Cross-Exchange Rate
Depreciate
Forward Premium/Discount
Over-the-Counter (OTC) Markets
Exchange-traded Fund (ETF)
Foreign Exchange (FX) Market
Triangular Arbitrage
Spot Rate
Swap Transaction
Offer Price
Forward Market
Bid Price
Appreciate
in the context of a domestic currency, an increase (a decrease) in a foreign exchange rate relative to another currency when stated in terms of the domestic (foreign) currency.
in the context of a domestic currency, a decrease (an increase) in a foreign exchange rate relative to another currency when stated in terms of domestic (foreign) currency.
the price at which a dealer will sell a financial asset.
the amount over (under) the spot exchange rate for a forward rate that is often expressed as an annualized percent deviation from the spot rate.
trading market in which there is no central marketplace; instead, buyers and sellers are linked via a network of telephones, telex machines, computers, and automated dealing systems.
a market for trading foreign exchange contracts initiated today but to be settled at a future date.
the price at which dealers will buy a financial asset.
the portfolios of securities that are traded on the stock exchanges like individual securities.
price at which foreign exchange can be sold or purchased for immediate (within two business days) delivery.
the simultaneous spot sale (purchase) of an asset against a forward purchase (sale) of an approximately equal amount of the asset.
encompass the conversion of purchasing power from one currency into another, bank deposits of foreign currencies, and trading in foreign currency spot, forward, futures, swap, and options contracts.
the process of trading U.S. dollars for a second currency and subsequently trading this for a third currency. This third currency is then traded for U.S. dollars. The purpose of such trading is to earn arbitrage profit via trading from the second currency to the third.
an exchange rate between a currency pair where neither currency is the U.S. dollar.
