bonds. 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. For example, US dollars, Hong Kong dollars, Canadian dollars.
Wait. 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. International Monetary Organization**.
Stipulates that all currencies that have certain restrictions on payments and transfers of funds for international current transactions are limited freely convertible currencies. More than half of the world's national currencies are limited freely convertible currencies, including the renminbi.
Financial foreign exchange is different from foreign exchange and non-foreign exchange, and it is a kind of financial asset.
Foreign exchange, such as foreign exchange traded between banks, is neither tangible nor intangible.
It is not used for tangible **, but for the management and manipulation of various currency heads.
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At present, the scattered foreign exchange transactions between Chinese enterprises and China's commercial banks can be mainly divided into cash, spot foreign exchange transactions, and contract return spot foreign exchange transactions.
Forex** trading, foreign exchange options trading, forward foreign exchange trading, swap trading.
Wait. Forward foreign exchange transactions and forward foreign exchange settlement and sales.
The main differences are as follows:
1. The meaning is different:
Forward foreign exchange trading is a kind of trading behavior of forward foreign exchange trading in the foreign exchange market, and the symmetry of spot trading. Forward foreign exchange trading is one of the important forms of trading in the foreign exchange market.
Forward settlement and sale of foreign exchange refers to the determination of the exchange rate.
The actual foreign exchange receipts and payments occur in the foreign exchange settlement and sales business after the first and later (the two occur at the same time in the spot foreign exchange settlement and sale). The customer negotiates with the bank to sign a forward foreign exchange settlement and sales contract, stipulating the currency, amount, exchange rate and delivery period of RMB against foreign exchange for foreign exchange settlement or sale in the future.
2. Different properties:
Forward foreign exchange trading is a kind of trading behavior of forward foreign exchange trading in the foreign exchange market; Forward foreign exchange settlement and sales refer to the settlement and sale of foreign exchange in which the exchange rate is determined to be in the first place and the actual foreign exchange receipts and payments are in the back.
3. The time is different
The delivery period of forward foreign exchange transactions is generally 1 month, 3 months, 6 months, and some can be up to 1 year. The purpose of such transactions is to avoid or minimize possible losses due to exchange rate fluctuations.
Forward foreign exchange settlement and sale is on the day of delivery, and customers can settle or sell foreign exchange with the bank according to the currency, amount and exchange rate determined in the forward foreign exchange settlement and sales contract.
4. Different characteristics:
Forward foreign exchange buy transaction is a forward transaction that specifies the delivery time in advance. The aim is to avoid the risks associated with changes in the exchange rate over a period of time. The delivery period of the fixed method is measured in weeks and months, such as 1 week, 2 months (60 days and months (180 days), etc., which is the most commonly used form of forward foreign exchange trading in practice.
Forward foreign exchange settlement and sales can be agreed in advance on the exchange rate of foreign exchange settlement or foreign exchange sales to the bank on a certain date in the future, so for customers who have foreign exchange collection and payment business in the future, it can play a role in preventing exchange rate risks and maintaining currency value.
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1. Importers and exporters buy or sell foreign exchange futures in advance to avoid the risk of exchange rate changes.
Exchange rate changes are recurring, in the commodity ** exchange, the longer the time, the greater the risk brought by the exchange rate change, and the importer and exporter from the signing of the sales contract to delivery, payment often takes a considerable time (usually up to 30 days 90 days, some longer), therefore, may suffer losses due to exchange rate changes. In order to avoid the risk of exchange rate fluctuations, importers and exporters try their best to handle the delivery at the exchange rate at the time of transaction when receiving or paying the money.
2. Foreign exchange banks trade in order to balance their forward foreign exchange holdings.
Forward foreign exchange holdings are foreign exchange positions. In order to avoid foreign exchange risks, importers and exporters conduct foreign exchange futures transactions, which in essence transfers the risk of exchange rate group changes to foreign exchange banks. In the event of an imbalance in the futures position, the foreign exchange bank should first sell the same amount of spot exchange of the same kind and then make up for the futures.
That is to say, the same amount of spot exchange is used to cover the foreign exchange risk before the balance of the futures position. Second, when balancing the foreign exchange position, the bank must also pay attention to the changes in the spot exchange rate and the size of the difference between the spot exchange rate and the forward exchange rate.
3. Short-term investors or fixed-term debt investors make an appointment to buy and sell futures foreign exchange to avoid risks.
In the absence of exchange controls, if a country's interest rate is lower than that of another country, that country's funds will flow to other countries in search of higher interest rates. This is in the case of foreign investment, and if a person has a fixed foreign exchange debt abroad, he or she will have to buy a foreign exchange to prevent the debt from paying more in the country's currency when the debt matures.
