The forward exchange rate is equivalent to an asset-based forward contract with the exchange rate as the target, that is, the exchange rate is traded at the agreed price in the future delivery (the so-called exchange rate transaction means that if we agree to trade 1 USD: 6.5 RMB one year later, the above 1: 6.5 will remain unchanged regardless of the exchange rate).

The spot exchange rate, as its name implies, is today's exchange rate.

Foreign exchange option is an option contract with the exchange rate as the underlying asset, which gives the option bulls the right to deliver at the agreed price in the future. Note that the difference between it and the forward exchange rate is that the latter must be traded, but the foreign exchange option bulls can choose not to trade (again, if they have foreign exchange options of 1: 6.5, and the exchange rate after 1 year is 1: 6.3, then I directly converted RMB into US dollars at that time with 1: 6.3. And must be implemented for a long time). Buying foreign exchange options requires paying a sum of money in advance as compensation for this right.