Spot trading is a transaction between big banks, and it is also a transaction between big banks acting as agents for big customers. After the transaction is concluded, the payment and delivery of funds shall be completed within two working days at the latest.
This paper mainly introduces the personal foreign exchange transactions launched by domestic banks for individuals and suitable for the participation of mass investors.
Personal foreign exchange trading, 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.
Up to now, many banks, such as industry, agriculture, China, construction, communications, China Merchants and China Everbright, have carried out personal foreign exchange trading business. It is expected that the competition of individual foreign exchange trading business will be more intense, the service will be more perfect, and foreign exchange investors will enjoy better service.
With the foreign exchange in hand, domestic investors can open accounts and deposit funds in any of the above banks, so that they can buy and sell foreign exchange through the Internet, telephone or over the counter.
Contract spot foreign exchange transaction (deposit transaction)
Contract spot foreign exchange trading, also known as foreign exchange margin trading, margin trading and virtual trading, means that investors and financial companies (banks, dealers or brokers) specializing in foreign exchange trading pay a certain proportion of funds (generally not more than 65.438+00%) to buy and sell foreign exchange of 6.5438 million, hundreds of thousands or even millions of dollars according to a certain financing multiple. Therefore, this kind of contract transaction only makes a written or verbal commitment to a certain price of a certain foreign exchange, and then waits for the price to rise or fall before settling the transaction, so as to gain profits from the changing price difference, and of course bear the risk of loss. Because this kind of investment needs funds more or less, it has attracted many investors to participate in recent years.
Foreign exchange investment appears in the form of contract, and its main advantage lies in saving investment amount. When buying and selling foreign exchange by contract, the investment amount is generally not higher than 5% of the contract amount, but the profit and loss are calculated according to the total contract amount. The amount of a foreign exchange contract is determined according to the type of foreign currency. Specifically, the amount of each contract is 1250000 yen, 62500 pounds, 125000 euros, 125000 Swiss francs, and the value of each contract is about 100. The amount of each contract in each currency cannot be changed according to the requirements of investors. Investors can buy and sell several or dozens of contracts according to their own margin or margin. Under normal circumstances, investors can buy and sell a contract with a margin of $65,438+0,000. When foreign currency rises or falls, investors' profits and losses are calculated according to the contract amount, that is, 654.38 million US dollars. Some people think that buying and selling foreign exchange by contract is more risky than buying and selling, but it is not difficult to see the difference by careful comparison. See the table below for details.
Suppose: 1 dollar exchange 135.00 yen to buy Japanese yen.
Form of deposit for actual sale
Buying 1 2,500,000 yen requires US$ 92,592.5910,000.00.
If the yen exchange rate rises by 100 points,
Profit $680.00 $680.00
The profit rate is 680/92,592.59 = 7.34% 0 680/1000 = 68%.
If the yen exchange rate falls by 100 points,
Loss of $680.00
The loss rate is 680/92,592.59 = 7.34% 0 680/1000 = 68%.
From the above table, we can find that the amount of profit and loss in the form of margin trading is exactly the same, but the difference is the amount of funds invested by investors. Buying and selling 1 2.5 million yen needs more than 90 thousand dollars, while the form of deposit only needs110 thousand dollars, a difference of more than 90 times. Therefore, taking the form of contract is more output with less input for investors, which is more suitable for public investment and can win more benefits with less funds.
However, we should pay special attention to the problem of buying and selling foreign exchange in the form of margin. Although the deposit amount is small, the actual mobilized funds are huge, and the foreign exchange rate fluctuates greatly every day. If investors misjudge the trend of foreign exchange, it will easily lead to the total annihilation of the deposit. Taking the above table as an example, the loss range is also 100, and the investor's 1000 will lose $680. If the yen continues to depreciate and investors fail to take timely measures, not only will the deposit be completely lost, but additional investment may be needed. Therefore, high returns and high risks are equal, but risks can be managed and controlled if investors use them properly.
In contract spot foreign exchange transactions, investors may also get considerable interest income. The interest calculation method of contract spot foreign exchange is not based on the actual investment of investors, but on the contract amount. For example, if an investor invests $ 654.38+0000 as a deposit and * * * buys five contracts of GBP, then the calculation of interest is not based on the investor's investment of $ 654.38+00000, but on the total value of five contracts, that is, the contract value of GBP multiplied by the number of contracts (62500 *5), so the interest income will be considerable. Of course, if the exchange rate falls instead of rising, investors will get interest, but they can't offset the loss of price changes.
