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Foreign Exchange or Forex as it is often abbreviated as, is all about exchanging one currency for another. At the advent of globalisation, this seems to be one of the most popular things to come from the mouths of a commoner boarding a flight to governments of nations trading their commodities and services across countries. The places where these conversions of currencies are carried out are known as foreign exchange markets. To provide you help for a pragmatic understanding of these terms relating to foreign exchange transactions, myhomeworkhelp.com has taken steps to facilitate Foreign Exchange Transactions Assignment Help.
Know more about Foreign Exchange Transactions
A foreign exchange transaction is an agreement between parties (generally two) in which a currency is either sold or is bought at a predecided price. The actual settlement of the transaction can take place at the current date or at a future date. Two important dates imperative to our present study would be are trade date and value date. The trade date is the date on which the agreement has been entered into. The value date is the date on which actual delivery of currencies upon making the payment take place.
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