Foreign exchange futures are futures contracts based on currencies, also known as currency futures or exchange rate futures. The transaction of buying and selling foreign exchange futures contracts in the foreign exchange futures market is called foreign exchange futures trading. The concept of foreign exchange is composed of static foreign exchange in a broad sense and static foreign exchange in a dynamic sense.
Foreign exchange futures are futures contracts based on currencies, also known as currency futures or exchange rate futures. The transaction of buying and selling foreign exchange futures contracts in the foreign exchange futures market is called foreign exchange futures trading.
The concept of foreign exchange
Foreign exchange is the abbreviation for international exchange.
First: The broad static foreign exchange refers to all assets expressed in foreign currencies, while the narrow static foreign exchange refers to the means of payment and assets expressed in foreign currencies that can be used for international settlement.
Second: static generalized foreign exchange, which includes:
(1) Foreign currency cash, including banknotes and coins;
(2) Foreign currency payment vouchers or payment instruments, including bills, bank deposit certificates, bank cards, etc.;
(3) Foreign currency securities, including bonds, stocks, etc.;
(4) Special drawing rights;
(5) Other foreign exchange assets.
Third: Foreign exchange in a dynamic sense refers to the financial activity of converting one country's currency into another country's currency to settle international debts. That is, foreign exchange is equivalent to international settlement.
Foreign exchange futures and their generation and development
(1) Foreign exchange futures are the earliest varieties of financial futures. On May 16, 1972, the International Monetary Market Division (IMM) of the Chicago Mercantile Exchange launched foreign exchange futures contracts, marking the birth of foreign exchange futures.
(2) In September 1982, the London International Financial Futures Exchange started foreign exchange futures trading with the help of the Chicago Mercantile Exchange's international currency market. Australia, Canada, the Netherlands, Singapore, Japan and other countries have also opened foreign exchange futures trading markets.
The main transactions for foreign exchange futures transactions outside the United States are: London International Financial Futures Exchange (LIFFE), Singapore Exchange (SGX), Tokyo International Financial Futures Exchange (TIFFE), French International Futures Exchange (MATIF), etc., Every exchange basically has a futures contract that trades its own currency with other major currencies.
(3) On June 1, 1992, Shanghai Foreign Exchange Adjustment Center took the lead in opening foreign exchange futures trading in China. But it was closed in July 1993 and June 1994. In April 2006, the China Foreign Exchange Trading Center and the Chicago Mercantile Exchange (CME) reached a cooperation agreement. The member units of the Foreign Exchange Trading Center can participate in the international money market (IMM) exchange rate and interest rate of the Chicago Mercantile Exchange (CME) global electronic trading platform. Product transactions.