What is the difference between a spot transaction and a forward transaction in the foreign exchange market?
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What is the difference between a spot transaction and a forward transaction in the foreign exchange market? What are the key differences between forward contracts in foreign exchange and futures contracts in foreign exchange? Why are forward contracts more widely used in the foreign exchange market than are futures contracts?
Foreign Exchange MarketThe foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...
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A spot transaction involves exchanging currency immediately subject to a twoday sett...View the full answer
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Related Book For 
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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