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Forward foreign exchange transactions, also known as "futures transactions", refer to foreign exchange transactions in which the two parties to the transaction do not handle the delivery immediately after the transaction, but agree in advance to sell the fixed currency, amount, exchange rate, Shifan delivery time and other trading conditions, and then carry out the actual delivery of foreign exchange transactions at the expiration date. Any foreign exchange transaction with a delivery date two business days after the transaction date is considered a forward foreign exchange transaction. Forward repatriation foreign exchange trading is an indispensable part of the effective foreign exchange market, and its main role is hedging and hedging.
The most common forward foreign exchange transaction delivery terms are generally 1 month, 2 months, 3 months, 6 months, and 12 months. If the term is longer, it is called an "ultra-forward transaction".
The trading methods of foreign exchange trading can be divided into: direct forward foreign exchange trading, forward foreign exchange trading of option nature, and forward foreign exchange trading of spot and forward combination.
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1. Forward foreign exchange transactions, also known as futures foreign exchange transactions, refer to foreign exchange transactions in which the two parties to the transaction do not handle the delivery immediately after the balance is delayed, but agree in advance on the currency, amount, exchange rate, delivery time and other transaction conditions, and only carry out the actual delivery after expiration.
2. Forward foreign exchange transactions are an indispensable part of the foreign exchange market, and the most common forward foreign exchange transactions have delivery periods of 1 month, 2 months, 3 months, 6 months and 12 months. The main ways of forward foreign exchange transactions are: direct forward foreign exchange transactions; There are three types of forward foreign exchange transactions in the nature of options and forward foreign exchange transactions that combine spot and forwards.
3. Among them, direct forward foreign exchange trading: refers to directly trading in the forward foreign exchange market, without corresponding transactions in other markets; Forward foreign exchange transactions in the nature of options: companies or enterprises usually do not know the exact date of their foreign exchange earnings in advance, therefore, they can conduct option foreign exchange transactions with banks, that is, give enterprises the right to execute forward contracts within a certain period of time after the transaction date, such as 5-6 months.
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Forward exchange transaction is one of the important forms of trading in the foreign exchange market, which refers to the exchange of a pair of currencies between buyers and sellers at a specific time in the future. These transactions typically occur after the settlement date of the spot contract and are used to protect the buyer from currency fluctuations.
Forward forex trading is an over-the-counter transaction that is usually operated by a foreign exchange bank or forex broker that operates spot forex trading. In a forward transaction, the buyer and the seller generally enter into a sales contract first, stipulating the quantity, term and exchange rate of foreign exchange trading, etc., and then deliver the transaction at the exchange rate specified in the contract on the agreed date. The delivery period of forward transactions is generally 1 month, 3 months, 6 months, and some can be up to 1 year.
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Forward exchange transaction, also known as futures exchange, refers to a foreign exchange transaction in which the two parties to the transaction do not handle the delivery immediately after the transaction, but agree in advance about the transaction conditions such as the fixed currency, amount, exchange rate, and delivery time, and then carry out the actual delivery at the expiration date.
1. You can go to the bank counter to handle the transaction. The specific process is as follows: 1. The customer receives the personal foreign exchange trading application form or power of attorney at the counter, fills in the form according to the requirements (generally fills in the type, amount, and approved exchange rate of foreign currency and signs), and submits it to the counter clerk for review and inventory together with his ID card, passbook or cash. >>>More
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Emphasizing, there is no legal formal foreign exchange platform in China, this area is not open, in China to do margin foreign exchange trading itself is illegal, don't be fooled, the so-called supervision of foreign countries is useless, don't believe it. Even state-owned banks can't do margin form, they do it in full; Financial security has now been raised to an unprecedented height, the country began to increase the intensity of the crackdown last year, no longer as in the past to turn a blind eye, the security of funds on the platform is more and more unguaranteed, now many platforms are not smooth in deposits, are engaged in deposit discounts, may be in preparation for the future to run away with money; The Supreme People's Court also issued a legal interpretation in February this year, trading more than 50,000 is a felony, and foreign exchange trading leverage is high, in fact, it is also the most difficult to do and make money, non-professionals better not to participate, do not take their own hard-earned money to try, not so easy to make money, do not listen to other people's fools; In any industry, the more you know, the more professional you are, the more likely it is to earn, and it is only possible to say that it is possible. Doing foreign exchange gambling is mentally stressful, and the body is also prone to various problems.
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