Monday, November 2, 2009

2. What Is a Spot Market?

A spot market is any market that deals in the current price of a
financial instrument.Settlement of FOREX spot transactions usually
occurs within two business days. There are also futures and forwards
in FOREX, but the overwhelming majority of traders use the spot market.
The FOREX market is essentially a cash or spot market in which over 90%
of the trades are liquidated within 48 hours. Currency trades held longer than
this are normally routed through an authorized commodity futures exchange
such as the International Monetary Market.

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