The settlement must be made with more than 2 business days term after the date of
hiring. Within this type can be distinguished:
• Direct operations or “outright” purchase or sale of foreign currencies for delivery at a date
future. Used by companies with foreign trade as a form of
• Operations “swaps” buy or simply selling currency futures and simultaneous sale or
purchase of foreign currency in cash. It is used by banks and savings banks as a means of financing
or placement of the deficit or surplus cash in foreign currency.
• forward-forward operations: buying or selling currency futures and simultaneously selling
or purchase of foreign currency to a different period. These operations constitute a taking and
placing funds in currencies with deferred until the deadline
To summarize in the spot changes buyers and sellers each entity inluyen two factors: the fixing (usually set fairly between entities but there are differences) and another band (this is brutally makes the difference)
go, totally complete answer, and I q rereading in a quiet moment.
In connection with the fixing and spot, or perhaps rather because it is considered forward transactions or ocntado in my bank told me this and I can not understand, if someone has an explanation would appreciate it gave me q.
I say q to make a partial repayment of a multicurrency loan is advisable to order repayment in Swiss francs eg He would apply the same rate q in a regular monthly fee, two days before amortization in euros in this case the exchange rate to be applied is q call ‘spot exchange’ that will not match the change in the quota nor has that be reflected in the changes of the day as it is purchasing currency directly and is made to change the instant the transaction- is done because, according to them, the change would favor me less if the order was given in euros.
And I do not see why I’ll be interested more or less simply by giving the order in euros or francs or yen, will depend on the difference in euro / currency exchange when the q order two days before the quota monthly, do something escapes me ?.