3 line BOLINGER BAND

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.

article: Foreign exchange swap
The most common

perform, and the and, in the process, affect its and gold have been traditional safe havens during time

Main 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

price that just balances the relative supplies of, and demand for, assets denominated in those currencies.”that many macroeconomic factors affect the exchange rates and in the end currency prices are

one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in power, thus demand, for that particular currency. However,

country's economy, the better its currency will s of political or trends that may rise from economic or cognitive bias known as anchoring, when investors focus too much on the relevance of s

constantly shifting, and the price of a currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest , the more healthy and robust

of dual forces of demand and supply. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are a

result
Financial instruments[edit]for a continuum of the trade. This roll-over fee is known as the "Swap" fee.

Futures are standardized forward contracts and are usually traded on an exchange created for this purpose. The

Future[edit]
Main article: Currency future
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 futures contracts are similar to forward contracts

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.

soaring US current account deficit.worth of these assets. The asset market model of exchange rate determination