A SWAP IS A TRANSACTION IN WHICH A SUM IS INVOLVED, THAT IS, A SALE OR PURCHASE OF FORWARD FOREIGN EXCHANGE AT THE SAME TIME AS a PURCHASE OR SALE OF SPOT FOREIGN EXCHANGE.
This is usually done by a bank to cover the risk of a foreign currency it has bought from or sold to a customer.
Sometimes the adjustment business consists of two transactions, called forward to forward adjustment business.
Foreign currency futures trading is a foreign exchange trading business in which foreign currency futures contracts are bought and sold in a fixed place.
Similar TO other general commodity futures trading, foreign currency futures trading is the trading activity of buying and selling a fixed amount of foreign currency at a certain date in the future at an agreed price.
