1. Inquiry: the 1 party that initiated the foreign exchange transaction initiatively inquires the buying price and selling price of the relevant currency after announcing itself. Inquiries mainly include transaction currency, transaction amount, contract delivery period, etc.

2. quote. Traders of foreign exchange banks who accept inquiry shall timely and completely quote the buying price and selling price of spot or futures transactions in relevant currencies.

3. Deal. After receiving the quotation, the inquirer expresses his willingness to buy or sell a certain amount of currency with a certain term according to the quotation. Then the quotation bank agreed to the deal.

4. confirm. When the foreign exchange trader of the quotation bank claims to have paid, the foreign exchange transaction contract is established, and both parties shall abide by their respective commitments.

5. delivery. The delivery parties shall timely and accurately remit the sold currency to the bank deposit account designated by the other party according to the requirements of the other party.

1. Definition: foreign currency, in English, refers to the creditor's rights held by monetary authorities (central bank, monetary management institutions, foreign exchange stabilization fund, Ministry of Finance) in the form of bank deposits, Treasury bills, long-term and short-term government securities, etc. Can be used when the balance of payments is in deficit. Including foreign currency, foreign currency deposits, foreign currency securities (treasury bonds, treasury bonds, corporate bonds, stocks, etc.). ) and foreign currency payment vouchers (bills, bank deposit vouchers, postal savings vouchers, etc.). ).

By 20 15, China ranks first in the foreign exchange reserves of governments around the world. The United States, Japan, Germany and other countries have a large number of private foreign exchange reserves, and the overall foreign exchange reserves of the country are much higher than that of China.

2. Broadly speaking, all assets in foreign currency owned by a country. It refers to the flow of money between countries and a specialized commercial activity of exchanging one country's currency for another country's currency to pay off international creditor's rights and debts. In fact, it is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds, long-term and short-term treasury bonds, etc. Can be used when the balance of payments is in deficit. In a narrow sense, it refers to various means of payment in foreign currency that are generally accepted by all countries and can be used for international settlement of creditor's rights and debts. Must have three characteristics:

1. ability to pay (assets that must be expressed in foreign currency);

2. Availability (it must be a creditor's right that can be repaid abroad);

3. Convertibility (it must be a foreign currency asset that can be freely converted into other means of payment).

Three. Function: Promote the development of international economy and trade. Adjust the surplus and deficiency of international funds. It is an important part of a country's international reserves and the main means of payment to pay off international debts.

Foreign exchange is a system engaged in foreign exchange trading and speculation. With the progress of science and technology, foreign exchange quotation, inquiry, purchase, sales, delivery and settlement are all carried out through computer networks, making transactions increasingly electronic and networked. Therefore, we say that foreign exchange is an invisible market and a paperless market for computers.