Apnay Analysis main USD index ko Zaroor Shamil rakhain

than a contract, and interest is not included in the agreed-upon transaction. Spot trading is one of the most common types of Forex Trading. Often, a forex broker will charge a small fee to the clie

nt to roll-over the expiring transaction into a new identical transaction for a continuum of the trade. This roll-over fee is known as the "Swap" fe

Spot[edit]
Main article: Foreign exchange spot
Forward[edit]
See also: Forward contract
One way to deal with the foreign exchange risk is to engage in a forward transactio

Main article: Foreign exchange swap
The most common type of forward transaction is the foreign exchange swap. In a swap, two parties exchange currencies for a certain length of time and agree to reverse the transaction at a later date

. These are not standardized contracts and are not traded through an exchange. A deposit is often required in order to hold the position open until the transaction is completed.

Futures are standardized forward contracts and are usually traded on an exchange created for this purpose. The average contract length is roughly 3 months. Futures contracts are usually inclusive of any interest amounts.

Currency futures contracts are contracts specifying a standard volume of a particular currency to be exchanged on a specific settlement date. Thus the currency f

utures contracts are similar to forward contracts in terms of their obligation, but differ from forward contracts in the way they are traded. They are commonly used by MNCs to

hedge their currency positions. In addition they are traded by speculators who hope to capitalize on their expectations of exchange rate movements.

A foreign exchange option (commonly shor liquid market for options of any kind in the world.
tened to just FX option) is a derivative wt

here the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. The options market is the deepest, largest and mos

Swap[edit]
Future[edit]
Main article: Currency future
Option[edit]
Main article: Foreign exchange option
Speculation[edit]
Controversy about currency speculators and their e

view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.[83]

See also: Safe-haven currency


Fig.1 Chart showing MSCI World Index of Equities fell while the US Dollar Index rose.
Risk aversion is a kind of trad

trade strategies provided by either experienced traders or market analysts. These signals which are often charged a premium fee for can then be copied or replicated by a trader to his own live account. Forex signal products are packaged as either alerts delivered to a user's inbox or SMS, or can be installed to a trader's trading platforms

See also[edit]