3 thoughts on “What are the types of foreign exchange transactions?”
Alton
Foreign exchange transactions can be divided into cash, spot, contract spot, futures, options, and long -term transactions. Specifically, cash transactions are traded by tourists and buying and selling between those who need foreign exchange cash for various purposes, including cash, foreign exchange travel checks, etc.; Spot transactions are between large banks, and large bank agents and large customers. After the transaction agreed on the transaction, the capital collection and payment of funds will be completed within two business days; the contractual transaction of the contract is the way investors signed a contract with financial companies to buy and sell foreign exchange, which is suitable for public investment; futures transactions are according to the agreement. The time of time and the transaction according to the determined exchange rate, the amount of each contract is fixed; option transactions are transactions pre -pre -pre -made transactions to choose whether to purchase or sell certain currencies; Date handles delivery, the contract can be large or small, and the delivery period is more flexible.
1. Foreign exchange trading platforms are divided into two types: there are processing platform models and no processing platform models. Foreign exchange trading platforms with processing platform models are also called city merchants (MM). Foreign exchange trading platforms without processing platform models can be subdivided into STP, DMA/STP, and ECN STP. Among them, the city merchants, STP, and ECN are three basic models.
. Model Model Model: Under certain conditions, when traders want to buy, they will sell market merchants to the trader. When the trader wants to sell Buy it. The advantage of the market business model is that the market is sufficient liquidity, but the market business may intervene in the transaction and become a trading opponent of investors, so investors have potential conflicts of interest.
3. STP mode: The STP account is called a direct account, and the customer's order is directly sent to its liquidity provider (bank or other brokers). Trading in the interbank foreign exchange trading market. In fact, the orders of customers in the foreign exchange retail market will not be directly input to the market between bank institutions under any circumstances. In fact, the customer’s position is still in the trading offices, and the traders in the same direction and transaction volume trading behavior Traded the opponent with their own positions to form a virtual "straight into the market" model.
4. ECN mode: The transaction quotation in the ECN platform comes from the buyers and sellers. Based on the principle of price priority and time priority, the two parties are matched, but in the case of a unilateral market, the ECN model is easy There is a problem of insufficient liquidity.
1. Merchant Model Model: Under certain conditions, when traders want to buy, they will sell market merchants to the trader. When traders want to sell, they will buy them. The advantage of the market business model is that the market is sufficient liquidity, but the market business may intervene in the transaction and become a trading opponent of investors, so investors have potential conflicts of interest.
2. STP mode: The STP account is called a direct account, and the customer's order is directly sent to its liquidity provider (bank or other brokers). Trading in the interbank foreign exchange trading market. In fact, the orders of customers in the foreign exchange retail market will not be directly input to the market between bank institutions under any circumstances. In fact, the customer’s position is still in the trading offices, and the traders in the same direction and transaction volume trading behavior Traded the opponent with their own positions to form a virtual "straight into the market" model.
3. ECN mode: The transaction quotation in the ECN platform comes from the buyers and sellers. According to the principle of price priority and time priority, the two parties are matched, but in the case of a unilateral market, the ECN model is easy There is a problem of insufficient liquidity.
Foreign exchange transactions can be divided into cash, spot, contract spot, futures, options, and long -term transactions. Specifically, cash transactions are traded by tourists and buying and selling between those who need foreign exchange cash for various purposes, including cash, foreign exchange travel checks, etc.; Spot transactions are between large banks, and large bank agents and large customers. After the transaction agreed on the transaction, the capital collection and payment of funds will be completed within two business days; the contractual transaction of the contract is the way investors signed a contract with financial companies to buy and sell foreign exchange, which is suitable for public investment; futures transactions are according to the agreement. The time of time and the transaction according to the determined exchange rate, the amount of each contract is fixed; option transactions are transactions pre -pre -pre -made transactions to choose whether to purchase or sell certain currencies; Date handles delivery, the contract can be large or small, and the delivery period is more flexible.
1. Foreign exchange trading platforms are divided into two types: there are processing platform models and no processing platform models. Foreign exchange trading platforms with processing platform models are also called city merchants (MM). Foreign exchange trading platforms without processing platform models can be subdivided into STP, DMA/STP, and ECN STP. Among them, the city merchants, STP, and ECN are three basic models.
. Model Model Model: Under certain conditions, when traders want to buy, they will sell market merchants to the trader. When the trader wants to sell Buy it. The advantage of the market business model is that the market is sufficient liquidity, but the market business may intervene in the transaction and become a trading opponent of investors, so investors have potential conflicts of interest.
3. STP mode: The STP account is called a direct account, and the customer's order is directly sent to its liquidity provider (bank or other brokers). Trading in the interbank foreign exchange trading market. In fact, the orders of customers in the foreign exchange retail market will not be directly input to the market between bank institutions under any circumstances. In fact, the customer’s position is still in the trading offices, and the traders in the same direction and transaction volume trading behavior Traded the opponent with their own positions to form a virtual "straight into the market" model.
4. ECN mode: The transaction quotation in the ECN platform comes from the buyers and sellers. Based on the principle of price priority and time priority, the two parties are matched, but in the case of a unilateral market, the ECN model is easy There is a problem of insufficient liquidity.
1. Merchant Model Model: Under certain conditions, when traders want to buy, they will sell market merchants to the trader. When traders want to sell, they will buy them. The advantage of the market business model is that the market is sufficient liquidity, but the market business may intervene in the transaction and become a trading opponent of investors, so investors have potential conflicts of interest.
2. STP mode: The STP account is called a direct account, and the customer's order is directly sent to its liquidity provider (bank or other brokers). Trading in the interbank foreign exchange trading market. In fact, the orders of customers in the foreign exchange retail market will not be directly input to the market between bank institutions under any circumstances. In fact, the customer’s position is still in the trading offices, and the traders in the same direction and transaction volume trading behavior Traded the opponent with their own positions to form a virtual "straight into the market" model.
3. ECN mode: The transaction quotation in the ECN platform comes from the buyers and sellers. According to the principle of price priority and time priority, the two parties are matched, but in the case of a unilateral market, the ECN model is easy There is a problem of insufficient liquidity.