Collecting money and interest does not mean that you can earn interest by buying and selling any foreign currency. Only by buying high-interest foreign currency can you get interest. Selling high-interest foreign currency not only has no interest income, but investors must also pay interest. Because the interest in different countries will be adjusted frequently, the payment or collection of interest in different currencies in different periods is different. Investors should be based on the interest rate standards published by dealers engaged in foreign currency transactions.
There are two formulas for calculating interest, one is for foreign currencies with direct pricing, such as Japanese yen and Swiss franc, and the other is for foreign currencies with indirect pricing, such as euro, pound and Australian dollar.
The interest calculation formula of Japanese yen and Swiss franc is:
Contract amount * 1/ purchase price * interest rate * days /360* contract quantity
The formula for calculating interest in euros and pounds is:
Contract Amount * Market Price * Interest Rate * Days /360* Contract Quantity
The method of contract spot foreign exchange trading can be to buy at a low price and then sell after the price rises, or to sell at a high price and then buy after the price falls. Foreign exchange prices are always fluctuating. This method of buying first and selling later can not only make profits in the rising market, but also make money in the falling market. If investors can use this method flexibly, they can gain and lose. So, how do investors calculate the profit and loss of contract spot foreign exchange transactions? There are three main factors to consider.
First of all, we should consider the change of foreign exchange rate. Investors can make money from exchange rate fluctuations, which can be said to be the main way to make profits from contract spot foreign exchange investment. The amount of profit or loss is calculated in points. The so-called point is actually the exchange rate. For example, 1 USD is converted into 130.25 yen, and 13025 yen can be said to be 13025 points. When the Japanese yen fell to 13 1.25, it fell by 65438+. Every point of each currency, such as Japanese yen, British pound and Swiss franc, represents a different value. In contract spot foreign exchange trading, the more points you earn, the more gains you make, and the less points you lose, the less losses you make. For example, an investor buys a 1 contract at a price of 1.6000. When the pound rose to 1.7000, investors sold the contract, that is, they earned 1 000, and the profit was as high as $6250. Another investor bought the pound at 1.7000. When the pound fell to 1.6900, he immediately threw away his contract, so he only lost 100, that is, he lost 625 dollars. Of course, the number of gain and loss points is directly proportional to the number of gain and loss points.
Secondly, we should consider the expenditure and income of interest. This article describes that buying high-interest foreign currency first will get some interest, but selling high-interest foreign currency first will pay some interest. If it is a short-term investment, such as the end of the transaction on the same day, or within one or two days, you don't need to consider interest expenses and income, because the interest expenses and income in one or two days are very small and have little impact on profit and loss. For medium and long-term investors, the interest issue is a crucial link that cannot be ignored. For example, if an investor sells the pound at a price of 1.7000, a month later, the price of the pound is still in this position. If you sell pounds and pay 8% interest, the monthly interest will be as high as $750. This is also a big expense. Judging from the current investment situation of ordinary residents, many investors pay more attention to interest income and ignore the trend of foreign currencies, so they all like to buy foreign currencies with high interest rates, resulting in more losses. For example, when the pound fell, investors bought the pound. Although a contract earned $450 a month, the pound fell by 500 points a month, losing 3 125 points. Therefore, investors should put the trend of foreign exchange rate in the first place and the income or expenditure of interest in the second place.
Finally, we should consider the expenses of handling fees. Investors buy and sell contract foreign exchange through financial companies, so investors should include this part of the expenditure in the cost. The handling fee charged by financial companies is based on the number of contracts bought and sold by investors, not on profit and loss, so this is a fixed amount.
The above three aspects constitute the calculation method for calculating the spot foreign exchange profit and loss of the contract.
The formula for calculating the profit and loss of Japanese yen and Swiss franc is:
Contract amount *( 1/ selling price-1/ buying price) * contract number-handling fee+/-interest.
The formula for calculating the profit and loss of euro and pound is:
Contract amount * (selling price-buying price) * contract quantity-handling fee+/-interest.
As an investment tool, foreign exchange margin trading is legal in Europe, America, Japan, Hongkong, Taiwan Province Province and other countries and regions, and dealers and trading behaviors are regulated by the government.
