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an exchange rate is how much country's currency is worth in term of anothers.
The TED(Tressury Exchange Derivative) sperad is good method though some have gone under playing this including some Nobel laurettes. The idea is you look at the short term or long term rates and the exchange rate movements and invest in short term or long term t bills in foreign currency when their exchange rate is moving up and convert back after the exchange rate has gone up. Such opportunities has to be figured out thoroughly before getting into it.
Foreign exchange market is a market where foreign exchange currency problems are resolved in international trade. Where as Money market is for the lending and borrowing of short term loans.
Foreign Exchange
exchange rate
I think 'forex exchange' comes from the term 'foreign currency exchange'. You can exchange your money from the currency of the country you are based in to a currency from another country.
Calculations to determine foreign exchange are traditionally done to four decimals. A pip is 0.0001 of a cent and is the smallest unit of price in foreign exchange trading.
Stefano Micossi has written: 'A case study on the effectiveness of foreign exchange market intervention' 'Short-term interest rate linkages between the United States and Europe'
Foreign Exchange Market
I believe you're looking for the term "exchange rate."
The international term for currency trading is called foreign exchange. Foreign exchange rates are updated around the clock based on currency values that fluctuate all the time based on stock markets and other economic indicators. When travelling abroad, it's important to visit a currency exchange booth, frequently located in airports, in order to receive local currency for cash transactions.
Appreciation or depreciation of the domestic currency depends on the supply of foreign exchange reserves, liquidity conditions in the economy as determined by money supply, central bank's policy intentions and differences in the interest yield on dated securities of the concerned economies. The present research tests validity of this hypothesis in association with the exchange rate between the Indian rupee and the US dollar. In particular, an attempt is made to investigate the impact of bank rate policy of the Reserve Bank of India (RBI) and interest yield differentials between the India and the US securities. Impact of broad money supply and foreign exchange reserves is also analyzed. A monthly time series from April 1996 to June 2007 is used for the purpose. It is observed that the monetary policy intentions depicted by the bank rate of the RBI, the short-term and long-term domestic interest differentials and interest yield differentials, and the rate of change of foreign exchange reserves have a significant impact on the monthly average of the exchange rate between Indian rupee and the US dollar and quite in line with the economic theory.