After the reform of RMB exchange rate system, China's foreign currency financial assets, banks and enterprises are faced with avoiding and diversifying exchange rate risks, which leads to the preservation or appreciation of foreign currency financial assets. Foreign exchange options trading is increasingly regarded as an important hedging means. This paper discusses the concept, use and function of foreign exchange option trading, and puts forward the implementation scheme of RMB option trading.

Keywords: foreign currency options exchange; Hedging; exchange risk