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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.
The first currency (XXX) is the base currency that is quoted relative to the second currency (YYY), called the counter currency (or quote currency). For instance, the quotation EURUSD (EUR/USD) 1.5465 is the price of the Euro expressed in US dollars, meaning 1 euro = 1.5465 dollars. The market convention is to quote most exchange rates against ...
Countertrade also occurs when countries lack sufficient hard currency, or when other types of market trade are impossible.. In 2000, India and Iraq agreed on an "oil for wheat and rice" barter deal, subject to United Nations approval under Article 50 of the UN Persian Gulf War sanctions, that would facilitate 300,000 barrels of oil delivered daily to India at a price of $6.85 a barrel while ...
The value of fiat currency is supported by the issuing government and its economic strength. Gas fee The cost required to perform a transaction or execute a smart contract on the Ethereum network.
Spot price – the price of the asset at the time of the trade. Forward price – the price of the asset for delivery at a future time. Notional – the amount of each currency that the option allows the investor to sell or buy. Ratio of notionals – the strike, not the current spot or forward. Numéraire – the currency in which an asset is ...
r d = simple interest rate of the term currency; r f = simple interest rate of the base currency; T = tenor (calculated according to the appropriate day count convention) The forward points or swap points are quoted as the difference between forward and spot, F - S, and is expressed as the following:
The key currency generally refers to a world currency, which is widely used for pricing, settlement, reserve currency, freely convertible, and internationally accepted currency. Cross rate: After the basic exchange rate is worked out, the exchange rate of the local currency against other foreign currencies can be calculated through the basic ...
A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spot exchange rate.