Response 1
Hey, I agree with you that the foreign exchange market is the biggest in the world. A domestic market is the one that takes place internally in a given country, and the trade or exchange is based on the supply as well as the demand for goods. On the other hand, the foreign exchange market allows entities to trade in different countries while making use of the currency utilized in that country. For a market to be opened all the time every day, it has become the world’s biggest exchange market with a record of approximately 4.95 trillion dollars being traded per day. In contrast to the operations of foreign exchange markets, the domestic markets only operate for eight hours, and unlike foreign, that is open every day, domestic markets are closed on weekends. Moreso, only singular currencies are used in domestic trading, thus limiting its expansion.
Response 2
Hey, agreeably, while the spot market clears in only two days after cash transactions between trades have settled, the maturity rate of the forward market is approximately six months. The spot rate can be described based on its operations as a rapid exchange rate, while the forward exchange rate is agreed on in bold deals or contracts. For instance, an electronic manufacturer from China who has a big order waiting to be shipped to the United States in a year, at a time when they expect that the dollar will be weaker, they may transact a currency forward to aim for a better exchange rate. At the same time, a trader uses a small figure to read quotes in the market, the use more prominent figures to interpret the quotations in spot currency. The spot rate is the product's price when a trade occurs on the spot, and forward momentum is of a transaction that occurs in the future at a given time.
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