Introduction:
Spot foreign exchange trading, also known as spot trading, refers to a kind of trading behavior in which both parties of foreign exchange trading go through the delivery formalities on the same day or two trading days after the completion of foreign exchange trading.
Transaction method:
Spot trading of foreign exchange in Shanghai Foreign Exchange Exchange is the most commonly used trading method in the foreign exchange market, accounting for most of the total foreign exchange transactions. Mainly because spot foreign exchange transactions can not only meet the buyer's temporary payment needs, but also help buyers and sellers adjust the currency ratio of foreign exchange positions and avoid exchange rate risks. Enterprises can eliminate the losses caused by exchange rate fluctuations within two days by conducting spot foreign exchange transactions with the same number and opposite direction as the existing open positions.
Profit model:
Simply put, spot trading is to make a profit through the price difference. For example, speculation in foreign exchange and spot gold are in stock. This way is much more convenient than buying physical silver and selling it after several years, because the price difference will fluctuate many times in one day, and with the two-way trading mechanism, if the operation is stable, 1 standard hand can easily make a profit of more than 3,000 yuan in 1 day.