What is the difference between foreign exchange bid price, foreign exchange price, and cash bid price?

1. What is Cash Exchange notes ~ ~

There is no such problem in the currency of a country, but foreign currencies have a problem of "sinks" and "banknotes" in other countries (such as the dollar in China).

First, the so-called foreign banknotes/notes are foreign currency banknotes (such as Dollar notes, $1, $20, $100, etc.),
The foreign currency/spot is the record form of overseas currencies.

There is no difference when you use them in the United States, but if you use these two "foreign currencies" in China there will be a difference,
The main source of the difference is that cash is required to actually be "transported" between countries and costs are required.
So the value of cash is a little lower than the spot.

For example, when you convert $1 into renminbi, the bank gives you RMB 7.4 according to the cash bid price 7.4.
If you have a spot in your account, the bank will give you RMB 7.45 according to the spot bid price of 7.45.

In our country, cash and spot are open bank accounts separately, the spot is from foreign or other domestic Exchange accounts transferred/remitted to your account,
Your cash can not be converted into a spot in the country (unless approved by the authority), and your spot will be easier to turn into cash.

2. What is the difference between cash and spot in foreign currencies, and how do you get them separately?
Can I deposit cash into a current passbook to become a spot?

Many people often ask why banks ' foreign exchange deposits are divided into cash (foreign exchange households) and banknotes (foreign banknotes households), and there is a certain difference between the exchange rates of the two currencies.
Explaining the problem begins with the difference between the spot and the cash.

Cash mainly refers to the foreign currency which is freely convertible, which is carried or held by the person abroad, simply means the foreign banknotes held by the individual, such as USD, JPY, GBP, etc.;
Spot refers to foreign currency bills and vouchers, which are imported into or sent from abroad, and can be frequently contacted in our daily life, such as foreign remittances and traveler's cheques.

As the renminbi is the legal currency of our country, foreign currency notes cannot be used as a means of payment in our country, but only abroad can it become a currency.
Banks are required to pay for packaging, transportation, insurance and other expenses in their use.
And the Exchange as a book on the foreign currency, it's transferred out just carry on the book on the transfer can be.

Therefore, in the foreign exchange rate published by the bank is not equivalent to cash, the purchase price of cash is lower than the spot price.

The foreign exchange households and the foreign banknotes household principal and interest withdraw the same currency cash, all press 1:1 withdraw;
The bank will charge a certain percentage of the fee when the foreign banknotes is converted to a foreign exchange account.

3. The renminbi is published every day, what is the foreign exchange premium? To do what?
What is the difference between the foreign exchange price, the foreign exchange bid price, the foreign exchange price and the cash bid price?

A: The comparison between the two different currencies is called the exchange rate.

In China, the foreign exchange rate is quoted directly in renminbi, that is, a certain number of foreign currencies in the amount of RMB listed.
Each foreign currency is published 3 kinds of quotations, namely the foreign exchange bid price, the foreign exchange price, the cash purchase price.

The selling price is the price at which the bank sells the foreign currency to the customer, which is the price quoted by the customer at the bank.
The purchase price is the bank to the customer to buy foreign exchange or foreign currency when the price, it is divided into cash purchase price and spot bid price two kinds.
The spot price is the price at which the bank buys the spot, while the cash bid is the price at which the bank buys foreign currency notes.

4. What is the difference between the benchmark and the median price of the foreign exchange rate published by the bank?

1, the benchmark price is the main currency only, such as the United States dollar, sterling, euro, yen, Hong Kong dollar. The median price of a bank is based on the benchmark price,
The exchange rate weighted between the corresponding currency and the major currency. The median price of a major currency is its base price.

2, cash ratio, the bank can save a certain amount of money in custody and overseas transportation costs, so its price can be higher.
Spot and cash selling price is the bank to the customer to sell foreign exchange, whether it is cash or spot, currently can not be directly in China to pay,
Therefore, the potential existence of customers to pay overseas fees, the bank should be given the same price.

5. Several terms for foreign exchange trading.

The bid and ask prices are from the bank point of view.

Therefore, when the customer wants to sell the former currency, the purchase price, that is, the currency that the customer sells is multiplied by the bid price to obtain the required acquisition of the latter currency;
When a customer wants to sell the latter currency, it uses the Ask price, which is the currency that the customer sells, divided by the selling price to get the previous currency to be purchased.

Therefore, in order to reach the transaction price, the customer is better than the current purpose
A price higher than the current price should be entrusted when selling the former currency,
When a currency is sold, it is entrusted with a price that is lower than the current price.

