Spot A spot transaction is a two-day delivery transaction , as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot … [Read more...]
Market psychology Of Foreign exchange trading
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways: Flights to quality Unsettling international events can lead to a "flight to quality," with investors seeking a "safe haven." There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. The Swiss franc … [Read more...]