What are the trading methods of foreign exchange trading?

There are many ways of foreign exchange trading, such as spot foreign exchange trading, forward trading, arbitrage trading, swap trading, foreign exchange futures and foreign exchange options trading. , are all ways of foreign exchange trading. If you want to trade, you can take a lot of handouts, but generally speaking, this is the way of trading, and we can choose any one of them. However, these different trading methods also have different meanings. Before trading, we should master the differences between these trading methods.

1. Spot transactions and forward transactions. First of all, let's distinguish between spot trading and forward foreign exchange trading. In fact, as can be seen from the name, spot foreign exchange transactions refer to foreign exchange transactions in which both parties are scheduled to deliver within two trading days after the transaction. However, forward transactions are different. Forward trading is a foreign exchange trading method that does not make delivery after the completion of foreign exchange trading, but makes delivery according to the contract and at the time agreed in the contract.

2. Arbitrage and arbitrage trading. Secondly, let's look at arbitrage and arbitrage. Arbitrage refers to using different foreign exchange markets, different currencies and different delivery times, and then using the difference between exchange rate and interest rate to sell at a low price and buy at a high price, from which we can earn more profits. However, arbitrage trading only uses the interest rate difference in different countries' money markets to transfer from one market to another, thus making a profit.

3. Swap trading, foreign exchange futures and foreign exchange options trading. In addition to the above trading methods, there are swap transactions, foreign exchange futures and foreign exchange options transactions. Swap trading is a kind of income with the same currency and opposite trading direction. Foreign exchange trading is a futures contract with the exchange rate as the target to avoid risks, and foreign exchange option trading is only carried out according to the agreed time. Later, a foreign exchange trading platform jointly organized by banks and internet investment companies also appeared, which can also reduce costs.