(2) Arbitrage refers to the trading behavior that traders make use of the current exchange rate differences in different places, currencies and delivery periods to sell at low prices and sell at high prices to obtain profits. Arbitrage can be divided into two-corner arbitrage and triangular arbitrage (using cross exchange rate). Arbitrage has the characteristics of no risk, large amount and perishable.
(3) Forward foreign exchange transactions refer to transactions in which money is delivered (received and paid) two working days after a foreign exchange transaction is concluded. Forward foreign exchange transactions in the foreign exchange market can last up to one year, and forward transactions of 1-3 months are the most common. Forward transactions can be divided into fixed delivery date forward transactions and selective forward foreign exchange transactions.
(4) Arbitrage refers to the act of using the interest rate difference between the two countries to transfer funds from low-interest countries to high-interest countries, thus making profits. It can be divided into no arbitrage (there is no foreign exchange arbitrage transaction, and the arbitrage income is not guaranteed) and arbitrage (using the spread of different currencies to eliminate the risk of exchange rate fluctuations and obtain risk-free arbitrage income through forward foreign exchange transactions). )
(5) Swap trading refers to the foreign exchange trading activities in which buyers and sellers exchange and use another currency at a predetermined exchange rate for a period of time, which usually includes two transactions in opposite directions. It can be divided into spot-to-forward swaps (that is, buying or selling cash exchanges while selling or buying futures exchanges), spot-to-spot swaps (using alternate-day swaps to make market participants close foreign exchange positions and manage foreign exchange funds) and forward-to-forward swaps (two transactions with the same amount but opposite directions for futures exchanges with different delivery periods).
(VI) forex futures trading: forex futures trading refers to the foreign exchange transactions in which both parties buy and sell futures contracts for the delivery of a certain amount of foreign exchange at a specific exchange rate on a specific date in the future through the auction method of public outcry.
(7) Foreign exchange swap transactions: Foreign exchange swap transactions refer to transactions in which both parties agree to exchange a series of currency flows in a certain period of time in the future through forward contracts.