The FX market is the trading of currencies. But do you know how many alternatives you have at your disposal should you be interested to try it out?
Short answer: quite a few. In this second part of our series on financial instruments, we will talk about Forex Exchange Instruments and their 5 primary types: spot, options, forward, swap, and futures.
Foreign Exchange Spot (FX Spot)
The FX spot transactions involve a settlement between two counterparts and are fairly straightforward to understand. Here's what they have in common: