Business

The most important forex market is the spot market, it also has the largest trading volume and it is the market you will be dealing with should you chose to trade forex. It is called “spot” simply because the trade is settled instantaneously.

Another part of the forex market is called forward outright. Don’t panic! You will not be dealing with it and in essence you do not even need to know about it but it is always good to understand the whole picture.

A forward outright contract locks in the price at which an entity can buy or sell a currency on a future date. The contact holder is obliged to buy or sell the specific currency at a specified price, at a specified quantity and on a specified future
date.