Trading characteristics of foreign exchange: mainly divided into cash, spot, contract spot, futures, options, forward trading and so on. Specifically, cash transactions are transactions between tourists and people who need foreign exchange cash for other purposes, including cash and foreign exchange traveler's checks. Spot 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; Contract spot trading is a way for investors to sign foreign exchange contracts with financial companies, which is suitable for public investment; Futures trading is conducted at the agreed time and at the established exchange rate, and the amount of each contract is fixed; Option trading is an option to trade in advance whether to buy or sell a certain currency in the future; Forward transactions are delivered on the date agreed in the contract, and the contract can be large or small, and the delivery period is flexible.
In terms of meaning, foreign exchange is a creditor's right held by monetary management organs (central bank, monetary management institution, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds and long-term and short-term government securities. Can be used when the balance of payments is in deficit.
The general characteristics of foreign exchange include the flow of money between countries and a special commercial activity of exchanging one country's currency for another country's currency to pay off international creditor's rights and debts.
The general characteristics of foreign exchange also include being able to participate in the foreign currency trading market (commonly known as the foreign exchange market, which is the largest financial market in the world). Its trading methods include: real trading (spot foreign exchange trading) and virtual trading (foreign exchange margin trading).
According to the characteristics of foreign exchange, foreign exchange can be divided into freely convertible foreign exchange, limited freely convertible foreign exchange and bookkeeping foreign exchange; Trade foreign exchange, non-trade foreign exchange and financial foreign exchange; Hard foreign exchange and soft foreign exchange, or strong currency and weak currency.