O'Reilly logo

Forex Revolution: An Insider's Guide to the Real World of Foreign Exchange Trading by Peter Rosenstreich

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

4. The Basics of Foreign Exchange

All Forex investors must master the basic structure and vocabulary of the market before they trade. This chapter introduces and explains some of the basic investing tools and the way they work.

Spot

A spot or Forex transaction is the most basic exchange in the foreign exchange market. It is simply the exchange of one currency for another. Every Forex trade consists of two simultaneous transactions: a buying of one currency and a selling of another. That's why it is called a spot or cash transaction. Technically all transactions have a two-day settlement, except for Canadian transactions, which have a one-day settlement.

For example, one trader exchanges $1 with another trader for 105 yen, just as an American ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required