The most important forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled "immediately" or on the spot. In practice this means within two banking days.
There are some other types of Forex along with spot-market: swap contracts, forwards and futures. These called derivatives. Derivatives are powerful tools that can be used to hedge the risks normally associated with production, commerce and finance. Derivatives facilitate risk management by allowing a person to reduce his exposure to certain kinds of risk by transferring those risks to another person that is more willing and able to bear such risks.
But Forex offers a number of advantages over other types of forex trading, including:
There are some other types of Forex along with spot-market: swap contracts, forwards and futures. These called derivatives. Derivatives are powerful tools that can be used to hedge the risks normally associated with production, commerce and finance. Derivatives facilitate risk management by allowing a person to reduce his exposure to certain kinds of risk by transferring those risks to another person that is more willing and able to bear such risks.
But Forex offers a number of advantages over other types of forex trading, including:
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