Real-time trading, also known as spot trading or spot trading, refers to the trading behavior that both parties go through the trading procedures on the same day or two trading days after a foreign exchange transaction is completed. Real-time foreign exchange trading is the most commonly used trading method in the foreign exchange market, accounting for most of the total foreign exchange transactions. The main reason is that spot foreign exchange trading can not only meet the buyer's demand for temporary payment, but also help buyers and sellers adjust the currency ratio of foreign exchange warehouses and avoid foreign exchange risks.
The difference between forward foreign exchange trading and spot foreign exchange trading is that according to the forward contract, market participants will conduct foreign exchange trading in the future (usually three working days after the transaction) according to the specified date. Long-term foreign exchange transactions are an indispensable part of an effective foreign exchange market. In the early 1970s, the international exchange rate system changed from a fixed exchange rate to a floating exchange rate, and the exchange rate fluctuations intensified, and the financial market flourished, which promoted the development of the forward foreign exchange market.
With the development of the futures trading market, currency (foreign exchange), which used to be the medium of commodity trading, has also become the object of futures trading. Forex futures trading (forex futures trading) refers to the trading activities of foreign exchange buyers and sellers in an organized exchange in the future (one day in the future), offering a price (similar to auction) to buy and sell a certain standard amount of specific currency. In addition, some concepts may be a little vague to readers. A. Standard quantity: the number of futures trading contracts in a specific currency (such as pound sterling) is the same, for example, the number of futures trading contracts in pound sterling is the same, with an amount of 25,000. B. Specific currency: refers to the specific transaction currency specified in the contract terms, such as three months' Japanese yen and six months' US dollars.