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Understanding Spot and Forward Currency Market Transactions
November 21, 2023
What are the differences between the spot and forward foreign exchange markets?
The spot foreign exchange market involves immediate exchange of currencies at the current market rate, settling within two business days. Conversely, the forward foreign exchange market involves agreements to exchange currencies at a specified future date and rate, allowing hedging against potential currency fluctuations.
Tags : Spot Market , Forward Market , Currency Transactions , Foreign Exchange Market