Sucden
Travel Money
Sucden (UK) Travel Money
The
Foreign Exchange Market provides the mechanism for determining
the rate of exchange of one currency against another and for
completing foreign exchange transactions. A foreign exchange
transaction is an agreement between a buyer and a seller that
a given amount of one currency is to be delivered at a specified
rate for some other currency on a specified date.
It
is the largest and most liquid of all financial markets and
it is a truly global marketplace with financial institutions,
importers, exporters, investors, hedging operations and speculators
contributing to a daily turnover in excess of US$1 trillion.
Notwithstanding the absence of a centralised exchange foreign
exchange rates are available 24-hours a day from a wide variety
of banks and other market making institutions. The large number
of participants in the market ensures liquidity and tight
market spreads.
Transactions
in the market are totally flexible as to maturity date, size
and the currencies involved. Most trades are for "spot"
value with settlement taking place 2 working dates after the
transaction has been agreed. Deals with maturity dates in
excess of spot are known as "forward" deals and
the adjustment between the spot and forward rate reflects
the interest rate cost differential between the two currencies
over the forward period.
For
further information on Sucden (UK) Travel Money visit the
Sucden (UK) Website.
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