Current location - Loan Platform Complete Network - Foreign exchange account opening - What do you mean by buying forward foreign exchange?
What do you mean by buying forward foreign exchange?
Forward foreign exchange trading is a trading behavior of forward foreign exchange trading in the foreign exchange market, which is symmetrical with spot trading.

Forward foreign exchange trading is one of the important trading forms in the foreign exchange market. Usually it is also operated by foreign exchange banks and foreign exchange brokers who operate spot foreign exchange transactions. Forward trading is generally that buyers and sellers first conclude a sales contract, stipulate the quantity, duration and exchange rate of foreign exchange transactions, and then deliver at the exchange rate stipulated in the contract on the agreed date. The delivery period of forward transactions is generally 1 month, 3 months and 6 months, and some of them can reach 1 year. The purpose of this transaction is to avoid or minimize the possible losses caused by exchange rate changes. Speculators also often use forward trading to make profits. Therefore, many countries have certain restrictions on forward transactions.