At the end of 1970s, the theory of foreign exchange options gradually developed. The reason for the late development of foreign exchange option theory is that the interest rate problem between the two currencies was not solved until the end of 1970s. As far as all financial commodity options is concerned, the "parameter" composition of foreign exchange options is the most complicated. The "parameters" of most options do not include interest rates and dividends, while stock options only include dividends; The parameters of foreign exchange options include the interest rates of two currencies, and its complexity is not difficult to imagine.
As far as the foreign exchange options market is concerned, options can be divided into two types: the first is the foreign exchange futures options market of futures exchanges, in which options traded are based on currency futures traded in futures exchanges, and options are derived. Its contract specifications, fluctuation range, trading and delivery methods, calculation and liquidation of the deposit are all stipulated by the exchange. This kind of foreign exchange futures options trading is limited to futures exchanges. The second is spot foreign exchange options. The trading of spot foreign exchange options is just like spot foreign exchange trading. The buyer and the seller decide the amount, term, price and other contract contents by themselves, as long as the buyer and the seller agree to the transaction contents. Generally speaking, the trading of spot foreign exchange options is negotiated by both parties without any intermediary, so it is over-the-counter trading? OTC) called it.
Option, as its name implies, is the holder's right to choose whether to perform the contract. People who buy options see whether the right they buy can generate income by exercising it when it expires or before. Let's use a simple example to illustrate the meaning of this sentence.
Suppose there is a company today. After careful analysis, it is determined that the real estate price of a certain plate in Guangzhou has room for substantial increase in the next three years. No matter whether the purpose of a company is to buy real estate or invest in wealth management, he has decided to seize this profitable opportunity. Therefore, Party A can sign a house pre-sale contract with the developer of this lot, and after paying the signing fee, deposit and project payment, according to the pre-sale contract, after the house is completed in the future, buy the house at a predetermined price. This pre-sale contract is actually a very simple option contracts.
In this pre-sale contract, when the buyer and the seller sign the contract, the amount of money (performance price) that Party A should pay when handing over the house at a certain point in the future (due date or settlement date) is finalized in advance. The subject matter of this contract is the property of a certain floor or unit designated by Party A. The deposit, contract payment, project payment and other expenses paid by a company are equal to the royalties paid by a company when purchasing this option. (Note: Expiration date, strike price, subject matter, royalties and other terms are all important terms in the option. )
The biggest advantage of the option is that the party who buys the option has the right to perform or not to perform after paying the royalty, and does not have to bear the obligation to perform or not to perform. Just like the example described above, someone bought the right to buy the house he designated at a specific price in the future. If the real estate price in this area really rises before the house is completed and delivered, someone will naturally be willing to fulfill the contract and buy the house at the originally agreed lower price. However, if, unfortunately, the property price in this lot falls before the house is built, A can choose to give up the right to buy this house, and the builder can't ask A to perform the contract. This is because A bought "rights", not "obligations". Of course, if one party decides not to perform the contract, the original use fee (deposit, contract payment, project payment, etc. ) must give up at the same time. Therefore, in the decision-making process of whether to sign the house pre-sale contract or whether to perform it when the project is completed, A will of course take the royalty into account. After going through such a process, someone gets an opportunity with unlimited profit space (rising house prices) and limited risk (loss of royalties).
Therefore, it is easy for us to find a choice in a business behavior that we can often see in our daily life. In the future, we will lead you into the world of choice with more examples. Then learn how to operate options in foreign exchange and other financial markets to gain more profit opportunities. One: carry trade, earning interest difference.
For those who want to hold foreign currency and preserve its value, but are unwilling to take too much risk, time deposit is the first choice.
Interest rates are different because of different currencies. For example, compared with RMB, the interest rates of British pound, Hong Kong dollar and US dollar are higher, while the interest rates of euro, Swiss franc and Japanese yen are relatively lower. If you hold a foreign currency with a lower interest rate, you can consider converting it into a foreign currency with a higher interest rate, and then saving it will get more interest. This can be said to be the most worry-free and commonly used investment method.
