The foreign exchange market is a market in which foreign exchange transactions take place. The Primary...

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Finance

The foreign exchange market is a market in which foreignexchange transactions take place. The Primary function of a foreignexchange market is the transfer of purchasing power from onecountry to another and from one currency to another. Theinternational clearing function performed by foreign exchangemarkets plays a very important role in facilitating internationaltrade and capital movement. Certain important types of transactionsconducted in the foreign exchange market occurs via the Spot andForward markets.
Describe the spot market
Describe the forward market

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In simple words In a spot market a product is transferred or exchanged for a price immediately but the official transfer formalities takes some time In a forward market price is decided now but actual transfer takes place later a Spot Market Here trades are done immediately but official transfer of funds take some time The current price of a financial instrument is called the spot price It is the price at which an instrument can be sold or bought at immediately Lets say an online See Answer

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