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The Forex Edge by James Dicks

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CHAPTER 9THE FARM BILL

REGULATION IN THE FOREX MARKET

As mentioned in earlier chapters, the forex market is known as a spot market. You may be familiar with similar markets such as the spot gold or oil market. What differentiates a spot market is the fact that this is a cash market that is normally traded for immediate delivery of the commodity. However, when it comes to the retail forex spot market, no delivery of currencies is taking place, only the opening and closing of positions that are usually placed using a margin account—in other words, purchased or sold using leverage.

In the case of the forex, there is nothing to deliver. Therefore it did not qualify as a commodity. In fact, it simply fell between the regulatory cracks, so that no ...

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