In Forex, foreign exchange, generally there are such transactions: spot foreign exchange transactions, Forward transactions, Foreign currency futures trading, Foreign exchange trading. Below we will exchange transactions on the concept of several ways of understanding, in the next section, we will also be the transaction detail introduction.
Spot foreign exchange transactions: also called cash transaction or current transaction, refers to the foreign exchange trading after clinching a deal, both trade in the day or two trading settlement procedures within a transaction. Spot foreign exchange trading foreign exchange market is one of the most common possibilitys, spot foreign exchange transactions accounted for most of the foreign exchange trading. Mainly because spot foreign exchange trading can not only meet the needs of the temporary payment, can also help buyers and sellers of foreign currency adjustment positions to avoid the proportion, exchange rate risk.
Forward transactions: to distinguish the spot foreign exchange market transactions in refers to clinch a deal, according to a forward contract provisions after, in future date (usually in 3 days after the specified date) trading forex trading. Usance forex trading is effective in the foreign exchange market indispensable part. In the early 1970s, within the scope of the international exchange from fixed exchange rate system mainly by orientation, exchange rate fluctuations floating exchange rate, financial market development, so as to promote the development of a long-term foreign exchange market.
Foreign currency futures trading: with the development of futures market, as commodity trading media currency (foreign) also become objects of futures trading. Foreign currency futures trading refers to foreign buyers and sellers in future time (a), in the organization of the exchange (similar to the open outcry auction) the price, to buy or sell a specified number of standard currency transactions. Here, a few readers may be some vague concepts, explained below: a specific number, standard currency (such as: the pounds) each futures contract number is same, such as pounds a futures contract amount for 25,000 pounds each. B: refers to the particular currency, in the contract clause trading currencies, such as the specific type of 3 months, 6 months of dollars, etc.
Foreign exchange trading: fx options are often regarded as a kind of effective hedge, because it can eliminate potential risk to retain the devaluation might benefit. We introduce the forward transactions in foreign currency, the date of delivery can be specific (such as 1 May), also can be the specific period (e.g., May 1-5 months 31). However, the two methods are full of duty for delivery. Foreign exchange transactions refers to the party option (option holder) have the right, and can decide whether (delivery) and. If you want peace, the buyer (holders can allow options expire without delivery. No right to decide whether the contract.
