Foreign exchange is a payment voucher expressed in foreign currency for international settlement. The International Monetary Fund's interpretation of foreign exchange is that foreign exchange is a creditor's right held by the monetary authorities in the form of long-term and short-term government securities, treasury bonds and bank deposits. Can be used when the balance of payments is in deficit. Monetary authorities include monetary authorities, foreign exchange stabilization funds, central banks and the Ministry of Finance.

Foreign exchange can adjust the surplus and deficiency of international funds and promote the development of international economy, and it is also an important part of a country's international reserves.

What's the difference between foreign exchange and stocks?

The main differences between them are different space, different standards and different trading methods.

① Space is different: the foreign exchange market is a global market, which is intangible; The stock market is a regional market, which is tangible.

② Different standards: In the foreign exchange market, due to its global characteristics, the market has a high degree of freedom, so we can trade together and follow the principle of fairness and good faith, without other requirements and rules; In the stock market, different regional markets have different rules and characteristics, but in the same stock market, everyone abides by unified standards.

③ Different trading methods: the buyers and sellers in the foreign exchange market are open, and they can make inquiries and quotations freely and trade freely; The stock market is completely different. The standard stock market adopts the combination of centralized bidding and centralized trading to complete the transaction, which embodies the principle of fairness. The same stock cannot have different trading prices at the same time.