Take the arbitrage between Japanese yen and Australian dollar as an example. The one-year time deposit rate of Japanese yen is 0.0 1%, while the one-year time deposit rate of Australian dollar reaches 1.5%. Without considering the exchange rate fluctuation, the deposit interest income after the yen is converted into Australian dollar is 50 times of the original/kloc-0. However, the interest rates of foreign currency deposits in different banks are different, so it is necessary to compare the interest rates of foreign currency deposits in different banks before carrying out carry trade.
Second, foreign currency wealth management products ensure the safety of principal.
The foreign exchange wealth management products of banks are more popular than time deposits. Usually, Chinese and foreign banks have foreign exchange wealth management products that guarantee floating income. As long as it is held at maturity, it can ensure the safety of the principal and the expected rate of return is higher than that of foreign exchange deposits. Therefore, the bank's foreign exchange wealth management products are suitable for investors who pay great attention to the safety of principal and will not use funds for a period of time.
Banks have launched a lot of foreign currency wealth management products, with yields above 5%, which can make up for the shrinking income brought about by the appreciation of RMB and make a surplus. However, experts suggest that investors can choose such wealth management products with short term to avoid the risks brought by long-term RMB appreciation.
Investors should pay attention to the fact that some foreign exchange wealth management products of commercial banks must be held at maturity to ensure that the principal is not damaged. For example, China Merchants Bank does not allow early redemption, and HSBC stipulates that customers do not guarantee 65,438+000% of the principal. There are also financial services provided by foreign banks on behalf of customers, including investment in foreign funds, bonds, stocks and so on. Although the yield of such products is good, the principal is not guaranteed, and investors must have considerable risk tolerance.
Three: foreign exchange firm trading, using exchange rate fluctuations
It is also a common means of foreign exchange investment to profit from the rise and fall of exchange rate through the conversion of buying and selling between different currencies. Investors can convert firm offers between different currencies such as Hong Kong dollars, Australian dollars, US dollars, euros, Canadian dollars, British pounds, Japanese yen, Singapore dollars and Swiss francs through trading software, telephone banking and counters.
Since the foreign exchange market can trade 24 hours a day, the settlement method of foreign exchange firm trading is T+0. When the transaction is completed, the computer will complete the delivery of funds. Experts suggest that it is easier to find investment opportunities by observing exchange rate fluctuations for people with certain foreign exchange trading experience and plenty of time. For entry-level investors who are inexperienced and can't keep an eye on the market for a long time, they can entrust banks to set stop-loss orders. For example, if investors are bullish on the Australian dollar, the buying price of the Australian dollar can be set to 1. 1. When the Australian dollar exchange rate reaches this price (1.0506, -0.0035, -0.33%), the bank can pay the bill. If you are worried about the fall of the Australian dollar, you can also set a stop loss order.
Foreign exchange firm offer is risky, and both principal and income may be damaged. You can consider setting a reasonable stop-loss point. In addition, experts said that under the current two-way fluctuation and appreciation expectation of RMB exchange rate, it is not recommended to exchange RMB too much for investment.
Four: buying foreign exchange options has risks and benefits.
This is a foreign exchange trading method with relatively high risk coefficient, which is suitable for investors with high risk tolerance and rich experience in foreign exchange trading. Because investors may bear a greater risk, that is, the loss of option fees.
In this transaction, investors no longer buy foreign currency, but a "right" to buy or sell an agreed amount of foreign exchange assets at an agreed price at a certain point in the future. Through this trading method, investors can effectively hedge against exchange rate fluctuations to achieve value preservation, and can also use option price fluctuations to obtain investment income. For example, investors have pounds in their hands, but they need to use dollars after three months. At this time, he only needs to buy the call or put option of the US dollar and hold it until the execution date to realize hedging.
Foreign exchange options themselves also have arbitrage function. The value of the option itself will fluctuate with the exchange rate fluctuation. When the exchange rate is favorable to investors, the option price rises, and investors can sell the option before the expiration and get the investment income in advance.
