Operations on the currency market
The forex currency market has the following operations:
1. SPOT operations – They represent the selling-purchasing of currency directly or in maximum 48 hours. The moment of rate formation coincides with the moment the transaction is closed.
2. Deadline operations – the delivering of goods is made after a certain deadline towards the moment of contract signing.
3. HEADGING type contracts – the buyer undertakes to pay a certain sum in currency at a certain deadline and at the same time lends somewhere else the same currency sum.
4. SWAP type operations – operations through which are closed at the same time a clear transaction and another one at a deadline in a different currency. These operations are of a special importance on the international market because of the fact that they presume a important movement of cash.
5. Other types of currency operations
- collecting and payments in currency as a result of the commercial transaction regarding the import/export of goods and services.
- Currency transactions
- Loans and credits in different currencies
- Currency exchange for non-commercial operations
- Headging, Swap operations
