A: Foreign exchange refers to the exchange of foreign currency. In fact, foreign exchange margin refers to the general term for occupying margin for foreign exchange transactions. Then, as a market with an average daily trading volume of10.5 trillion dollars, it will reach a market with an average daily trading volume of 4 trillion dollars by April 20 10. The size of the foreign exchange market is 46 times that of the global futures market. Because of this, the foreign exchange market is the most liquid market in the world.

Generally speaking, foreign exchange refers to foreign currency or various means of payment expressed in foreign currency, which is used for international settlement of creditor's rights and debts. Foreign exchange margin Foreign exchange margin is a kind of financial derivatives. It is a financial derivative that invests a certain proportion of funds in the foreign exchange market, trades in various currencies and conducts value-added transactions hundreds or even hundreds of times in the direction of exchange rate fluctuations, also known as leveraged foreign exchange. Margin foreign exchange came into being in the 1970s.

Foreign exchange margin has the characteristics of futures, also known as currency futures. It is a futures contract based on foreign exchange and the first variety of financial futures. Mainly used to avoid foreign exchange risk, that is, exchange rate risk.