Foreign Exchange Market. Chapter 13. Foreign Exchange Market. Foreign exchange trading refers to trading of one country’s money for that of another country. The need for such trade arises because of: Tourism The buying and selling of goods internationally
Most currencies are traded.
Are written for any amount of currency
Contracts are typically 30, 90 and 180 days long and maturing everyday of the year.
Only a few currencies are traded (€, £, ¥, A$, Can$, SF, Ps)
Are written for a fixed amount of currency.
All contracts have specific maturity date.Future vs forward contracts