Company: Shanghai Qigeng Information Technology Co., Ltd., legal representative ZhangZijian. The business scope of the company includes: general projects: technical service, technical development, technical consultation, technical exchange, technology transfer, technology promotion, advertising design, agency, advertising production, computer information system integration service, web page design and production, graphic design, business information consultation, etc.
I. Definition of foreign exchange
1, generalization
All foreign currency assets owned by a country. It refers to the flow of money between countries and a specialized commercial activity of exchanging one country's currency for another country's currency to pay off international creditor's rights and debts. In fact, it is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds, long-term and short-term treasury bonds, etc. Can be used when the balance of payments is in deficit.
2. Narrow sense
Various payment methods expressed in foreign currency, which are generally accepted by all countries and can be used for international settlement of creditor's rights and debts. It must have three characteristics: affordability (assets that must be expressed in foreign currency), availability (claims that can be compensated abroad) and convertibility (foreign currency assets that can be freely converted into other means of payment).
Second, foreign exchange trading methods
1, firm transaction
Firm foreign exchange transactions are those foreign exchange treasures and foreign exchange margin transactions of banks. The former can open an account through a bank, while the latter is mainly for some foreign dealers to open an account in China, because there is no domestic dealer. Firm foreign exchange trading is also called spot foreign exchange trading.
2. Virtual transactions
Foreign exchange margin trading, also known as virtual trading, means that investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers for foreign exchange trading, that is, to enlarge the trading funds of investors. The financing ratio is generally determined by banks or brokers. The greater the financing ratio, the less money customers need to pay.
3. Foreign exchange risk refers to the possibility that financial companies, enterprise organizations, economic entities, countries or individuals will increase or decrease the value of assets (creditor's rights, interest) and liabilities (debts, obligations) expressed in foreign currency due to unexpected changes in foreign exchange rates in a certain period of time. Foreign exchange risk may have two results, or gains; Or suffer losses.