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The Foreign exchange Options date convention is the timeframe between a currency options trade on the foreign exchange market and when the two parties will exchange the currencies to settle the option. The number of days will depend on the option agreement, the currency pair and the banking hours of the underlying currencies. The convention ...
At maturity, if the local currency is weaker than the strike rate, funds will be redeemed in the local currency. If the local currency is stronger, the principal is repaid in the alternative currency, converted at the strike rate. The distance from current exchange rate to “strike” is determined by investor risk appetite: If the client is ...
If an official exchange rate is set, its value on the black market is often lower. [2] Convertibility controls may be introduced as part of an overall monetary policy. For example, restrictions on the Argentine peso were introduced during an economic crisis in the 1990s and scrapped in 2002 during a subsequent crisis. [3]
The forward exchange rate is the rate at which a commercial bank is willing to commit to exchange one currency for another at some specified future date. [1] The forward exchange rate is a type of forward price.
A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market.The currency that is used as the reference is called the counter currency, quote currency, or currency [1] and the currency that is quoted in relation is called the base currency or transaction currency.
A currency future, also known as an FX future or a foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date; see Foreign exchange derivative.
The foreign exchange supply and demand has caused the exchange rate to change. Economic strength of a country: In general, high economic growth rates are not conducive to the local currency's performance in the foreign exchange market in the short term, but in the long run, they strongly support the strong momentum of the local currency.
[[Category:Currency conversion templates]] to the <includeonly> section at the bottom of that page. Otherwise, add <noinclude>[[Category:Currency conversion templates]]</noinclude> to the end of the template code, making sure it starts on the same line as the code's last character.