Futures foreign exchange trading
Futures foreign exchange trading refers to buying and selling a certain amount of another currency in US dollars at a given exchange rate on an agreed date. There are similarities and differences between futures foreign exchange trading and contract spot trading. Contract spot foreign exchange is bought and sold through banks or foreign exchange trading companies, and futures foreign exchange is bought and sold in specialized futures markets. At present, the futures markets in the world mainly include: Chicago futures market, the New York Mercantile Exchange futures market, Sydney futures market, Singapore futures market and London futures market. The futures market must include at least two parts: one is the trading market and the other is the clearing center. After the buyer or seller of futures trades on the exchange, the clearing center becomes the counterparty until the futures contract is actually delivered. Futures foreign exchange and contract foreign exchange transactions are both related and different. This paper introduces the specific operation mode of futures foreign exchange from the perspective of comparison between the two.
The number of futures foreign exchange transactions is exactly the same as that of contract spot foreign exchange transactions. Futures foreign exchange trading is at least one contract, and the amount of each contract has different provisions in different currencies. For example, a pound contract is also 62,500 pounds, the yen is12,500,000 yen, and the euro is125,000 euros.
There are strict rules on the delivery date of futures foreign exchange contracts, but not spot foreign exchange transactions. The delivery date of futures contracts is stipulated as Wednesday of the third week of March, June, September and 65438+February in a year. Similarly, there are only four contract delivery days in a year, and at other times, you can buy and sell, but you can't deliver. If the bank is closed on the delivery date, it will be postponed for one day.
The price of futures foreign exchange contracts is expressed by how many dollars a foreign currency is equal to. So except for the pound, the futures foreign exchange price and the contract foreign exchange rate are exactly the reciprocal. For example, the Swiss franc futures price in June 5438+February is 0.6200, and the reciprocal is exactly 1.6438+026.
There is no question of interest expenditure and income in futures foreign exchange trading. No matter buying or selling any foreign currency, investors can't get interest, and of course they don't have to pay interest.
Futures foreign exchange is traded in exactly the same way as contract spot foreign exchange. You can buy first and then sell, or you can sell first and then buy, so you can choose both ways.
The development of online foreign exchange trading
Since 1997, with the development of the Internet, online foreign exchange margin trading has become a popular foreign exchange trading method. Not only did inter-bank transactions begin to use online, but individuals also increasingly participated in the foreign exchange trading market through the Internet.
The development of online foreign exchange trading has broken geographical restrictions, making it easier for individuals and small institutional investors who had to rely on local brokers to participate in foreign exchange trading.
From June, 5438 to February, 2000, the United States passed the Futures Modernization Act, requiring all foreign exchange dealers to register as futures commission dealers (FCM) in the American Futures Association (NFA) and the American Commodity Futures Trading Commission (CFTC), and accept the daily supervision of the above institutions. Foreign exchange dealers who are unqualified or have not been approved within the time limit will be ordered to stop their business. The introduction of this bill has put online foreign exchange margin trading on the track of standardized development.
At present, the foreign exchange dealers registered by CFTC (Commodity Futures Trading Commission) in the United States include FXCM, MGFG, GAINCAPITAL, CMS-FOREX, etc.
The History and Present Situation of China's Foreign Exchange Trading Market
During the blind development of the futures market from 1992 to 1993, many Hong Kong foreign exchange brokers went to the mainland to conduct forex futures trading business without approval, and attracted a large number of domestic enterprises and individuals to participate.
Because the vast majority of domestic participants do not understand the foreign exchange market and foreign exchange transactions, blind participation has led to large-scale and large-scale losses, including a large number of state-owned enterprises.
1In August, 1994, the CSRC and other four ministries jointly issued a document to completely ban forex futures trading (deposit). Since then, the management department has always held a negative attitude and severely cracked down on domestic foreign exchange margin trading.
At the end of 1993, the People's Bank of China began to allow domestic banks to conduct firm foreign exchange trading for individuals. By 1999, with the standardization of the stock market, the profit margin of buying and selling stocks has been greatly reduced, and some investors have begun to enter the foreign exchange market. Domestic foreign exchange firm trading has gradually become a new investment method and entered a stage of rapid development. According to CCTV, foreign exchange trading has become the largest investment market except stocks.
Compared with the domestic stock market, the foreign exchange market is much more standardized and mature. The daily trading volume of foreign exchange market is about 1000 times that of domestic stock market. Therefore, although the trading rules are not completely in line with international practice, the personal firm foreign exchange trading business provided by domestic banks has attracted more and more participants.
Generally speaking, the vast majority of foreign exchange investors at home and abroad participate in the firm trading of domestic banks, and the margin trading will take some time for domestic investors because China is not yet open and the country's foreign exchange control policy.
/prod/wh/step 1_3.jsp