It is a transaction involving the exchange of two different currencies at an agreed exchange rate and settlement date.
Types of Forex transactions:
Today (TOD), the transaction date and settlement date are on the same day.
Tomorrow (TOM), the settlement date is 1 (one) working day after the transaction date.
SPOT, the settlement date is 2 (two) working days after the transaction date.
FORWARD, the settlement date is more than 2 (two) working days after the transaction date.
SWAP, a combination of two transactions, buy and sell or sell and buy.
