As already mentioned, the Forex market in broad terms includes not only the purchase and sale of one currency for another with calculations at once, that is today, but also at other time intervals.
The settlement date - that is, the date of the physical transfer of funds to counterparty accounts - in the financial language is called the value date (or Value date).
Usually, the following value dates are used in the financial market:
Note: all transactions concluded with the settlement date before the second business day are called cash conversion operations.
Note: The day of the conclusion of the transaction is the day in which the agreements were made with respect to the main parameters of the transaction:
The Forex market also uses transactions with a value date that is more than 2 business days from the date of the transaction - they are called forward transactions or urgent conversion operations. Value dates are agreed at the time of the transaction.
Derivative financial instruments such as options are also traded on the Forex market.
There are two types of options:
Depending on what the right arises when buying an option, buy or sell the underlying asset, allocate respectively the Call and Put options.
The most popular in the Forex currency market are transactions conducted on Spot terms. Usually, this is due to the need for time to process and settle accounts with a counterpart located in a different time zone.
Subscribe Updates, Its FREE!
|How to use MACD indicator effectively? (with pictures)|
|50 basic combinations of Japanese Candles|
|How to use Parabolic SAR indicator in Forex?|
|How to Use ADX (Average Directional Index) in Forex|