TerraPay Forex Analyst Interview Questions and Answers

Tom, cash, and spot transactions are all types of foreign exchange transactions.

• Tom transactions involve the exchange of currencies on a future date at a fixed rate.

• Cash transactions involve the exchange of currencies on the spot, or immediately.

• Spot transactions involve the exchange of currencies on a future date at the prevailing market rate.

• Examples of spot transactions include buying euros with dollars today, but s...read more

Futures and forwards are financial contracts that allow parties to buy or sell an asset at a predetermined price and date.

• Futures are standardized contracts traded on exchanges, while forwards are customized contracts traded over-the-counter.

• Both futures and forwards involve an agreement to buy or sell an asset at a future date and price.

• They are commonly used for hedging against price fluctuations or for speculative p...read more