Il:ExchangeRateEg: Supposing that one day the bank quote the exchange ratebetween USD and JPY (middle rate) for $ 1=￥ 120, theexchange rate between USD and EUR (middle rate) for $ 1=1.0050, therefore, the exchange rate between EUR and JPY iscalculated as follows:$ 1 / $ 1= 120 / E 1.0050So the exchange rate between EUR and JPY is1= ￥ 113.7441
II: Exchange Rate Eg: Supposing that one day the bank quote the exchange rate between USD and JPY (middle rate) for ＄1=￥120, the exchange rate between USD and EUR (middle rate) for ＄1= € 1.0050, therefore, the exchange rate between EUR and JPY is calculated as follows: ＄1／＄1= ￥120／ € 1.0050 So the exchange rate between EUR and JPY is €1=￥113.7441
Ill:Foreign exchange transactionSpot transaction and forward transactionSpot foreign exchange transaction: the foreign exchangetransaction that calls for the payment and receipt of the foreignexchange within two business days from the date when thetransaction is agreed upon. Forward foreign exchange transaction: the foreign exchangetransaction that calls for the payment and receipt of the foreignexchange in the future according to the forward foreignexchange contract after the transaction is agreed
III：Foreign exchange transaction ❖Spot transaction and forward transaction ❖ Spot foreign exchange transaction: the foreign exchange transaction that calls for the payment and receipt of the foreign exchange within two business days from the date when the transaction is agreed upon. ❖ Forward foreign exchange transaction: the foreign exchange transaction that calls for the payment and receipt of the foreign exchange in the future according to the forward foreign exchange contract after the transaction is agreed
Ill:Foreign exchange transactionPurpose of forward foreign exchange transactionSelling or buyingan equal amount of foreign currencyassetorforeign exchange liabilityto makethevalueHedgingoftheforeign currencyasset orforeign exchangeliabilityrepresentedbythenationalcurrencyavoidtheforeign exchange fluctuationBasedontheexpectedchangeoftheSpotexchangerate,toholdthebullorspeculationbear positionoftheforeignexchange,thento getthe revenueofExchangeexchangedifferencebyusingthespeculationForwardforeign exchangefluctuationspeculation
III：Foreign exchange transaction ❖Purpose of forward foreign exchange transaction Hedging Exchange speculation Selling or buying an equal amount of foreign currency asset or foreign exchange liability to make the value of the foreign currency asset or foreign exchange liability represented by the national currency avoid the foreign exchange fluctuation Based on the expected change of the exchange rate, to hold the bull or bear position of the foreign exchange, then to get the revenue of exchange difference by using the foreign exchange fluctuation Spot speculation Forward speculation
Basic knowledge米AUDUSDCADEUR米米NZDGBP资NOOALIIGITMMHOOALSTMMMCHFJPY
Basic knowledge USD EUR GBP JPY AUD CAD CHF NZD
Basic knowledgeMajor currency pairsEUR/USDGBP/USDUSD/JPYUSD/CHF
Basic knowledge ❖Major currency pairs ❖EUR/USD ❖GBP/USD ❖USD/JPY ❖USD/CHF