What are the trading methods of foreign exchange

How to trade foreign exchange:

1. Spot foreign exchange transaction : Also known as spot foreign exchange transaction, it is a foreign exchange transaction method in which both parties agree to handle the delivery within two business days after the transaction.
2. Forward transaction: also known as futures foreign exchange transaction, a foreign exchange transaction method in which the foreign exchange transaction is not delivered after the transaction is completed, and the delivery is carried out according to the agreed time in the contract.
3. Arbitrage: Arbitrage refers to the use of different foreign exchange markets , different currency types, different delivery times, and differences in some currency exchange rates and interest rates to buy from the low-priced party and sell from the high-priced party to earn profits. of foreign exchange transactions.
4. Arbitrage trading: A trading method that uses the difference in interest rates in the currency markets of the two countries 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 transaction directions and different delivery dates.
6. Foreign exchange futures: The so-called foreign exchange futures refer to futures contracts with exchange rates as the subject matter to avoid exchange rate risks. It is the earliest variety in financial futures.
7. Foreign exchange option trading: foreign exchange options are traded in foreign exchange, that is, the option buyer obtains a right after paying the corresponding option premium to the option seller, that is, the option buyer has the right to pay a certain amount of option premium on the agreed expiry date. According to the agreed exchange rate and amount agreed in advance by both parties, the seller of the right buys and sells the agreed currency at the same time, and the buyer of the right also has the right not to execute the above-mentioned sale and purchase contract.

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