It’s the exchange of one country’s currency for another.
Unlike other financial markets, there is no specific location and no central exchange. Instead, transactions are conducted through electronic networks among banks, companies and individuals.”
A “trade” is a simultaneous purchase of one currency in a pair and a sale of the other.
Foreign exchange is traded in currency pairs, such as /(EUR/USD) or US dollar /(USD/JPY).
Transaction method: 1. Also known as transaction, it is a foreign exchange transaction method agreed by both parties to handle delivery within two business days after the transaction;
2. Forward transaction: a foreign exchange transaction, also known as future exchange transaction, which is not delivered after the transaction and is handled at the agreed time according to the contract;
3. Arbitrage refers to a foreign exchange trading method that makes use of different foreign exchange markets, different currencies, different delivery times and some differences in sum to buy from the low-priced side and sell from the high-priced side to earn profits.
4. Arbitrage trading: a trading method that makes use of the interest rate difference between two countries to transfer funds from one market to another to earn profits;
5. Swap transaction: refers to the combination of two or more foreign exchange transactions in the same currency, but in opposite directions and on different delivery dates;
6, the so-called foreign exchange futures, refers to the subject of the futures contract, used to avoid exchange rate risk.
It is the earliest variety of financial futures;
7, transaction, currency options trading foreign exchange, the option buyer to the seller pay the premium option to get a right, namely the option buyer after pay a certain amount of premium, shall have the right on the due date in accordance with the provisions of the two sides agreed in advance agreed in the agreement right of exchange rate and amount in the same period the seller to buy or sell currencies, and the rights of the buyer shall have the right to not perform the contract;
8. In the future, there will be a joint venture between banks and Internet investment companies, which will reduce unnecessary costs for individual investment.
The growth rate was the worst in seven months, and the labor market could be damaged if the Fed continues to raise rates aggressively.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
