This document discusses foreign exchange, including how it is classified and held by monetary administrations. It defines a foreign exchange broker as an intermediary who connects buyers and sellers of foreign exchange to facilitate transactions for a fee, without taking on trading risks. The document also describes the work of foreign exchange brokers to provide financial planning, advice, and maintenance to customers. It defines foreign exchange trading platforms and gives operating hours for major foreign exchange markets.
2. Foreign exchange
• Foreign exchange is a
creditor’s right that can be
used in the balance of payments
deficit held by the monetary
administration (central bank,
monetary authority, foreign
exchange leveling fund and the
Ministry of Finance) in the
form of bank deposits, treasury
bills, long-term and short-term
government securities. In 2015,
China ranked first in the
world’s foreign exchange
reserves.
3. Classification
• By degree of restriction
1. Freely convertible foreign
exchange
2. Limited free exchange of
foreign exchange
3. Accounting for foreign
exchange
•By source
1. Foreign exchange for
trading
2. Non-trade foreign
exchange
3. Financial foreign
exchange
4. Forex broker
• A foreign exchange broker is an
intermediary who introduces
clients to foreign exchange
transactions. He does not trade
foreign exchange himself, he only
connects foreign exchange buyers
and sellers and facilitates
transactions. The income of
foreign exchange brokers is
obtained by collecting foreign
exchange trading spreads and
handling fees. And they do not
bear the trading risks themselves.
5. Work content
• Foreign exchange margin business
expansion
• From the perspective of customer
interests, they provide professional
financial investment planning with
scientific professional knowledge and
technology
• Provide reasonable advice and suggestions
to help customers avoid risk
• Serve and maintain stock customers and
return to customers regularly.
6. Trading platform
• The foreign exchange trading
platform refers to some
independent traders with
certain strength and
credibility in the foreign
exchange market, which
constantly report the buying
and selling price of the
currency (two-way quotation)
to the investors. The
investors accept the trading
requirements at the price.
7. Platform time
Wellington Forex Market, New Zealand: 04:00-
12:00
Australian Foreign Exchange Market: 6:00-14:00
Tokyo Foreign Exchange Market: 08:00-14:30
Singapore Foreign Exchange Market: 09:00-16:00
London Foreign Exchange Market: 15:30-00:30
Frankfurt Foreign Exchange Market: 15:30-00:30
New York foreign exchange market: 21:00-04:00
