What are the types of foreign exchange financial products?
How to choose?
What are the types of foreign exchange financial products?
How to choose?
Foreign exchange financial products refer to the financial products purchased by individuals only in freely convertible foreign currencies, and the earnings are calculated in foreign currencies.
It is mainly divided into two categories, namely fixed income foreign exchange financial products and foreign exchange structured financial products.
What are the types of foreign exchange financial products: 1. Foreign currency deposit is a popular way for investors to choose at present, and its nature is the same as RMB deposit.
With stable returns and low risks, it is suitable for investors who do not know much about foreign currency financing but have some foreign currency at hand.
Different from RMB deposits, different foreign currency deposits have different interest rates, and the exchange rates of different currencies are also different, so the time of saving is not too short. It is recommended to choose a strong currency for foreign currency savings.
For a long time, the main way of foreign exchange investment of domestic residents is foreign exchange deposit.
Its characteristics are as follows: foreign exchange savings have low risk and stable returns, and investors do not need to spend time alone to pay attention to market conditions. It is suitable for investment groups with limited foreign exchange knowledge or poor risk tolerance.
With more and more foreign exchange financial products on the market, the traditional foreign exchange savings business has been greatly challenged.
Among foreign currency deposit, foreign currency notice deposit integrates liquidity and profitability, which is suitable for those investors who have a certain amount of idle foreign currency.
2. Foreign currency financial products are divided into capital preservation type and non-capital preservation type, and most of them are structured products.
Structured foreign currency financial products are products that combine fixed income products with financial derivatives such as exchange rate options and interest rate options. They can be linked to exchange rates of various currencies, stock indexes, interest rates and commodity prices.
3. QDII funds While the widespread losses of QDII funds in previous years chilled many investors, the strengthening of the dollar and quantitative easing in Europe in recent years have revived the products, particularly those that invest in the US market.
4. Foreign currency types Dollar, pound, franc, Japanese yen, Korean won, etc. are foreign currency financial products.
5. Forex Treasure Forex Treasure is a business in which banks provide foreign exchange financial instruments to individual customers.
At present, the domestic individual foreign exchange trading is a business in which the bank provides the immediate foreign exchange trading price according to the exchange rate of the international financial market, and individual customers buy and sell one kind of foreign exchange they hold into another kind of foreign exchange according to the bank’s quotation.
Forex Bao is a firm trade, its way of profit is to capture the bid-ask spread.
The advantage of the product is that there is no commission fee, and many banks have opened online banking and telephone banking for transactions.
6. Individual Currency options By paying a small premium to lock in future exchange rates, an investor in currency options can gain access to future profit opportunities.
This kind of investment requires investors to have certain foreign exchange professional knowledge, and requires investors to have a good judgment of the foreign exchange market.
For this reason, the currency options category has not received much attention.
7. Structured foreign exchange finance Structured foreign exchange deposits are a kind of structured foreign exchange products.
Structured FX is a product that trades a combination of fixed income and options.
The core feature of structured foreign exchange deposits is that, on the basis of ordinary foreign exchange deposits, banks embed options linked to exchange rates and interest rates in accordance with customers’ expectations of asset prices such as interest rates and exchange rates, and offer this package of structured products to investors. The investors’ income will include two parts: the interest income of deposits and the income from selling options.
In addition, personal foreign exchange financial products can be generally divided into the following two categories: 1.
Domestic bank financing on behalf of customers refers to the investment variety launched by domestic banks for individuals holding foreign exchange assets.
Banks design a series of products with different risks and returns according to the degree of risk that customers are willing to take and the price expectations of financial products such as exchange rate and interest rate, and invest the funds raised in the domestic market.
At present, such foreign exchange WMPS can only be purchased with their own foreign exchange funds, subject to the annual quota of $50,000 per resident.
2. Overseas financial management by banks on behalf of customers.
QDII, or overseas financing on behalf of bank clients, mainly invests in stocks, bonds and other securities in the overseas capital market. The investors can be either individuals or institutions. Investors can choose to purchase the securities in local or foreign currencies, and the amount of investment is limited by the total issuance scale.
There are many kinds of foreign exchange financing in China. Different banks will issue one or more kinds of foreign exchange financing products, which are usually called foreign exchange real trading financial products.
However, most foreign exchange financial investors will choose another product, which is foreign exchange margin financial product. Foreign exchange margin thieves are usually called foreign exchange speculation, which is the foreign exchange financial product with the largest number of transactions in the world.
How to choose foreign exchange financial products?
When choosing foreign exchange financial products, investors can evaluate whether they are suitable for them from four aspects: to evaluate their risk tolerance correctly and objectively, and see whether they are suitable for fixed income products or floating income products;
Learn to judge the future trend of exchange rate and reduce the loss caused by currency exchange as much as possible.
It is necessary to judge whether the structure design of the product is reasonable and how likely it is to make profits by looking at the linked object of the financial product.
Depending on the redemption conditions of the products, the investment period of some structured foreign exchange financial products is relatively long, and investors have no right to redeem in advance. Even if some products can be redeemed, they still need to pay certain commission fees.
The above is “What types of foreign exchange financial products?
How to choose?”
The relevant introduction.
When purchasing foreign exchange financial products, you should fully understand the assets linked to the products and the trading rules.
Generally speaking, the fluctuation range of the exchange rate market is much larger than that of the gold market, so investors choose the foreign exchange financial products with the gold index as the relevant subject matter to suffer less risk of loss.
