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hello and welcome to this session on foreign exchange markets where we will cover FX settlements in this session you will learn about networks is fraught settlements continuous link systems are bi foreign exchange reserve FX in structured products FX fixes and FX ringing every foreign exchange transaction involves a transfer of funds between two nations and that means it is also involves the payment and settlement systems of two countries concerned in the transaction for this reason national payment and settlement systems play a key role in day-to-day operations of the foreign exchange market there are two types of settlements in FX market first is cross settlement in which each transaction will settle individually there will be one debit and one credit for transaction that is one payment and one receipt the second type of epic settlement is net settlement in which all transactions within the netting criteria will settle as one amount there will be one debit and one credit per currency