The so-called forex futures trading refers to the trading behavior of buying and selling a certain amount of another currency with US dollars at the established exchange rate on the agreed date. Forex futures trading's concept is a basic concept that traders who are familiar with foreign exchange speculation should master when learning the basic knowledge of foreign exchange.
Characteristics of forex futures trading
One: a fixed trading place. Forex futures trading can only trade in the futures exchange, which is the place where people engage in futures trading. It is a non-profit organization, relying on membership fees and contract transaction fees to make up for its expenses. The main futures exchanges in the world are: Chicago Board of Trade, the New York Mercantile Exchange Board of Trade, Sydney Board of Trade, Singapore Board of Trade and London Board of Trade.
Two: the implementation of the deposit system. In the futures market, both parties must pay a certain margin when opening an account. The purpose of collecting deposit is to ensure that both buyers and sellers can fulfill their obligations. When concluding a contract, the initial deposit must be paid, generally 3%- 10% of the contract amount, which is mainly determined according to the exchange rate fluctuation of the transaction currency.
Three: forex futures trading implements a daily liquidation system. At the end of each business day, the clearing house settles each transaction, that is, the clearing house settles each transaction at the clearing price, and the profit-making party can withdraw the profit and the loss-making party can make up the position. Due to the daily liquidation, the customer's book balance changes every day.
Four. The transaction object is foreign exchange futures contract, which is a standardized futures contract with foreign exchange as the delivery content.
Five: forex futures trading, foreign exchange futures prices are related to spot foreign exchange prices.
Six: open tender. In forex futures trading futures trading, the buyer calls the buying price and the seller calls the selling price.