The foreign exchange market is the largest financial product market in the world. By September 2007, the average daily trading volume reached 3.2 trillion US dollars, equivalent to 30 times that of the US stock market and 600 times that of China stock market. Daily foreign exchange trading refers to the way of buying one currency in a pair of currency combinations and selling the other currency at the same time. The exchange rates of various currencies in the international market fluctuate frequently, and they are traded in the form of currency pairs, such as Euro/USD or USD/JPY.

The main advantage of the foreign exchange trading market lies in its high transparency. Due to the huge transaction volume, the main funds (such as government foreign exchange reserves, multinational consortium fund exchange, foreign exchange speculators fund operation, etc. ) has a very limited impact on market exchange rate changes. On the other hand, from the fundamental analysis of exchange rate fluctuations, it is usually the important data released by governments (such as GDP and central bank interest rates), the speeches of senior government officials, or the news released by international organizations (such as the European Central Bank) that can have a greater impact.

There is no specific place in the foreign exchange market, and there is no central exchange. All transactions are conducted between banks through the Internet. Any financial institution, government or individual in the world can participate in trading 24 hours a day. Firm foreign exchange trading is also called spot foreign exchange trading. Personal foreign exchange trading in China, also known as foreign exchange treasure, refers to the trading behavior of individuals entrusting banks to buy and sell one foreign currency into another with reference to the real-time exchange rate in the international foreign exchange market. Because investors must hold enough foreign currency to trade, the internationally popular foreign exchange margin trading lacks the short selling mechanism and financing leverage mechanism of margin trading, so it is also called firm trading. Since Shanghai Industrial and Commercial Bank 1993 began to act as an agent for individual foreign exchange transactions, with the substantial growth of individual foreign exchange deposits of Chinese residents, the introduction of new trading methods and the change of investment environment, individual foreign exchange transactions have developed rapidly and have now become the largest investment market except stocks in China.

So far, many banks, such as industry, agriculture, China, construction, communications, China Everbright and so on. , have carried out personal foreign exchange trading. Domestic investors, with foreign exchange in their hands, can open accounts and deposit funds in any of the above-mentioned banks, and can conduct foreign exchange transactions through the Internet, telephone or over the counter. Foreign exchange margin trading, also known as virtual trading, means that investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers for foreign exchange trading, that is, to enlarge the trading funds of investors. The financing ratio is generally determined by banks or brokers. The greater the financing ratio, the less money customers need to pay.