Foreign exchange futures, also known as currency futures, are futures contracts that convert one currency into another at the current exchange rate on the last trading day. Generally speaking, one of the two currencies is the US dollar. In this case, the futures price will be expressed in the form of "X dollars against other currencies". The expression of the futures price of some currencies may be different from that of the corresponding spot exchange rate of foreign exchange. Foreign exchange futures refers to a transaction in which both parties agree to convert one currency into another currency in a standardized contract at a certain time in the future according to the proportion agreed now. Refers to futures contracts with exchange rate as the subject matter, which are used to avoid exchange rate risks. It is the earliest variety in financial futures. Since the first foreign exchange futures contract was launched by the International Money Market Department of the Chicago Mercantile Exchange 1972 in May, with the development of international trade and the acceleration of world economic integration, forex futures trading has maintained a vigorous development momentum. It not only provides effective hedging tools for investors, financial institutions and other economic entities, but also provides new profit-making means for arbitrageurs and speculators.

Forward foreign exchange transaction, also known as forward foreign exchange transaction, refers to the foreign exchange transaction in which both parties agree on the trading conditions such as currency, amount, exchange rate and delivery time in advance and actually deliver after the expiration.

Forward foreign exchange business refers to the appointment to buy and sell foreign exchange business. Forward foreign exchange business refers to the foreign exchange business in which the buyer and the seller sign a contract to stipulate the currency, amount, exchange rate and future delivery time of foreign exchange, and then the seller meets and the buyer pays according to the contract.

In the case that exporters sell goods by short-term credit and importers buy goods by deferred payment, there are certain foreign exchange risks for them from transaction to settlement. Due to the fluctuation or change of exchange rate, the exporter's local currency income may be lower than expected, and the importer's local currency payment may be higher than expected.

In the practice of international trade, in order to reduce the foreign exchange risk, exporters with forward foreign exchange income can conclude contracts with banks to sell forward foreign exchange, and after a certain period of time, sell the foreign exchange income to banks at the price stipulated at the time of signing, so as to prevent the exchange rate from falling and suffering economic losses; Importers with forward foreign exchange charges can also sign forward foreign exchange contracts with banks, and after a certain period of time, they can buy from banks at the price stipulated at the time of signing, so as to prevent the exchange rate from rising and increase the cost burden. In addition, due to the existence of forward foreign exchange transactions, it is also convenient for exporters and importers with forward foreign exchange receipts and payments to calculate the costs of their exporters and importers in advance, determine the sales price and calculate profits and losses.