The largest amount of daily trading in the foreign exchange derivatives market occurs in which of the following types of securities?
A) swaps
B) FRAs
C) options
D) These three choices have equal daily trading volumes.

Question

Quizplus · Accepted Answer

Swaps are the most traded foreign exchange derivative because they are flexible and customizable, allowing traders to hedge currency risk in a variety of ways. Options and FRAs are also commonly traded, but swaps have a higher daily volume.

The Largest Amount of Daily Trading in the Foreign Exchange