For investors with high risk tolerance and rich experience in foreign exchange trading, buying foreign exchange options will be a better choice. For investors, before participating in foreign exchange option investment, they need to go through risk assessment and investigation to determine their true risk tolerance.
5. Invest through the foreign exchange trading platform
Foreign exchange trading platform refers to some independent traders with certain strength and credibility in the foreign exchange market, who report the buying and selling price of currency to investors 24 hours a day except holidays, and accept the buying and selling requirements of investors at this price. The platform can hold its own funds to trade with investors. When the market transactions are sparse, buyers and sellers do not need to wait for the counterparty to appear, as long as there is a "counterparty" to undertake the transaction, they can reach a transaction. This will form an uninterrupted business and maintain the liquidity of the market. 1. How to make a good investment plan
2. Correct trend line drawing
3. How can we guarantee to make a big profit every time?
4. How to find the entry point, stop loss point and profit target correctly?
5. Analyze yesterday's trading plan and implementation, and analyze the causes of problems.
6. How to make a scientific and reasonable trading plan?
7. How to find the trading point under the uncertain trend?
8. Psychology of foreign exchange trading
9. Correctly judge the liquidation time.
10. The habit of reverse thinking
1 1. How to find the inflection point?
12.k-line theory (inverted form, hammer line)
13. golden section theory
14. Chart morphology analysis (inversion and continuous morphology)
15. Market trend analysis
16. The correlation of currencies assumes that investors strictly abide by the trading principle and firmly believe that all of you can make profits in the foreign exchange market. The reason is that the financial market belongs to a professional field with strong discipline, and the theory and information analysis of the market can be studied and practiced slowly. If you are more cautious in trading, if you stick to your principles, you will have more chances to win. Therefore, following the buying and selling principle and running the scheduled trading plan is an indispensable way in foreign exchange trading.
(1) Investing with spare money
(2) Know yourself and yourself.
People who need to know their own personality, are impulsive or have a serious emotional tendency are not suitable for this market. Most successful investors can control their emotions, have strict discipline and restrain themselves effectively.
(3) Don't over-trade.
(d) Face up to the market and give up illusions.
Don't be emotional, look forward to the future too much and cherish the past. An American futures trader said: A hopeful person is a beautiful and happy person, but he is not suitable for being an investor. A successful investor can separate his feelings from his trading. The market is always right and always wrong.
(5) Don't change your mind easily.
(6) appropriate suspension.
Drop everything and go on holiday for a few weeks. A short break can help you re-understand the market and yourself, and help you see the direction of future investment. When you are too close to the forest, you can't even see the trees in front of you.
(7) Don't be blind.
Successful investors will not blindly follow the wishes of others. When everyone thinks they should buy it, they will wait for an opportunity to sell it.
(8) Refusing the opinions of others in time.
When you grasp the direction of the market and make a basic decision, don't change your decision easily because of the influence of others. Sometimes other people's opinions seem reasonable and make you change your mind, but only afterwards do you find that your decision is the most correct. In short, other people's opinions are only for reference, and your own opinions are the decision to buy and sell. The advice belongs to others, and the money is your own.
(9) The situation is unknown. Hold a wait-and-see attitude
Before deciding to buy or sell foreign exchange, we must maintain an optimistic view of the market, and we must have sufficient investment information, market information and a calm and relaxed mood.
(10) Avoid going against the trend.
As the saying goes, "Those who follow the wind live and those who go against the wind die" makes sense. In the foreign exchange market, it can be changed to "the homeopathic person earns, and the contrarian person pays". It is necessary to carefully observe the market, add objective basic analysis, supplemented by technical analysis of historical trajectory, and then enter the market conveniently.
(eleven) don't lose big because of small.
Do what you want. It is necessary to reserve the buying or selling price, profit and stop loss before and after entering the market. But this is only a forecast. Don't stick to a specific price. As long as the price deviates from the original target price not far, the final decision of buying and selling should be made according to the trend.