Options, foreign exchange futures, foreign exchange options, currency swaps, futures, etc.

1, option

Option refers to a contract, which originated in the American and European markets in the late18th century. This kind of contract gives the holder the right to buy or sell assets at a fixed price on or before a certain date. ?

2. Foreign exchange futures

Foreign exchange futures, referred to as FxFut, is the abbreviation of "foreign exchange futures". In a centralized futures exchange, both parties buy and sell another non-domestic currency through public bidding, and sign a contract to deliver a standard amount of foreign exchange at an agreed price on a certain date in the future.

For the sake of explanation, let's distinguish between forex futures trading in a broad sense and forex futures trading in a narrow sense.

3. Foreign exchange options

Foreign exchange option, also known as currency option, refers to the option that the buyer of a contract obtains to buy or sell a certain amount of foreign exchange assets at the specified exchange rate on a future agreed date or within a certain period after paying a certain option fee to the seller. ?

4. Reciprocal foreign exchange credit

Currency swap (also known as currency swap) refers to the exchange between two debt funds with the same amount, the same term, but different currencies, as well as the currency swap with different interest amounts. Simply put, interest rate swap is a swap between debts in the same currency, while currency swap is a swap between debts in different currencies.

5. Futures

Futures and spot are completely different. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts with certain mass products such as cotton, soybeans and oil and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.