What do banks think about foreign exchange trading? Is there a big risk in foreign exchange trading?

In the past, many people could only invest in foreign exchange through foreign dealers to pay margin, but they did not know that there was a more convenient and efficient way in China, that is, through the bank's foreign exchange real offer operation. What's the bank's view on foreign exchange trading? Is there a big risk in foreign exchange trading? Let's take a look at the relevant situation.

How do banks look at foreign exchange trading
When we go to banks to handle foreign exchange business, we can see that the listed exchange rates of designated foreign exchange banks are generally divided into buying rate, selling rate, middle rate, as well as the buying rate and selling rate of cash. So how do you look at the terms of these banks' foreign exchange trading?
The buying price refers to the price used by the designated bank of foreign exchange business to buy foreign currency from customers and sell them RMB.
The selling rate refers to the rate used by designated foreign exchange banks to buy RMB from customers and sell them foreign currencies.
What does the middle price mean? The middle price is actually the basis of the buying and selling prices. It is the average of the buying and selling prices in the interbank market obtained by banks from the foreign exchange trading center every day.
Foreign exchange business designated banks based on the middle rate, plus or minus a certain point spread, even if the bank and customers do foreign exchange transactions when buying and selling prices.


Is there a big risk in foreign exchange trading
Foreign exchange trading risk mainly refers to the risk borne by foreign exchange banks. It refers to the loss that foreign exchange banks may suffer due to exchange rate changes when foreign exchange positions are long or short in foreign exchange trading. The so-called foreign exchange position refers to the amount of foreign exchange held by foreign exchange banks. Banks often hold such positions and try to avoid foreign exchange risks through capital trading in the foreign exchange market. The risks that banks may encounter in foreign exchange trading can be divided into exchange rate risk, settlement risk, credit risk, country risk, liquidity risk, etc.

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