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OTC and exchange traded

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Published: 25th March 2017 by William Webster

Some derivatives like interest rate and currency swaps are traded directly between two parties. When they deal, they agree the amount, price, settlement date and maturity date of the transaction. Traditionally the details of these transactions are only known by the parties involved (but now regulatory reporting applies).

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Learn about the following: How the spot market works. What the spot price is. What happens when you do a deal. How the forward rate is calculated. How dealers make money. Why customers are important.