Cash refers to foreign currency deposits deposited in the hands of a person, in foreign currency deposited in a bank account.
In the domestic exchange of the renminbi into euros, see the selling price (compared to the bank, is the bank to sell foreign currency).

A foreign exchange rate is a quoted price, which is what you offer when you face any Exchange agency.

The foreign exchange bid is the price you hold in exchange for renminbi, for example, 1 USD = 6.2309 RMB,

The selling price is that you hold the renminbi and buy foreign currency from the bank, for example, 6.2432 yuan can buy $1.

Every day 9 o'clock in the morning the National Foreign Exchange Bureau announces the intermediate price, which is the price of the bank's foreign exchange.

At present, the agency only has restrictions on the dollar buy-in price quoted by banks,
That is, the difference between the sale of the highest price and the minimum purchase price shall not exceed 1% of the median price announced by the Exchange Bureau, regardless of other currencies.

So as long as the banks remain within this range, the price of their own decision.

Because of BOC's position as a foreign exchange bank, the position is sufficient and the settlement volume is large, and the average pair is the cheapest in BOC.

Different bank foreign exchange management methods, some banks are hourly with the market adjustment once, some day is unchanged.
If it is a large amount of foreign exchange trading, the bank will not always have so many positions, usually real-time flat trading.

For example, if you ask for a $10 million purchase, the bank actually has no $10 million in hand,
He will buy 10 million through the market and sell it to you on the basis of his purchase price.

The bank's remittance to buy the money to sell the banknote sells is the bank as the main body representation method.

The spot is a foreign currency negotiable instrument which can be freely exchanged for bills of exchange and cheques.

Cash is a concrete and tangible foreign note coin.

Personal Foreign exchange trading business in accordance with the principle of currency change, cash can not be converted into a spot, you need to pay a certain money exchange fees.

The cost is much higher than buying the spot because the bank needs to tidy up and keep the transportation after buying the cash. So the money is cheaper than the remittance.

Cash refers to banknotes, which usually refer to notes and coins in foreign currencies or deposits deposited in banks with banknotes and coins.
The spot is mainly refers to the cheque, the remittance, the collection and so on international settlement method obtains and forms the bank deposit.

The purchase price of cash, the exchange rate used by a bank to buy foreign currency notes. As compared with the buy spot, the bank to buy cash to bear the higher costs. You sell the spot to the bank, which is to sell your foreign currency deposit to the bank. This foreign exchange deposit is transferred from your name to the bank's name from the moment you sell it to the bank. As long as the bank does the corresponding account processing, it can get the foreign currency deposit in the foreign bank immediately, and can start to calculate the interest immediately.
If the bank buys cash, because foreign currency cash cannot be used in the local circulation of the transaction, it needs to be sent to foreign countries, so it not only can not immediately obtain deposits and interest, but also to pay a fee to keep cash. By the time the cash accumulates to a sufficient amount, the bank will be able to ship the foreign currency notes abroad, in the presence of foreign banks. Until then, the bank can obtain foreign currency deposits in foreign banks and begin to receive interest. The specific fees to be paid by the bank for foreign currency notes include: Cash management fees, transportation costs, insurance premiums, packaging fees, etc., which are reflected in the difference between the purchase price of the cash and the spot bid.

The selling price is the price at which the bank sells the foreign currency to the customer, that is, when the customer is at the bank, and the bid price is the price at which the bank buys foreign exchange or foreign currency, which is divided into two kinds: cash bid and spot bid. The spot price is the price at which the bank buys the spot, while the cash bid is the price at which the bank buys foreign currency notes.
Spot and cash are different concepts and are two different forms of foreign currency deposited in the bank. Banknotes can be deposited and taken out, sinks not, can only be exchanged for money to be taken; but sinks can be remitted to foreign countries, such as remittances, not banknotes, must be converted into a spot.
The spot price and the cash ask price are the same, that is, the ask price.
Median price = (spot bid + spot ask)/2
The benchmark price is an intermediate price published by the People's Bank, and other commercial banks can make their own buying and selling prices according to the floating range stipulated by the people's banks on the base price.
The median price is formed by the market, and the benchmark price is published by the People's Bank.

So the average bank's cash bid is lower than the spot bid price. You can not buy cash to sell out, the current bank foreign exchange can only be processed through the counter.

What is the difference between foreign exchange bid price, foreign exchange price, and cash bid price?