The spot exchange rate is determined by the relationship between supply and demand of money at the time of spot delivery. The exchange rate listed in the general foreign exchange market generally refers to the spot exchange rate, except the forward exchange rate. The spot exchange rate in China is based on the central parity rate of RMB announced by the central bank on the same day.

Forward exchange rate, also known as forward exchange rate, refers to the exchange rate used when both parties reach a foreign exchange transaction agreement and agree to actually deliver foreign exchange at a certain time in the future. When the forward exchange rate reaches the delivery date, both parties to the agreement will make delivery according to the predetermined exchange rate and amount. Forward foreign exchange transaction is an appointment transaction, which is introduced to avoid foreign exchange risks because foreign exchange buyers need foreign exchange funds at different times.

Forward exchange rate refers to the exchange rate of forward market transactions, as opposed to the spot exchange rate. After the foreign currency buyer and seller make a transaction, they cannot deliver it immediately, but agree to use the agreed exchange rate for delivery in a certain period of time in the future. Forward foreign exchange is calculated according to the spot exchange rate. Under direct quotation, the forward exchange rate is low, and the difference is called discount; Forward exchange rate is high, and the difference is called premium. Under the indirect pricing method, the situation is just the opposite. The spot exchange rate is equal to the forward exchange rate, which is called the face exchange rate.