Foreign exchange trades in the _____ market typically consummate sooner than in the ______ market.

Question

Quizplus · Accepted Answer

In the spot market, trades are settled immediately or within a two-day period, while in the forward market, trades are settled on a date in the future. Therefore, trades in the spot market consummate sooner than in the forward market. The other options (A, B, and D) are not relevant to the comparison of consummation time between spot and forward markets.

Foreign Exchange Trades in the _____ Market Typically Consummate Sooner