Exchange rate: Difference between revisions

Revision as of 15:11, 16 December 2011

In finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. For example an exchange rate of 102 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that JPY 102 is worth the same as USD 1. The foreign exchange market is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day. Trading Forex is an lucrative way to make money.

The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.

Quotations

An exchange rate quotation is given by stating the number of units of "term currency" or "price currency" that can be bought in terms of 1 unit currency (also called base currency). For example, in a quotation that says the EURUSD exchange rate is 1.4320 (1.4320 USD per EUR), the term currency is USD and the base currency is EUR.

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Revision as of 14:14, 8 October 2008 (view source) Guaka (talk \| contribs) (New page: In finance, the '''exchange rates''' (also known as the '''foreign-exchange rate''', '''forex rate''' or '''FX rate''') between two currencies specifies how much one curre...)		Revision as of 15:11, 16 December 2011 (view source) Kyle101 (talk \| contribs) No edit summary Newer edit →
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	In [[finance]], the '''exchange rates''' (also known as the '''foreign-exchange rate''', '''forex rate''' or '''FX rate''') between two [[currency\|currencies]] specifies how much one currency is worth in terms of the other. For example an exchange rate of 102 [[yen\|Japanese yen]] (JPY, ¥) to the [[United States dollar]] (USD, $) means that JPY 102 is worth the same as USD 1. The [[foreign exchange market]] is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day.		In [[finance]], the '''exchange rates''' (also known as the '''foreign-exchange rate''', '''forex rate''' or '''FX rate''') between two [[currency\|currencies]] specifies how much one currency is worth in terms of the other. For example an exchange rate of 102 [[yen\|Japanese yen]] (JPY, ¥) to the [[United States dollar]] (USD, $) means that JPY 102 is worth the same as USD 1. The [[foreign exchange market]] is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day. [http://www.golearnforex.net/ Trading Forex] is an lucrative way to make money.

	The '''spot exchange rate''' refers to the current exchange rate. The '''forward exchange rate''' refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.		The '''spot exchange rate''' refers to the current exchange rate. The '''forward exchange rate''' refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.