They can sell and buy currencies and can communicate with currency orders from different parties. The FOREX market is opened 24 days daily for five days weekly except holidays. Currencies might be traded on holidays when at least the global/country market is open. Our paper writers are committed to helping you secure the highest grades.
Working of the Currency Markets
Unlike commodities and shares, forex trading happens directly between the two parties on the OTC rather than on exchanges. This market is run by a global network of banks that are spread across the major 4 FOREX trading centers in various time zones: New York, London, Tokyo, and Sydney. As there is not any central location, you can trade 24 days a day.
There are three kinds of FOREX market that are discussed in our FOREX assignment help online as follows:
Spot market: The physical exchange of currencies takes place at the actual point when the trade is settled- either on the spot or within a very time period.
Forward market: The contract is entered into to sell or buy a certain amount of currency at a particular date. It has to be settled at a specific future date or within a range of specific dates.
Future market: It is a contract to sell or buy a specific amount of a currency at a set date and price in the future. Futures unlike forwards is legally binding.
The traders that speculate on FOREX prices shall not take delivery of currency rather they make predictions of an exchange rate to take benefit of the price movements.