Wednesday, July 29, 2009
Financial instruments
A spot transaction is a two-day delivery transaction (except in the case of the Canadian dollar and the Mexican Nuevo Peso, which settle the next day), as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot transactions has the second largest turnover by volume after Swap transactions among all FX transactions in the Global FX market.
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you know, this is not my language...but it is a language I am currently trying to understand. Maybe, I'll have some luck here. I know a little about funds but not so much on the larger scale. good luck with this!
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