Transaction is one of the ways, after the transaction, the buyer and seller do not provide spot, but only provide a certain amount of margin, and enter into a contract, agreed in a future month according to the agreement for the actual collection and payment.
This is one of the main measures to avoid exchange rate risk.
The delivery period is generally 1 month, 3 months, 6 months.
In foreign trade, exporters in order to expand export, enhance the international competitiveness of export commodities;
Importers often sign forward payment contracts for the convenience of financing.
It is difficult to anticipate fluctuations and greater losses to both parties for a period of time before payment is realized.
In order to avoid the exchange rate risk, the importer needs to buy the futures paid at maturity in advance;
Exporters also need to sell maturing foreign exchange futures in advance to avoid exchange rate risk;
Foreign exchange banks also need to balance their positions by buying or selling forward foreign exchange futures in order to ensure their business and capital security.
Foreign EXCHANGE futures trading IS A contract TO buy or sell a specified amount of foreign exchange at a specified date, place and price through open bidding in a futures exchange.
The trading of,,, and foreign exchange futures trading.
Spot foreign exchange transaction refers to the transaction that is delivered on the second business day after the transaction is completed.
Forward exchange transaction, also known as long term exchange transaction, is through commercial banks and investment banks for the buyers and sellers to purchase and sell foreign exchange business.
Compared with spot foreign exchange transaction, forward foreign exchange transaction has the advantages of maintaining value, avoiding exchange rate risk, capital planning and flexible turnover.
Foreign exchange option trading is also a forward foreign exchange trading, which is different from the general forward foreign exchange trading, mainly including the purchase and sale of options in foreign exchange trading.
Forex futures and forward FOREx transactions involve the payment and delivery of a specified standard amount of foreign currency at a predetermined price on a specified date in the future.
But futures trading is different from forward trading.
The dollar rose to a three-week high and the yen hit a more than six-and-a-half-year low.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
