Forex can be traded by individuals, institutions and corporations. For currencysolutions.co.uk to provide its first-class services, it had to understand ways to do forex business. Actually, there three distinct ways they can do this; through the spot market, through the future market and through the forward market. A forex business thus refers to a business in which currencies are bought and sold. Foreign currencies must be sold so as to facilitate international trade. If you are living in the US and you want to go to see pyramids in Egypt, you must change the dollars into the Egyptian local currency. The market where you will sell your dollars and buy the Egyptian currency is referred to as the forex market. Individuals that sell the Egyptian currency to you are said to be engaged in forex business.
The desire to participate in international trade creates the need of exchanging currencies. This is what makes the forex market the largest in the world. Apparently, there is no central marketplace where foreign exchange takes place. Most of currency trading is conducted electronically. This implies that most of the transactions takes place on a computer network between traders a cross the world. The market is open 24 hours a day five and half days per week meaning that the forex business can be conducted any time during the 5 days. The trade is conducted in major financial centers of New York, London, Frankfurt, Tokyo, Zurich, Hongkong, Paris, Singapore and Sydney. The forex market can be very active any time of the day because as trading ends in the U.S, the forex market in Tokyo begins. The price quotes keeps on changing every time of the day. The changes in price quotes are what make those trading in forex to make profit or loss.
The Spot Market
Currencysolutions.co.uk understands that this is where the currencies are bought or sold according to the current price. The prices are solely determined by the supply and demand forces. There other parameter which can affect the prices. They include; the current interest rates, political situations, economic performances and the perception about future performances of one currency against the other. When a deal is finalized, it is referred to as a spot deal. In this deal, one party delivers a currency that has been agreed upon at a specified exchange rate. The trade may take two days before a settlement is reached.
The Forward and Future Markets
The future markets deal with contracts that represent a claim to a currency. The contract specifies the price per unit and the future settlement date. When it comes to the forward market, the contracts are bought and sold over the counter between two parties who must agree on the terms of the agreement. In the case of future markets, the future contracts are bought and sold based on the standard size and a specified settlement date. The future contracts have specified delivery and settlement dates and have a minimum price that cannot be customized. Note that both type of contracts are binding and are settled by exchanging cash upon expiry. Visit currencysolutions.co.uk if you want to receive recommendable forex business services.
- Fast Currency Transfers
- Personal Dealer
- Trust Pilot 9.9/10
- Minimum of £3000 trade
- Accepts no cash
Trust Pilot Rating 9.9/10
After visiting Currency Solutions I found them very pro-active in the currency transfers. Many many times I have used currency solutions as my main transfers for transferring currency to my bank abroad. I admit I have tried others in my day but speaking to a dealer/broker offers a more personable service. They are fast and friendly which never no issues, and as for me, I trust the trust pilot ratings which give them already 9.9/10