First of all, the overview of the two is different:

1. Overview of forward foreign exchange trading: Forward foreign exchange trading is a trading behavior of forward foreign exchange trading in the foreign exchange market, and spot trading is symmetrical.

2. Overview of foreign currency futures trading: refers to the trading of foreign exchange futures contracts by open bidding in the centralized trading market.

Second, the two trading methods are different:

1. Trading methods of forward foreign exchange transactions: including direct forward foreign exchange transactions and option forward foreign exchange transactions.

2. Trading methods of foreign currency futures trading: including on-site trading, entrusting member brokers to buy and sell, and centralized public bidding.

Third, the characteristics of the two are different:

1, characteristics of forward foreign exchange transactions:

(1) After signing the contract, both parties do not need to pay foreign exchange or domestic currency immediately, but postpone it to some future time.

(2) The transaction scale is large.

(3) The main purpose of trading is to preserve value and avoid the risk of exchange rate fluctuation.

(4) Contracts signed by foreign exchange banks and customers must be guaranteed by foreign exchange brokers. In addition, customers should also deposit a certain amount of margin or collateral. When the exchange rate changes little, banks can use deposits or collateral to make up for losses. When the exchange rate changes make the customer lose more than the deposit or collateral, the bank shall notify the customer to add the deposit or collateral, otherwise, the contract will be invalid. Deposits deposited by customers are regarded as deposits by banks and bear interest.

2. Features of forex futures trading:

(1) The actual delivery rate is mainly settled through hedging transactions, and the actual delivery rate is only 1%-2%.

(2) Implementation of performance guarantee, deposit system and additional deposit system.

(3) Price and its changes. The exchange has set the minimum fluctuation price and daily price fluctuation limit.

(4) The settlement business shall be settled by the settlement institution, and the deposit shall be settled on a daily basis.

Baidu Encyclopedia-Forward Foreign Exchange Trading

Baidu encyclopedia-foreign exchange futures