In the forex market, there are many types of transactions, here we consider the more common ones.
Futures contracts for the supply of currency. Currency futures are a form of sales transactions in the Forex market by value at the time fixed by the conclusion of the operation with the supply (the execution of the transaction) on the appointed date. Purchase and sale, the seller on which further undertakes to implement, and the buyer – to purchase fixed amount of currency at a specified price before a certain date. It should be noted that the buyer has every right to resell the contract to another trader in the Forex market if the trend becomes for him an unfavorable nature.
Forward – a transaction in the Forex market, account for which you are at the end of pre-specified period. Forward operation is typically used as a security risk. The ratio of interest rates on the loan multiplied by the spot rate is calculated forward rate.
Swap – an operation in the Forex market, which is the simultaneous sale and purchase of currency for the same amount, but with different dates of execution of the contract. In other words, the first trade in the Forex market one kind of currency will be received in exchange for another delivery by the deadline. According to the second transaction is the same currency will be sold in exchange for another delivery in a different time. Such deals often carry out the banks. From time to time they simply make an exchange the two currencies with a further return, but with different delivery times: one forward, and on the other – the spot.
Spot – an operation in the Forex market in a short time in which the calculation. In most cases it is two days.
Futures contracts are traded on the stock exchange market and possessing proper credentials and regulatory standards. Contracts and forward spot – this is the interbank or OTC foreign exchange market transactions in which, basically, make the central and commercial banks.