Both parties decide the date and negotiations take place in the forward contract. Swap is a forward transaction that is very common. At a future date, the transaction could get reversed and both parties for a certain time frame can have the currencies exchanged. No exchange center is needed in this transaction and this contract is not standardized. In the case of future transaction, the standardized futures are traded on a particular exchange that has been created specifically for the purpose. Three months is the length of the contract at an average.

Option transaction is another kind of transaction in foreign exchange. In this transaction the rights are held by the owner himself. However he has no obligation to have the money exchanged that is denominated in one currency into a currency of another kind on a date that has been specified for a within some pre agreed upon date. Of all the foreign exchange transactions in the world, the FX option is considered the most liquid, largest and the deepest market as far as options are concerned. Trading in foreign exchange is a kind of game finally, and it may not be possible to win all the time. But with LOGIN partnering the endeavor, the thrust upwards is more!