And forward foreign exchange transactions

And forward foreign exchange transactions
Methods to hedge against exchange rate in the most preferred method is forward. Forward exchange rate system between the customer and the specific amount of foreign money in the bank, at a date certain in the agreement for the purchase or sale.

The main objective is profit, but profit in the Forex market to replicate the replication demanded from any other need to be protected. One of the values ​​of real rates of return while increasing profits to be taken into consideration. Interest rate minus the expected rate of return on real interest rates can be found noinal. Return on the liquidity of high-sheen floating floor. Country authorities increase interest rates for capital inflows. High interest rates and increases the liquidity of the interest is high field shifted charm. In this way, in national currency strengthened. Unlike the money out of the country consists of movements will be reduced because the real getri. There are differences in interest rates in the Forex market traders in the foreground. After 2 days when the spot market swaps, forward transactions can be done between 3 days to 5 years. Foreward to these markets is called foreign exchange markets.