Foreign Exchange Trading
1) Basic Definition
Foreign exchange trading means that bank accepts customer engagement at the spot or forward exchange rate of the day on the foreign exchange market. The customer may fully lock in exchange rate risk by finalizing and addition of foreign exchange asset.
2) Product Overview
1. Product feature: Foreign Exchange Trading are divided into spot trade，forwoard trade and foreign exchange swap. Spot foreign exchange trading make a conversion between different foreign currencies and settle in the two working days (incl.) after the transaction day; forward foreign exchange trading and foreign exchange swap can lock the exchange rate for customer so as to play the role of both value maintenance and risk prevention in the future.
2. Transaction currency: the currencies as USD, HKD, EUR, JPY, GBP, CHF, AUD, CAD, SGD, DKK, SEK, NOK and etc., including the direct trade of currencies to USD and the cross trade of two non-USD currencies.
3. Transaction term: operates the term of T+0 to several years; if the term is long, it can be judged whether to be transacted or not as the actual situation may be. Foreign exchange trading also can settle with prescribed foreign exchange rate on any working day within a certain contracted period in the future. Customers can choose the settlement date by themselves.
4. Customer scope: corporate customers mainly are two categories of non-financial institutional customer and financial institutional customer, including FTZ customer meeting regulatory provision, overseas institutional investor invested in domestic securities market, domestic purchase and sales business customer, overseas agent interest rate business customer and other customers meeting regulatory requirements.
5. Risk warning: risk and revenue coexist; if the exchanged rate cost has been locked, the additional revenue can’t be gained as the exchange rate changes to favorable direction. In addition, CCB will not accept the foreign exchange trading engagement with the speculative nature.
3) CCB Strength:
1. 24 hour ongoing trading in three places globally; CCB fulfills the operation of 24 hours foreign exchange trading in three places of Beijing, London and New York with strong transaction execution capability to save the transaction cost for customer.
2. Professional service. It is to staff professional research team to offer financial market research service to customer on daily and weekly basis.