Skip to main content

Posts

Showing posts with the label Dollars

foreign exchange market

Foreign currency: SPOT RATE It is the rate at which a foreign exchange trade can be immediately transacted. The reason for spot market is          i.             Settle a commercial transaction through buying and selling local currency.        ii.             Settle a financial operation(e.g. buying FC for repayment of loan or interest)      iii.             Balance or hedge an unwanted position in FC      iv.             Increase/decrease a currency position as a speculative move owing to expected future currency movements. While some major currency are traded directly (Rs/SR, Rs/JPY) while smaller currencies are traded indirectly. The ba...