Algorithmic and high-frequency transactions

Spot market accounts for most volume

No expiration date for open positions

FX swap exchanges principal and interest

Distinguishing speculation from investing

Risk from exchange rate fluctuations

Futures prices differ slightly from spot

Popular carry pairs: AUD/JPY, NZD/JPY

Importers hedge against appreciation

Common speculative strategies explained

Carry trade works in stable conditions

Non-standardized compared to futures

No counterparty risk from clearinghouse

Currency Quotes