Mainly rely on hedging transactions to resist risks.
For example: Forward refers to foreign exchange transactions between major customers of financial institutions according to the agreed time, amount and exchange rate. , for example, Company A and Company B agree to pay USD 1,000 at a price of RMB 8/USD after 10 days. Futures have public trading venues. For example, Company A expects to receive 80 million yuan in one month and plans to use the funds to pay Company B’s payment of US$10 million. Then Company A can trade at a price of 8 RMB/USD. Buy US$10 million in foreign exchange futures. On the delivery date (that is, one month later), if the exchange rate becomes 8.3, Company A will make a profit of 3 million (8.3-8) × 1000 from the futures market, which together with 80 million in cash can be exchanged for 10 million US dollars; 7.8, then Company A loses 2 million (7.8-8) × 1000 in the futures market, but the company only needs RMB 78 million to exchange 10 million U.S. dollars, and the remaining 2 million is exactly a hedge against the loss of 2 million. No matter how the exchange rate changes, Company A always exchanges 80 million yuan for 10 million US dollars.