Foreign exchange transactions
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Forex Forecasting Software: Analyze Currency Trends & Predict Movements
What Is Forex Forecasting Software? Forex forecasting software is an analytical toolkit used to help currency traders with foreign exchange trading analysis through technical charts and indicat
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Currency Bands: Definition, Function & Implications
What Is Currency Band? A currency band is a monetary regulation imposed by a government or central bank that specifies both a price floor and ceiling for its national currency in relation to ot
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Understanding Funding Currencies in Currency Trading
What Is a Funding Currency? The funding currency is the currency that is exchanged in a currency carry trade transaction. A funding currency typically has a low interest rate in relation to the
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Dual Currency Services: Understanding Forex Rate Speculation
What Is a Dual Currency Service? A dual currency service is a forex trading service that allows an investor to speculate on exchange rate movement between two specific currencies through a fund
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U.S. Dollar and Trade Deficits: Understanding the Relationship
During a trade deficit, the U.S. dollar has depreciated or weakened, but in many other instances, the dollar has strengthened. There are numerous variables that drive exchange rates in addition to t
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Currency Basket Explained: Definition, Uses & Forex Trading
What Is a Currency Basket? A currency basket is a set of several currencies with different weightings. It is often used to set the market value of another currency, a practice commonly known as
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LIBID vs. LIBOR: Understanding the Key Differences & Transition
LIBID vs. LIBOR: An Overview Both LIBID and LIBOR are reference rates set by banks in the London interbank market, which is a place where banks exchange currencies either directly or through el
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Currency Risk Sharing: Strategies & Benefits for Businesses
What Is Currency Risk Sharing? Currency risk sharing is a way of hedging currency risk in which the two parties of a deal or a trade agree to share in the risk from exchange rate fluctuations.
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Money Market Hedges: Protecting Your Business from Currency Risk
What Is a Money Market Hedge? A money market hedge is a technique used to lock in the value of a foreign currency transaction in a company’s domestic currency. Therefore, a money mark
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Automated Trading: A Comprehensive Guide to Automatic Execution
What Is Automatic Execution? Automatic execution is a method for placing and executing trades without the need for manual input. Automated systems and trading algorithms allow traders to take a
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Beggar-Thy-Neighbor Policies: Understanding Economic Protectionism
What Is Beggar-Thy-Neighbor? Beggar-thy-neighbor is a term used for a set of policies that a country enacts to address its economic woes that, in turn, actually worsen the economic problems of
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Crawling Pegs: Understanding Exchange Rate Flexibility
What Is a Crawling Peg? A crawling peg is a system of exchange rate adjustments in which a currency with a fixed exchange rate is allowed to fluctuate within a band of rates. The par value of t
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Inflation Hedges: Protecting Your Investments from Rising Prices
What Is an Inflation Hedge? An inflation hedge is an investment that is considered to protect the decreased purchasing power of a currency that results from the loss of its value due to rising
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Understanding Settlement Risk: Definition, Types & Mitigation
What Is Settlement Risk? Settlement risk is the possibility that one or more parties will fail to deliver on the terms of a contract at the agreed-upon time. Settlement risk is a type of counte
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Understanding Forex Outrights: A Guide to Currency Forwards
The term outrights is used in the forex (FX) market to describe a type of transaction where two parties agree to buy or sell a given amount of currency at a predetermined rate at some point in
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Cross-Currency Triangulation: A Comprehensive Guide
The major significance of cross-currency triangulations--in which foreign money exchanges do not involve the U.S. dollar--results from the fact that many currencies are not typically traded against
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WM/Reuters Benchmark Rates: Understanding FX Benchmarks
What are WM/Reuters Benchmark Rates WM/Reuters FX benchmark rates are spot and forward foreign exchange rates that are used as standard rates for portfolio valuation and performance measurement
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Sterilized Intervention: Definition, Purpose & Impact
What Is Sterilized Intervention? Sterilized intervention is the purchase or sale of foreign currency by a central bank to influence the exchange value of the domestic currency, without changing
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Triangular Arbitrage: Understanding and Exploiting Currency Discrepancies
What is Triangular Arbitrage Triangular arbitrage is the result of a discrepancy between three foreign currencies that occurs when the currencys exchange rates do not exactly match up. These op
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Forward Exchange Contracts (FECs): Definition & Uses
What Is a Forward Exchange Contract (FEC)? A forward exchange contract (FEC) is a special type of over-the-counter (OTC) foreign currency (forex) transaction entered into in order to exchange c
Foreign exchange transactions
- Forex Profit & Loss Calculation: A Beginner's Guide
- Key Attributes of Successful Forex Traders: A Comprehensive Guide
- Understanding Forex Pips: A Beginner's Guide
- Unsterilized Foreign Exchange Intervention: Definition & Impact
- Forex Trading Tax Advantages: Maximize Your Returns
- Navigating Risks: Common Pitfalls of Retail Forex Brokers
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![High-Low Index: Understanding 52-Week Highs & Lows | [Your Brand]](https://www.etffin.com/article/uploadfiles/202110/2021100815240467_S.jpeg)
High-Low Index: Understanding 52-Week Highs & Lows | [Your Brand]A high-low index is an index that tracks the new 52-week highs and new 52-week lows between stocks in a prevailing index. It is used in technical analysisTechnical Analysis - A Beginners GuideTechnica...
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Mileage Reimbursement: What's Covered & IRS Standard RatesMileage reimbursement only covers expenses done for the job. Employers who ask employees to use their own cars for the job pay a mileage reimbursement. The reason is simple. Employers can bet...
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Blockchain in Banking: Overcoming Key Obstacles to AdoptionBlockchain is touted as the next step in the digital revolution, a technology that will change every industry from music to waste. When it comes to money, it go...
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Understanding Economic Cycles: A Financial Literacy Guide(Since April is Financial Literacy Month, a number of articles will be devoted to more educational topics. This is Part I in a four-part series about how understanding economic cycles could infor...