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The Complete Idiot's Guide to Foreign Currency Trading, 2nd Edition by Lita Epstein, Gary Tilkin

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Chapter 3
Understanding Money Jargon
In This Chapter
• Reading the spots
• Going forward
• Finding swaps
• Checking out options
• Looking for futures
Trading in the world of money means you must learn an entirely new language to understand what the traders are talking about. You’ll hear traders talk about spot and forward transactions, swaps, options, and futures. This chapter introduces you to these terms and explains how you use them to trade foreign currency.

Spot Transactions

A spot transaction is the simplest type of transaction in the world of foreign exchange. It is simply the exchange of one currency for another. The spot rate is the current market price, also known as the benchmark price.
The actual transaction does not require immediate ...

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