Spot and forward forex markets, inverted charts and regional media reports!

immediateforeign exchange marketAnd the long-term foreign exchange market is the two trading markets of the interbank market. Perhaps most foreign exchange traders have enough knowledge about the basics of finance, but foreign exchange trading knows nothing about the foreign exchange market.dooprimeThis article will explain it.

First, the spot foreign exchange market.

The spot market refers to the general, ordinary trading market. Basically, two traders agree to exchange positions at a specific exchange rate, and the trade can be settled in two trading days, i.e. the T + 2 trading mode. In most cases, unless otherwise explained, the exchange rate on the online forex margin trading platform is usually based on the rate of the interbank spot forex market. For retail traders, it is very important to know this forex knowledge. Usually, the computer screen exchange rate that traders see only means that the next trading price that the market may offer is not necessarily the price you can trade.

Second, the long-term foreign exchange market.

The main difference between spot trading and long-term trading is that the settlement date of the transaction is different. As we said earlier, the settlement of spot trading is after two trading days after the execution of the transaction. The settlement date of long-term trading is any date except two trading days after the execution of the transaction, which can be three or more trading days after the execution of the transaction. In some cases "short-term" In trading, the settlement date may be earlier than two trading days after the execution of the transaction, one trading day later, or even the execution day of the transaction.

DOOPRIME TIPS It is worth noting for traders that the long-term price is not only affected by the spot price, but also by the difference in interest rates between the two currencies in the long-term foreign exchange contract that is about to expire, namely the foreign exchange point. That is, the price of the long-term foreign exchange contract is equal to the addition or subtraction of the spot foreign exchange price. Therefore, the fluctuation of the long-term foreign exchange contract is affected by the combination of spot foreign exchange, domestic or base currency interest rates and foreign currency market trends, all three markets have their own performance. From this, it can be seen that trading long-term foreign exchange is much more complicated than trading spot foreign exchange, because traders should pay attention to the performance of three markets at the same time. Therefore, traders should pay special attention when trading.

Forex inversion charts are rare in foreign exchange trading, and traders still inevitably encounter them, so traders must understand inversion charts when learning about foreign exchange. Regional media reports report currency exchange rates in local currencies. Therefore, investors also need to understand regional media reports when trading. Next, DOOPRIME will explain:

First, invert the chart.

Inverted charts reflect a willingness to visually show the direction of currencies in FX assessments. For example, the trend chart for EUR/USD is reversed upside down, highlighting the phenomenon of "dollar strength" with a seemingly rising chart. Generally, this practice is done by news services to meet the needs of domestic audiences, so it is unlikely to appear in global media reports.

It is worth noting that traders need to constantly check the exchange rate performance in the chart and combine it with your own understanding of market fluctuations to confirm the direction and overall market conditions of the foreign exchange currency currently being tracked.

Regional media reports.

Currency exchange rate reports in regional media reports are usually based on local currencies. For example, Australian radio or television coverage of the price of yen or euro may refer to AUD/JPY and AUD/EUR respectively. These exchange rates are very different from USD/JPY and EUR. Traders will become more familiar with this as they trade more.

For example, local media reported that the Australian dollar was running at 80.28 yen or 0.7294 euros. However, when traders checked on the Forex margin trading service provider's trading platform, they found that quotes in Japanese yen and euros were most likely to cash out in dollars as follows: USD/JPY = 76.957 and EUR/USD = 1.43045.

Local media 1 AUD =) foreign exchange market

JPY 80.28 USD/JPY 76.957

EUR 0.729 4 EUR/USD 1.430 45

The above is a comparison of local media and the foreign exchange market.