Foreign exchange cash market - sport FX market
11 important questions on Foreign exchange cash market - sport FX market
All transactions done at current cash price and in which settlement
Which spot currency trade only takes 1 day?
Credit Risk reduced on settlement date spot trades:
- Payment vs payment
- correspondent bank
- bilateral net compensation
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5 most actively traded currencies:
- USD
- EUR
- GBP
- JPY
- CAD
2 most traded currency pairs:
- EUR - USD
- USD - JPY
Market intervention based on expectations with an aim at generating profits from risk exposure
Market intervention with no underlying expectations
Market intervention based on reducing or eliminating risks
Opening long or short positions aimed at profiting from increases or decreases in prices
Opening a long and simultaneously a short position and it generally does not imply use of own funds
Contrary positions so that losses compensate gains
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