Types of Forex Market

 

The Forex Market is a global network of currency traders. It also consists of three different markets in which differ from functions and methodologies. However, they still engage on trades using currencies.

Spot Market

First is the Spot Market. The spot market is the direct delivery market, signifying the segment of the foreign exchange market wherein the transactions of currency are established within two days of the agreement. Deals under this segment are usually called Spot Transaction.

Futures Market

The futures market consists of trades that include future payment and future delivery at a fixed exchange rate which is likewise termed as the future rate. These agreements are uniform, which indicates that the foundations of the contract are set and non-negotiable. This market is more used by traders who make hefty currency trades and are in search for steady returns on their investments.

Forward Market

Lastly, the forward exchange market is the market where transactions are mostly done under sale and purchase of foreign exchange at some quantified date in the future which is generally after 90 days of the agreement. Transactions done under this market is usually termed as Forward Transaction.

Read also: Why Invest In Forex?

 

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