1. As an innovative exchange rate risk management tool, the bank's personal forward foreign exchange trading business plays an important role in two aspects:
First, it provides investors with the tools to lock forward exchange rates, and avoids the risks that may arise from future exchange rate fluctuations. If the investor expects the US (USD)/day (JPY) to depreciate, he can use the personal forward foreign exchange trading business to lock the exchange rate of the future US (USD) exchange date (JPY) at the current market price to avoid the future beauty ( USD) The potential risk of falling prices;
Second, personal forward foreign exchange trading breaks through the restrictions on the available currency balance in the trading account, providing investors with more time to avoid exchange rate risks and participation. Personal foreign exchange trading can only sell the available currency balance in the account. The personal forward foreign exchange trading business has the effect of two-way trading under the premise of providing certain transaction guarantees. You can choose to sell a certain currency or choose to buy. In a currency, the transaction is not subject to the balance available in the account.
2. The trading principle of forward foreign exchange trading is reflected in the long-term trading characteristics:
First, the forward foreign exchange trading is the designated foreign exchange trading on the due date, and the expiration date of the forward foreign exchange trading is one day in the future. In CCB's personal foreign exchange trading business, the maturity date is any bank working day from the next day to three months.
Second, spot foreign exchange trading requires full capital delivery, and forward foreign exchange trading will be closed before the due date, except for the client’s application for delivery and payment of the full transaction principal for delivery. The difference in profit and loss is liquidated, which is good for both customer and bank control risks.
Third, forward foreign exchange trading introduces the concept of trading guarantees. Since the forward foreign exchange trading will close the position in most cases, and the difference will be settled on the maturity date, in order to ensure the smooth completion of the transaction, only a certain percentage of the client's transaction guarantee will be frozen. It is precisely because the customer actually only needs to have an eligible transaction guarantee when trading, the transaction guarantee currency and the selling currency do not need to be the same. Therefore, forward foreign exchange trading has the effect of leverage and the effect of two-way operation against the trend.
3. Experts from CCB International Business Department believe that investors should maximize the risk avoidance.
First of all, we must fully understand the risks of forward foreign exchange trading. If all the funds are invested in forward transactions to earn high returns, the risk is difficult to control.
Second, investors can make good use of the ratio of transaction guarantees to control their own transactions, so as to avoid losses caused by the system being forced to liquidate. The 10% minimum transaction guarantee ratio is only a lower limit. It does not necessarily require the customer to zoom in 10 times for each transaction. The customer can fully add the transaction guarantee according to his or her own will, so that the leverage ratio can be reduced to achieve the control risk. aims.
Third, customers need to pay attention to their own transactions in real-time when investing in long-term foreign exchange trading, which is a risky investment. This is necessary for any investment.