Forward foreign exchange quotation

The forward foreign exchange rate, also known as the forward exchange rate, is the exchange rate used by the two parties to reach a foreign exchange buying and selling agreement and agree to carry out the actual delivery of foreign exchange at a certain time in the future.

Forward foreign exchange trading

Forward exchange rate is the exchange rate used in forward foreign exchange buying and selling. The so-called forward foreign exchange buying and selling refers to foreign exchange transactions in which the buyer and seller do not deliver immediately after the transaction, but deliver at the agreed date. When this transaction is delivered, both parties deliver at the original agreed exchange rate, which is not affected by exchange rate changes.

Basic Concepts of Forward Foreign Exchange Quotations

The benchmark price is only available in major currencies, such as USD, GBP, EUR, JPY, HKD, etc.

The buying price refers to the price at which the bank buys foreign exchange, and the selling price refers to the price at which the bank sells foreign exchange. The difference is the bank's income.

The spot foreign exchange purchase price refers to the foreign currency that you withdraw from abroad in your account. The bank will not directly give you foreign currency. It will directly receive your foreign currency according to the fixed spot foreign exchange purchase price and give you RMB according to the exchange rate;

The cash purchase price is when you go directly to the bank with foreign currency to exchange for RMB;

The selling price is the rate at which the bank converts the RMB in your account into foreign currency when you need to remit foreign currency.

Cash refers to the paper money in circulation in the market, and spot exchange is a valuable security that represents the value of money.

What are the central parity, buying price, and selling price of the exchange rate?

The foreign exchange quotation price of the bank is generally 4, foreign exchange spot, buying price, foreign exchange spot selling price grid, foreign exchange cash buying price, foreign exchange cash selling price grid, their prices are added and averaged to get the spot middle price and the spot middle price foreign exchange

The median price, also known as the median exchange rate, is the average of the buying rate and the selling rate. Its calculation formula is: the median exchange rate = (buying rate + selling rate

Exchange rate) & pide; 2.

The buying and selling prices are looked at from the bank's perspective. When you sell foreign exchange to the bank, it is the buying price for the bank, which is called the buying price; when you exchange foreign exchange to the bank, the bank sells it, which is called the selling price; and when calculating the foreign exchange price, take the average of the two, which is called the middle price. There is also a buying price (also called the banknote price), which is the price at which you sell foreign currency cash to the bank. Because the cost of banks buying foreign currency cash is greater than that of foreign exchange, the buying price of banknotes is much lower than the buying price of foreign exchange. In addition to making money from loans, banks also earn the difference between selling and buying foreign exchange.

The forward exchange rate is based on the spot exchange rate, that is, expressed by the "premium", "discount" and "parity" of the spot exchange rate.

Under normal circumstances, the pricing method of forward exchange rate is to mark only the premium or discount number of the forward. In the case of direct pricing method, if the forward exchange rate is a premium, add the premium number on the basis of the spot exchange rate, which is the forward exchange rate; if it is a forward discount, subtract the discount number on the basis of the spot exchange rate, which is the forward exchange rate.

Forward exchange rates also have a buying price and a selling price, so the premium or discount of the forward exchange rate also has two numbers. In the case of direct pricing, if the forward exchange rate is a premium, the decimal of the premium is added to the buying price of the spot exchange rate, and the large number of the premium is added to the selling price of the spot exchange rate. In the indirect pricing method, if the forward premium is raised, the large number of the premium is subtracted from the selling price of the spot exchange rate, and the decimal number of the premium is subtracted from the selling price of the spot exchange rate. In the case of indirect pricing, if the forward premium is a large number before and the decimal number after, it means that it is a forward premium; if it is a decimal number before and a large number after, it means that it is a forward premium.

Foreign exchange quotation refers to the rate at which the national currency unit is exchanged for the currency unit of another country announced by the state's unified foreign exchange management agency. In China, the People's Bank of China publishes the central parity rate of the RMB against other major countries every day based on the price formed in the interbank foreign exchange market on the previous day. Customarily, it is synonymous with "exchange rate", "exchange rate", "foreign exchange market" and so on.

In our country, the foreign exchange quotation price adopts the method of direct pricing in RMB, that is, how much RMB is converted into a certain amount of foreign currency is listed and announced. Each foreign currency publishes three kinds of quotation prices, namely foreign exchange buying price, foreign exchange selling price, and cash buying price. The selling price is the price at which the bank sells foreign currency to the customer, that is, the price at which the customer goes to the bank to buy foreign exchange; and the buying price is the price at which the bank buys foreign exchange or foreign currency from the customer. It is divided into cash buying price and spot buying price. The spot buying price is the price at which the bank buys the spot exchange, while the cash buying price is the price at which the bank buys foreign currency cash.