Spot forex

Posted by Scriptaty | 8:39 PM

The spot (cash) market is by far the most important sector of the forex world for individual traders. A spot market is one in which commodities or financial instruments, including currencies, are bought and sold for immediate delivery, which usually takes place the same or next business day.

This is the market in which retail traders are participating when they trade currencies through an online forex broker.

Although virtually no individual online forex traders will engage in forward and swap transactions, understanding how these trades work will give retail currency traders a better understanding of the larger market in which they operate.