Current location - Trademark Inquiry Complete Network - Futures platform - How to use hedging in foreign exchange transactions?
How to use hedging in foreign exchange transactions?
Stop loss cannot be forgotten because of hedging. After all, stop loss is the king of correcting wrong trading. Only when you do the right thing, but the timing of entering the market is not good, Youyou suggests that you temporarily deal with it through hedging. In this way, you can not only ensure the security of your account, but also profit from the hedged list. However, if you find yourself misjudging the general trend, you must stop rather than hedge. Even if I didn't think there was anything wrong with the megatrend before, I just didn't grasp the opportunity to enter the market and hedged it. Once I found that the megatrend was still wrong, I couldn't hesitate at this time. I must close my position immediately and keep the list in the right trend.

Hedging should be done as early as possible, and the general trend is right, but the timing of intervention is not good. Hedging should be done immediately. Don't wait until the opening loss is big, which will weaken the hedging function and make it more difficult to unlock it in the future. In other words, if you choose to use the hedging function, you should take the initiative to use it, and only remember it when you are passive, and then use it. I am afraid things will be more complicated.

Foreign exchange transaction is the exchange of one country's currency with another. Different from other financial markets, the foreign exchange market has no specific location and no central exchange, but transactions between banks, enterprises and individuals through electronic networks. "Foreign exchange trading" means buying one of a pair of currencies at the same time and selling the other.

Trading means

1. Spot foreign exchange transaction: Also known as spot foreign exchange transaction, it refers to the foreign exchange transaction mode in which both parties agree to handle the delivery within two business days after the transaction.

2. Forward transactions: also known as forward foreign exchange transactions, foreign exchange transactions are not delivered after the transaction, but are delivered at the time agreed in the contract.

3. Arbitrage: Arbitrage refers to a foreign exchange transaction that uses different foreign exchange markets, different currencies, different delivery times and differences in exchange rates and interest rates of some currencies to buy from the low-priced party and sell from the high-priced party to earn profits.

4. Arbitrage trading: a trading method that uses the interest rate difference between the two countries' money markets to transfer funds from one market to another to earn profits.

5. Swap transaction: refers to a transaction that combines two or more foreign exchange transactions with the same currency but opposite trading directions and different delivery dates.

6. Foreign exchange futures: The so-called foreign exchange futures refer to futures contracts with exchange rate as the subject matter to avoid exchange rate risks. It is the earliest variety in financial futures.

7. Trading of foreign exchange options: foreign exchange options are traded in foreign exchange, that is, the option buyer obtains a right after paying the corresponding option fee to the option seller, that is, after paying a certain amount of option fee, the option buyer has the right to buy and sell the agreed currency at the exchange rate and amount agreed by both parties in advance on the agreed expiration date, and the buyer with the right also has the right not to execute the above-mentioned sales contract.

8. In the future, there will be a foreign exchange trading platform jointly established by banks and Internet investment companies to reduce unnecessary costs for personal investment.