1, buy first and then sell, that is, "buy more". When speculators expect a currency to appreciate, and the price of this foreign currency is relatively low in the foreign exchange market, they first buy this currency and sell it when the exchange rate of this currency rises. For example, in February, the USD/JPY was 1, which was equal to11JPY. Speculators think that the dollar will appreciate in April, so they spend 1 10000 yen to buy 10000 dollars. In April, as he expected, the dollar against the yen was 1.

2. sell first and then buy, that is, "short selling". When speculators expect a currency to depreciate, and the price of this foreign currency is relatively high in the foreign exchange market, they sell this currency first, and then buy this currency when it really falls, earning the difference. For example, in the above example, speculators think that the dollar will depreciate in April, and investors will sell $654.38+00,000 to get 654.38+065.438+000,000 yen. In April, as he expected, 1 USD was exchanged for 654.38+000 yen, and investors sold yen and bought 654.38+065.438+0000 yen.

In the forward foreign exchange market and the forward foreign exchange market, there are some formal differences in foreign exchange speculation, but the principle is the same.