Foreign exchange can be divided into short-term transactions and long-term transactions according to the holding period. Generally speaking, short-term foreign exchange transactions can be defined as those with a holding period of one to two weeks, and those with a duration of less than one day can also be called ultra-short-term transactions.

Related vocabulary explanation

Foreign exchange transaction: Foreign exchange transaction is the exchange of one country's currency with another country's currency. Different from other financial markets, the foreign exchange market has no specific location and no central exchange, but transactions between banks, enterprises and individuals through electronic networks. "Foreign exchange trading" means buying one of a pair of currencies at the same time and selling the other. Foreign exchange is traded in the form of currency pairs, such as Euro/USD or USD/JPY.

Position: Before the expiration of physical delivery or cash delivery, investors can voluntarily decide to buy and sell futures contracts according to market conditions and personal wishes. However, investors (bulls or bears) hold futures contracts without performing reverse operations (selling or buying) in the same delivery month and quantity, which is called "holding positions". In the futures operation of gold and other commodities, whether buying or selling, all new positions are called opening positions. After the operator opens a position, he holds a position in his hand, which is called a position.