Foreign exchange is a payment tool for international transactions. Since the economic level and comprehensive strength of countries are inconsistent, there is an exchange rate, which is the exchange ratio. For example, if more than 6 yuan of RMB is exchanged for 1 U.S. dollar, then the RMB pair The exchange rate of the U.S. dollar is about one to six. From this, we can see the economic strength of each country.

Foreign exchange spot

Foreign exchange spot transaction is referred to as spot exchange transaction, which can be concluded immediately according to the market price. It is simple, fast, has low transaction costs and can be completed immediately. The foreign exchange margin trading we often refer to is this kind of foreign exchange spot.

Foreign exchange futures refer to the purchase and sale of foreign exchange at an agreed price on a certain day in the future. Foreign exchange futures are traded through futures exchanges. The product contracts are very formal, the transaction information is transparent, and the exchange's supervision is also remarkable.

Foreign exchange options are also foreign exchange transactions. The option buyer has the right to buy or sell at the agreed exchange rate at the agreed time.

China has clear laws that stipulate that mainland companies are not allowed to set up companies to organize citizens to speculate in foreign exchange.

Currently, all foreign exchange companies in China are foreign companies. As long as they are regulated formal platforms, they are legal because the government does not interfere with citizens’ personal investments and the transactions do not occur domestically.

To explain, for example, if you travel to the United States and go to an American foreign exchange company to conduct foreign exchange margin trading, this is naturally legal. At present, the role of domestic foreign exchange companies is to save you the step of going abroad.

But if your funds are not remitted abroad, it is definitely not a legal company. Because every amount of foreign exchange transactions must be subject to strict supervision by international financial regulatory agencies.