Financial market The foreign exchange market is also an important part of the system, that is, the foreign exchange market and the trading of bills and securities denominated in foreign currencies. It can be said that all foreign exchange transactions, including foreign currency loans, remittances and sums, are different kinds of foreign currencies, and are a foreign exchange trading system composed of the central bank, foreign exchange banks, foreign exchange brokers and customers, which realizes the international transfer of purchasing power, promotes international financing and reduces foreign exchange risks. The foreign exchange market is an organic whole composed of many factors, which has its own formation and operation, including supply and demand mechanism, exchange rate mechanism and efficiency mechanism of this mechanism. Traditional foreign exchange market transactions mainly include spot foreign exchange transactions, forward foreign exchange transactions, arbitrage transactions, arbitrage transactions and swap transactions.

1。 Divided into free foreign exchange and bookkeeping foreign exchange.

2. According to the delivery time, it can be divided into spot foreign exchange (or foreign currency freely convertible into cash, depending on whether ...) and forward foreign exchange (or foreign exchange).

According to the source of foreign exchange transactions, foreign exchange and non-trade foreign exchange each scored 3 points.

1 Spot foreign exchange transaction (spot transaction): Also known as "cash transaction", it refers to the transaction between buyers, and the transaction is delivered within two working days.

2. After the forward foreign exchange transaction, the foreign exchange seller: ...

Also known as "forward transaction", it refers to foreign exchange transactions in which buyers and sellers actually deliver the future date according to the agreed exchange rate.

3 Swaps (swap transactions):

(1) concept: buy or sell foreign currencies at the same time, and sell or buy foreign currencies with the same amount but different delivery dates.br/>(2) form: a) about cash.

3) Forward swap

2) spot forward swap is spot.

Foreign exchange transaction: also known as spot transaction or cash transaction, refers to foreign exchange transaction, and both parties to the transaction complete the transaction settlement procedures within the same day or two trading days. Spot foreign exchange transactions are the most commonly used transactions in the foreign exchange market, accounting for the vast majority of all foreign exchange transactions. Spot foreign exchange trading can not only meet the buyer's demand for temporary payment, but also help buyers and sellers adjust the proportion of foreign exchange positions and avoid foreign exchange risks.

Forward foreign exchange transactions: the stages of spot foreign exchange transactions are different. After the transaction is completed, according to the future provisions of the forward contract (usually trading after three working days), foreign exchange transactions represent major market transactions according to the provisions of the trading day. Forward foreign exchange trading is an important part of the effectiveness of the foreign exchange market. In the early 1970s, under the international background of exchange rate system, from fixed interest rate to turn-based system oriented by floating exchange rate, exchange rate fluctuations intensified and financial markets flourished, thus promoting the development of forward foreign exchange market.

Swap transaction refers to the form in which both parties agree to exchange an asset in the transaction at some future time. More precisely, he said, both sides agreed that the future cash flow of swap transactions in a certain period of time has been considered to have the same economic value (cash flow). Currency swap and interest rate swap transactions are more common between the two parties. Currency swap Wen Yi is a trade exchange between two currencies. Generally speaking, it refers to the exchange of capital and principal between two currencies. Interest rate swap transactions are generally not accompanied by the principal exchange of currency exchange rates between the same type and different types of fund exchanges. Swaps, futures and options trading have developed rapidly in recent years and have become an important tool for international financial institutions to hedge foreign exchange risks and interest rate risks.