The price of one currency in terms of another currency.
Rate
Related Terms
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Forex stands for “foreign exchange” and refers to the buying or selling of one currency in exchange for another. While it is called “foreign” exchange, this is just a relative term. The terms “foreign” and “domestic” are relative to the person using the term. What is foreign to someone is considered domestic to another. “Currency exchange” […]
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A forward contract involves an agreement between two parties to buy or sell an underlying asset at a predetermined price on a specified future date.
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A swap is a contract between two parties who agree to exchange cash flows based on a predetermined set of terms.
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A currency forward is an agreement that locks in an exchange rate the day on which the agreement is signed for a transaction that will be completed later.
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Forward guidance is a tool used by a central bank to try and influence market expectations of future levels of interest rates. “Forward guidance” in monetary policy means providing some information...