When buying and selling foreign exchange, investors can not only earn the exchange rate difference, but also exchange one foreign currency at hand for another foreign currency with higher interest rate, thus obtaining higher interest income.

For example, buy 2 lots of GBP/USD at 1.5002, and the price is 1.5002. When the interest rate rises to 1.5052, the seller holds foreign exchange and earns 50 points.

At present, China only allows firm trading. The money bought and sold is generally a freely convertible currency. When banks start foreign exchange trading business, the types of currencies have been determined in advance, such as USD against JPY, GBP against USD, USD against HKD, etc. You must exchange it according to the predetermined type.

Extended data

Foreign exchange trading means

Investors can conduct self-help transactions at bank counters, by telephone or through personal financial terminals. Usually, if you conduct over-the-counter transactions, you only need to give your personal identification, foreign exchange cash, passbook or deposit certificate to the counter service personnel for handling.

Foreign exchange trading mode

Technology investors can choose to trade at the market price, that is, close the transaction immediately according to the current quotation of the bank. You can also choose to entrust the transaction, set the transaction price in advance, and leave the transaction instructions to the bank. Once the quotation reaches a predetermined level, the bank will immediately close the transaction according to the instruction.

China People's Bank official website-foreign exchange trading tips