1. Similarity:
The spot exchange rate represents the real-time exchange rate at the current point, such as 20 18 1.29 RMB to USD xxx, and the forward exchange rate represents the exchange rate at a certain point in the future, such as the agreed exchange rate of RMB to USD after 3 months, that is, April 29th, 2018. Similar to futures, forward exchange rates also indicate future prices. Both are contracts that stipulate to trade a certain number of subject matter at some time in the future. This problem can be understood as an agreement between the two parties to exchange money at a certain price at some time in the future. From the development of futures, forward can be said to be the basis of futures.
2. Difference
But there are many differences. First, forward contracts are over-the-counter transactions. It is only the trading time, amount, object and volume determined by the buyer and the seller after consultation. In addition to the contract, it is also necessary to negotiate how to perform the contract and other related matters. Because the forward contract is agreed by the buyer and the seller, the contract is not standardized, unique and not easy to transfer. At the same time, due to the lack of third-party supervision, whether it can be fulfilled at maturity depends on the credit of both parties. Futures contracts are traded on exchanges, and contracts are customized by exchanges, which are standardized contracts. Therefore, futures contracts are also more liquid. The margin trading system established by the exchange effectively prevents customers from defaulting.
The spread at home and abroad is the difference between China's currency (RMB) and other countries' currency interest rates. The strong domestic currency will lead to exchange rate fluctuations, and at the same time, funds will flow to countries with high interest rates to obtain high interest income. Therefore, by changing the money supply, the forward interest rate is changed.
Due to the existence of domestic foreign exchange control, there is no exchange rate futures in China for the time being, but investors who want to do exchange rate futures can open external accounts in Hong Kong through some regular domestic futures companies. If it is foreign exchange forward, swap, etc. , which can be operated in domestic banks.