Buy: do more, that is, predict that the market will rise.

First, the meaning of foreign exchange transactions

Foreign exchange transaction is the exchange of one country's currency with another. Different from other financial markets, the foreign exchange market has no specific location and no central exchange, but transactions between banks, enterprises and individuals through electronic networks. "Foreign exchange trading" means buying one of a pair of currencies at the same time and selling the other.

Second, the transaction method

Spot foreign exchange transaction: also known as spot foreign exchange transaction, refers to a foreign exchange transaction in which both parties agree to handle the delivery within two working days after the transaction.

Forward transaction: also known as forward foreign exchange transaction, foreign exchange transactions are not delivered after the transaction, but are delivered at the time agreed in the contract.

Arbitrage: Arbitrage refers to a foreign exchange transaction that uses different foreign exchange markets, different currencies, different delivery times and differences in exchange rates and interest rates of some currencies to buy from the low-priced party and sell from the high-priced party to earn profits.

Arbitrage: A trading method that uses the interest rate difference between the two countries' currency markets to transfer funds from one market to another to earn profits.

Swap transaction: refers to a transaction that combines two or more foreign exchange transactions with the same currency but opposite directions and different delivery dates.

Foreign exchange futures: the so-called foreign exchange futures refer to futures contracts with exchange rates as the subject matter, which are used to avoid exchange rate risks. It is the earliest variety in financial futures.

Trading of foreign exchange options: foreign exchange options are traded in foreign exchange, that is, the option buyer obtains a right after paying the corresponding option fee to the option seller, that is, after paying a certain amount of option fee, the option buyer has the right to buy and sell the agreed currency at the exchange rate and amount agreed by both parties in advance on the agreed expiration date, and the buyer with the right also has the right not to execute the above-mentioned sales contract.

Three. Common trade terms

exchange rate risk

Economic risk

Federal Deposit Insurance Corporation (FDIC) The Federal Deposit Insurance Corporation (FDIC) is the regulatory agency in the United States responsible for managing bank deposit insurance.

Federal Reserve Bank Federal Reserve Bank Central Bank of the United States

Fixed exchange rate The official exchange rate set by the monetary authority for one or more currencies.

Fixed interest rate This transaction type will pay a pre-agreed interest rate and remain unchanged during the transaction. Fixed interest rates are usually applied to bonds and fixed-rate mortgages.

Margin Call margin, a request for additional funds or other collateral issued by a broker or dealer, makes the guarantee amount reach the necessary amount to ensure the performance of the position moving in a direction unfavorable to the customer.

Flat (or Square) is flat (or flattened).

Floating interest rate is the opposite of fixed interest rate, and the interest rate in such transactions will fluctuate with the market interest rate or benchmark interest rate.