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What is the behavior of using foreign exchange futures to lock the exchange rate?
Using foreign exchange futures to lock the exchange rate belongs to arbitrage. Locking foreign exchange is locking the exchange rate. In banks, this business is called forward settlement and sale of foreign exchange. In the case of frequent exchange rate fluctuations, banks handle the operation of locking the exchange rate for enterprises. On the day of settlement, the settlement is not based on the foreign exchange quotation of the day, but on the previously determined exchange rate.