Spot foreign exchange trading, also known as firm trading, is a transaction between big banks, and it is also a transaction between big banks acting as agents for big customers. After the transaction is concluded, the payment and delivery of funds shall be completed within two working days at the latest. Here, domestic banks mainly launch personal foreign exchange transactions suitable for minority groups to participate.
This kind of personal foreign exchange transaction, also known as foreign exchange treasure, refers to the transaction behavior of individuals entrusting banks to buy and sell one foreign currency into another with reference to the real-time exchange rate in the international foreign exchange market. This kind of foreign exchange transaction is different from the internationally accepted foreign exchange margin transaction. It has no short selling mechanism and financing leverage mechanism for margin financing and securities lending, so it is also called firm trading.
2. Spot foreign exchange transaction contract
Contract spot foreign exchange trading, also known as foreign exchange margin trading, margin trading or virtual trading, is a foreign exchange transaction conducted by investors through relevant financial companies (banks, dealers or brokers). At the same time, in this kind of transaction, investors need to pay a certain amount of foreign exchange trading margin and enjoy the leverage mechanism of the institution. Because of this trading method, investors can get more or less initial funds, so it has been sought after by the market in recent years.
From the transaction characteristics, this kind of foreign exchange deposit can help investors to save investment amount to a great extent, but it should be noted that although the amount of deposit paid by investors is small, the actual funds mobilized are large and the foreign exchange price fluctuates greatly. If there is a big deviation in investors' judgment on the foreign exchange trend, it is easy to cause the transaction to explode.
3. Futures foreign exchange trading
Futures foreign exchange trading refers to buying and selling a certain amount of another currency in dollars at a fixed exchange rate within an agreed date. Unlike spot contract trading, futures foreign exchange trading is conducted through a special futures market. At present, the futures markets in the world mainly include: Chicago futures market, the New York Mercantile Exchange futures market, Sydney futures market, Singapore futures market and London futures market. Futures trading market includes trading market and clearing center. After the buyer or seller reaches a transaction on the exchange, the clearing center becomes its counterparty until the futures contract is actually delivered.
In addition, the number of futures foreign exchange transactions is exactly the same as that of contract spot foreign exchange transactions, so investors can get a little understanding.
These are the types of foreign exchange with the largest proportion in the foreign exchange trading market. At present, foreign exchange mostly exists in the market as a financial commodity, and investors can choose appropriate trading varieties according to their own capital situation.