You have dollars in your hand. Now you change dollars into Australian dollars, which means you buy Australian dollars at the bank selling price of 0.6252. If the exchange rate of the Australian dollar against the US dollar rises, the exchange rate of the Australian dollar against the US dollar rises from 0.6320/0.6252 to 0.6280/0.6302, which is 50 points higher than your buying price (that is, the selling price of the bank at that time was 0.6252).

The best understanding is: Australian dollar (commodity)/US dollar (currency)

Coca-Cola (commodity)/RMB (currency)

You exchange Australian dollars for dollars just as we exchange RMB for Coca-Cola. The price of Coca Cola will go up next month. Let's buy Coca-Cola in RMB first, and put it away. Doing business is called buying goods and opening positions. When Coca-Cola rises to a certain profit, it will be sold to others, and we will make the difference.

If the price of Coca-Cola is reduced next month, we will sell our Coca-Cola first and exchange it for RMB. Or borrow 10,000 bottles of Coca-Cola from Zhang San to sell first, then buy Coca-Cola with RMB, and then return it to Zhang San after the price of Coca-Cola is reduced. We will earn the difference again, which is called emptiness.

You got it? Doing foreign exchange is like this. Beijing doctor Li.