As in the spot market, the price is set on the transaction date but money is exchanged on the maturity date. Spot transactions for most currencies are finalized in two business days. The major exception is the U.S. dollar versus the Canadian dollar, which settles on the next business https://fsclc.eu/ day.

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  • This is usually done on volume; the higher the volume, the closer you get to the interbank rate.

That’s why it’s important to learn the characteristics of the forex market and develop sustainable, long-term strategies instead. Day trading is well-suited to retail forex traders that have the time and inclination to closely monitor their open positions in the market over a single day. Risk/reward signifies how much capital is being risked to attain a certain profit.

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