The operating mechanism of the foreign exchange market is an organic whole composed of various elements, which has its own formation and operating mechanism, including trading mechanism, exchange rate formation mechanism, supply and demand mechanism and risk mechanism.

(1) Supply and demand mechanism, the relationship between foreign exchange supply and demand is the main basis for the formation of market exchange rate, which in turn regulates the relationship between foreign exchange supply and demand and is the core of the supply and demand mechanism.

(2) Exchange rate mechanism refers to the relationship and interaction between exchange rate fluctuations and changes in foreign exchange supply and demand in foreign exchange market transactions.

(3) Efficiency mechanism is a mechanism that can promote fair, just and rapid trading in the foreign exchange market and promote the rational allocation of funds.

(4) Risk mechanism, mainly refers to the interrelation and interaction between the increase and decrease of risks and exchange rate changes in foreign exchange transactions. In a word, the above four mechanisms are not isolated from each other, but interrelated and interactive.