Foreign exchange transactions can be divided into cash, spot foreign exchange transactions, contract spot foreign exchange transactions, forex futures trading, foreign exchange options transactions, forward foreign exchange transactions, swaps and so on.
Contract spot foreign exchange trading, also known as foreign exchange margin trading, margin trading and virtual trading, means that investors and financial companies (banks, dealers or brokers) specializing in foreign exchange trading pay a certain proportion of funds (generally not more than 65.438+00%) to buy and sell foreign exchange of 6.5438 million, hundreds of thousands or even millions of dollars according to a certain financing multiple. Therefore, this kind of contract transaction only makes a written or verbal commitment to a certain price of a certain foreign exchange, and then waits for the price to rise or fall before settling the transaction, so as to gain profits from the changing price difference, and of course bear the risk of loss.
If it is cash, you can use the change of exchange rate for arbitrage.