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Tuesday, July 2, 2013

How are trading Forex using financial contracts?

The foreign exchange market known as forex or currency market and other labels. Is the investment vehicle of dealing with different currency fluctuations and raw important goods such as oil, gold and silver. Are usually traded in pairs in order to take advantage of the rise and fall in the value of a particular currency at the expense of the other. This article will discuss the many financial contracts that are used to influence the deal.

How Forex trading: the spot (Spot)

Spot is a short exchange types. And you need a general rule to only two working days to be delivered. In some cases the transaction takes place after one business day as is the case with the euro and the U.S. dollar, Canadian dollar and the Russian ruble and the lira and others. The deal is described as a short, direct and include liquid assets such as cash rather than decades. And one can imagine that one to two days work does not include interest.

How Forex trading: Advanced decade (forward contract)

Provide this type of contract limit of adventure property for future positions because there is a specific exchange rate and agreed at a certain time in the future and this value is dedicated and specific. For example agree a buyer from the United States to buy heavy machinery from a vendor from Canada that the transaction takes place after 90 days at the exchange rate of the U.S. dollar value of 1.01920 apart from the real exchange rate.



How are trading Forex: foreign exchange swap

Is the type of contracts that provide advanced regardless certain at a specified time in the future. This contract applies to many trades as long as they are within the specified contract time. And financial كسند ask usually put the money to keep the account open until the transaction or contract expires.

How are trading Forex: Currency future

This is another form of advanced forms of contracts. In other words, is the ability to unify a certain exchange rate will be sold sometime in the future. The effectiveness of the contract continues for a period of 3 months and this includes interest if there was interest.

How are trading Forex: foreign exchange option (forex option)

This derivative gives the owner the right, but not the right of the obligation to exchange one currency for another. This exchange is characterized by a certain exchange rate and a specified future time. And because the nature of the forex market volatile and unpredictable, this type is more options upon request after the type of exchange.

Option exchange for the assumption (speculation)

With abhors a Alleged schools of thought on the grounds that they market gamblers lose his balance and show everything that is bad in it, the other school of thought suggest to Alleged imperative and accept their presence and recognize their essential role in Forex Trading. In any case, regardless of the school of thought that believes it should be understood every trader or investor or agent that the assumption of a lot of adventure on a personal financial level and on the level of penalties and taxes on both. It is therefore best trading only deals with accepted legal persons and they have power.

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