At present, the foreign exchange transactions between China enterprises and China commercial banks can be mainly divided into cash, spot foreign exchange transactions, contract spot foreign exchange transactions, forex futures trading, foreign exchange options transactions, forward foreign exchange transactions, swaps and so on. The differences between forward foreign exchange transactions and forward settlement and sale of foreign exchange mainly include the following points:

1, with different meanings:

Forward foreign exchange trading is a trading behavior of forward foreign exchange trading in the foreign exchange market, which is symmetrical with spot trading. Forward foreign exchange trading is one of the important trading forms in the foreign exchange market.

Forward settlement and sale of foreign exchange refers to the settlement and sale of foreign exchange after the exchange rate is determined (both occur at the same time in spot settlement and sale of foreign exchange). The customer and the bank negotiate and sign a forward settlement and sale contract, stipulating the currency, amount, exchange rate and delivery period of future settlement and sale.

2. Different in nature:

Forward foreign exchange trading is a trading behavior of forward foreign exchange trading in the foreign exchange market; Forward settlement and sale of foreign exchange refers to the settlement and sale of foreign exchange after the exchange rate is determined.

3, the time is different:

The delivery period of forward foreign exchange transactions is generally 1 month, 3 months and 6 months, and some of them can reach 1 year. The purpose of this transaction is to avoid or minimize the possible losses caused by exchange rate changes.

Forward settlement and sale of foreign exchange means that on the delivery date, customers can handle settlement or sale of foreign exchange with the bank according to the currency, amount and exchange rate determined in the forward settlement and sale contract.

4. Different characteristics:

Forward foreign exchange buying transaction is a forward transaction that specifies the delivery time in advance. Its purpose is to avoid the risks brought by exchange rate changes over a period of time. The fixed delivery cycle is weekly and monthly, such as 1 week, 2 months (60 days), 6 months (180 days), etc. This is a common form of forward foreign exchange trading in practice.

Forward settlement and sale of foreign exchange can be agreed in advance on the exchange rate of future settlement and sale of foreign exchange in banks, so it can play a role in preventing exchange rate risks and maintaining value for customers with foreign exchange business in the future.

Baidu Encyclopedia-Forward Foreign Exchange Trading

Baidu Encyclopedia-Forward Settlement and Sale of Foreign Exchange

Baidu encyclopedia-foreign exchange trading