Foreign exchange margin actually refers to the general term for foreign exchange transactions by occupying margin, and foreign exchange margin is one of financial derivatives. It is a financial derivative that uses a certain proportion of funds in the foreign exchange market to buy and sell various currencies, and conducts value-added transactions that expand hundreds of times or even hundreds of times in the direction of exchange rate fluctuations. It is also called leveraged foreign exchange. Foreign exchange margin has very obvious futures knowledge, also known as currency futures. In layman’s terms, it is a futures contract based on foreign exchange, which is mainly used to avoid foreign exchange risk, that is, exchange rate risk.
This involves the knowledge of options, the issue of buying options and selling options. The buyer buys a right. According to this right, he can buy a foreign exchange with a predetermined agreement on a certain day in the future and sell another foreign exchange at the same time. kind of foreign exchange. Selling options is to sell a right to the other party, and the other party has the right to buy a certain foreign exchange from the seller on the expiration date of the option according to the agreed price. The seller receives an option fee paid by the buyer for selling the option.
