When most people talk or write about the foreign exchange, they see the foreign exchange (see below) to see. However, you must be aware of the currency market for other types of investments can be found at:
1. The spot foreign exchange market Spot market (known as cash in the currency market) at the time of the call at that moment is the current or the current price. The argument is the price of the call immediately delivery. You to the bank every time we go to exchange Japanese yen and Canadian dollar, you are involved in the currency spot market. For the spot foreign exchange merchants, prices, foreign exchange broker, or you can contact via telephone trading to a particular currency and the price of the trading platform, please. Many retailers are the foreign exchange market foreign exchange transactions in the spot foreign exchange market. With the advent of new technology, a transaction of this type normally fast conclusions, but some 11 of the Canadian dollar and foreign exchange contracts, except for normal delivery time for the two seats.
2. In front of the foreign exchange market Forward foreign exchange market with the exchange rate is a more complex market. Forward transactions in the trade should be the difference in interest rates that account, and otherwise in, for example, your interest rate differential between countries currency transactions into the phone when the GBP / circle is relative (to the U.S. dollar against the British pound), account the interest rate difference between Britain and the United States must take. If you are interested in the United Kingdom United States and'5% to 3% of the interest, the interest rate differential is is'2%. The future of the currency exchange rate to calculate the value of the contract process, the account of the two countries in the future will attempt to raise rates. The future of the future exchange rate or interest rate within 3 days, but three years, most of the contract is 6 months. Future exchange rate is calculated as (Spot the interest rate differential (eg, interest rates on dollar - British pound interest rates) days/360 x) a / (1 + (British pound interest rates days/360 x) the Before the decision of the price of the currency notes in the future to predict the future, but the calculator out, it's the party of the future interest rate is a tool that can fix it. Monetary financial institutions and companies are passing the large domain.
3. Currency swap Currency swap transactions, and place in the future is a combination. This type of contract and commercial activity is very complex and multi-national companies are trying to get more speed. For example, the U.S. manufacturer of the car business in Europe than in the United States, but that relationship in the United States because of better believe interest rates will be. Manufacturer in the United States in the next 5 years will be borrowed money. The manufacturer of the banks in Europe and the United States responsible for the bank's future, the euro will trade U.S. dollar interest rates. Such as bank loans for the service in Europe, enough dollars and agree to pay a $ 1 returned car manufacturers, car manufacturers in Europe in euros in the bank agrees to pay. .
4.Monetary Gifts Currency futures contracts in the future currency fall. They, however, the contract size, expiration date and are traded on formal exchanges. Most of the currency of the seller is not traded on the Chicago Futures Exchange. Currency trading in currency futures market to retailers, but more on that exchange, you must be a member of the trade through foreign exchange transactions are more expensive. Another drawback of the market and the foreign exchange broker may only be used where the merchant is in danger, you can enjoy currency trading is the best gift I've merchants. Spot foreign exchange transactions, trends in rates of currency futures are known to report as a guide.
5. Currency Options Foreign exchange options are being introduced gradually, and they provide the buyer, not the rights and obligations to purchase or sale of foreign currency exchange rates and the date specified in the dictionary. For example, EURUSD rate in July 2009 at the price of 31 family for'2 0.1222 5 May foreign merchants bet. Then you can purchase currency options of'2 in the exchange rate 0.1190. If the price is above the foreign exchange merchants, even if the price of 2.1222, and 2.1190 at the market open to resellers in the currency must be purchased currency options profits. If you are not on the market reaches 2.1190, the call option to buy the phone has no obligation to the merchant. To be able to buy currency options, foreign merchants the option writer must pay a premium for is usually a bank or foreign exchange brokers.
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