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What is forex futures trading?
Forex futures trading is one of the ways of foreign exchange trading. After a foreign exchange transaction is concluded, both the buyer and the seller do not provide the spot, but only provide a certain amount of deposit, and conclude a contract to handle the actual foreign exchange business at the agreed exchange rate in the future. This is one of the main measures to avoid exchange rate risk. The delivery period is generally 1 month, 3 months and 6 months. In foreign trade, exporters hope to expand exports and enhance the international competitiveness of export commodities; For the convenience of financing, importers often sign forward payment contracts. It is unpredictable that the fluctuation of currency exchange rate will cause greater losses to both sides in several periods before the payment is realized. In order to avoid exchange rate risk, importers need to buy foreign exchange futures that expire in advance; In order to avoid exchange rate risk, exporters also need to sell foreign exchange futures that expire in advance; Foreign exchange banks need to balance their positions by buying or selling forward foreign exchange futures to ensure the safety of their business and funds. \ r \ For more information about forex futures trading, please visit:/ask/a684eb1615831328.html? Zd view more content