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Forward deal in forex

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Forward deal in forex

Post by olixlite on Wed Jun 18, 2014 6:58 pm

Forex deal refers to foreign exchange transaction whereby trades agree to buy currency pair on an agreed date on a forward exchange market. Trade are agreed on a spot rate and forward rate. The forward rate reflects expectation the participants have on changes . If the forward the forward rate and spot rate are the same the participant do not expect much change in the price of currencies over a period of time. The deals cannot be cancelled and standard amount cannot be traded in the agreement.The deal can be executed any time.

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