What is centralized foreign exchange bidding
FOREX Trade is the exchange of one country’s currency with another country’s currency. Unlike other financial markets, the foreign exchange market has no specific location and no central exchange. Instead, transactions are conducted through electronic networks between banks, enterprises and individuals.
Centralized bidding foreign exchange trading refers to the practice of foreign exchange transactions between multiple trading entities in the market and at the same time through a certain trading system or platform according to certain bidding rules. For example, the current trading practices in my country’s inter-bank foreign exchange market are based on the bidding rules of time priority and price priority.
How to conduct centralized foreign exchange bidding among banks
Currently, the inter-bank foreign exchange market provides two trading modes: centralized bidding and bilateral inquiry, and supports foreign currency lending transactions in the US dollar, the euro, and the Hong Kong dollar.
Concentrated bidding trading is a trading practice of internal securities trading in stock exchanges, and now my country’s Shanghai Stock Exchange and Shenzhen Stock Exchange have adopted this trading practice. Generally speaking, it refers to the situation where two or more buyers and two or more sellers determine the price of securities through public auction. In this form, there are competitions between buyers and sellers, and there are more people on both sides of the market. In centralized bidding, when the highest price proposed by the personnel on the buyer’s side is consistent with the lowest price proposed by the personnel on the seller’s side, the transaction price of the securities has been determined and the transaction can be concluded.
Centralized bidding transactions can be divided into verbal bidding transactions, written bidding transactions, and computerized bidding transactions.
It should be noted that centralized bidding includes two forms of collective bidding and continuous bidding, which is different from collective bidding.