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The difference between foreign exchange futures trading and forward foreign exchange trading


The difference between highestrebateforex getforexrebate cashback forex rebateforex Forexrebateforyoudonesia Forex rebate for you forward foreign exchange trading Traders are different Foreign exchange futures trading, as long as the required margin, any investor can engage in transactions through foreign exchange futures brokers, the restrictions on the principal is not as good as forward foreign exchange trading, because in forward foreign exchange trading, the participants are mostly specialized securities dealers or good business relations with banks In forward foreign exchange trading, the participants are mostly specialized securities dealers or large manufacturers with good business relationships with banks, and individual investors and small and medium-sized enterprises that do not have a line of credit from banks have very little opportunity to participate in forward foreign exchange trading Trading Margin Both parties to a foreign exchange futures transaction are required to pay margin, and through the futures exchange daily liquidation, daily calculation of profit and loss, and make up or return excess margin while forward foreign exchange trading whether to pay margin, depending on the relationship between the bank and the customer, usually do not need to pay margin The forward foreign exchange trading profit and loss will be settled only on the expiration date of the contract Different trading methods Foreign exchange futures trading is carried out in the futures exchange in the form of open outcry trading parties do not contact each other, but each clearing house settlement intermediary, bear the credit risk futures contracts on trading currency varieties, delivery periods, trading units and price changes are limited to a few major currencies while forward foreign exchange trading is in the over-the-counter The transaction is conducted by telephone or fax, and the buyer and seller are counterparties to each other, and there are no currency restrictions, for the transaction amount and expiration date, are decided by the buyer and seller themselves This is in the economic downturn, the other party default risk increases, in the transaction time, place, price and market disclosure are no special restrictions Overall transaction In foreign exchange futures trading, usually in the national currency as the consideration for the purchase and sale of foreign exchange, such as In the U.S. market only to the U.S. dollar offer, therefore, in addition to the U.S. dollar other currencies such as the hedge between the mark and the yen, only the U.S. dollar as a proxy for the purchase and sale of yen or mark thus constituting two transactions and in forward foreign exchange transactions, different currencies can be traded directly between Spot settlement and settlement of differences Foreign exchange futures transactions due to the clearing house for the transaction intermediary, the amount, the period are specified, so not to implement spot delivery, for The amount of unsettled, calculated day by day, and through the margin increase or decrease for settlement, futures contracts are marked on the delivery date, but in this settlement date can be transferred, the implementation of hedging, reduce and diversify the exchange rate risk Of course, the actual difference should be spot settlement, and the proportion of this part is very small and in the forward foreign exchange transactions, to be settled or performed on the settlement date Chinas Shanghai foreign exchange transfer center The provisions of the foreign exchange period trading business, as in the listed foreign exchange and the RMB between the purchase and sale behavior, can be traded foreign exchange varieties limited to the U.S. dollar (U.S. dollar quota compared to the U.S. dollar spot), British pounds, Deutsche Mark, Japanese yen and Hong Kong dollar spot U.S. dollar, British pounds, Deutsche Mark, Hong Kong dollar the standard contract amount of 10,000 units, the standard contract amount of the Japanese yen is set at 10,000 yen

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