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What is the difference between foreign exchange and currency futures?
Wiki User
∙ 13y ago
Foreign Exchange (Forex) is everything that has to do with converting one currency to the other. You often see foreign exchange market, foreign exchange transaction, foreign exchange rate.
Foreign exchange rate is simply a rate at which you can convert one currency to the other, a price of one currency expressed in the other currency.
For example if you see EUR/USD 1.30, this means you can buy one Euro for 1.30 US Dollars. 1.30 is the eur/usd forex rate.
Futures are financial contracts that set the price for delivery in the future. There are futures on almost all asset classes, including currency. An example of currency future would be a contract to sell 1 Million EUR against USD for a price (rate) of 1.30 USD per EUR in 3 months.
Wiki User
∙ 13y ago
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Explain the difference between indirect and direct exchange rates?
The difference between indirect and direct exchange rates is that an indirect exchange rate is the number of foreign currency units that may be obtained for one local currency unit and a direct exchange rate is the number of local currency units needed to acquire one foreign currency unit. The direct exchange rate has the local currency units in the numerator (the U.S. dollar for the direct exchange rate for the U.S. dollar).
What is the difference between a floating and a pegged exchange rate?
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
What is the currency and foreign exchange code of Bolivia?
The currency in Bolivia is Boliviano and the foreign exchange code of the currency is BOB.
What are foreign exchange rates?
Foreign exchange rates are currency exchange value of other countries.
How does a country balance of payments affect the value of its currency?
can cause fluctuations in the exchange rate between its currency and foreign currencies.
What do you mean by foreign exchange?
Foreign Exchange is Exchange between two currency.
Explain the difference between indirect and direct exchange rates?
The difference between indirect and direct exchange rates is that an indirect exchange rate is the number of foreign currency units that may be obtained for one local currency unit and a direct exchange rate is the number of local currency units needed to acquire one foreign currency unit. The direct exchange rate has the local currency units in the numerator (the U.S. dollar for the direct exchange rate for the U.S. dollar).
What is the difference between the stock market and the currency exchange market?
Ownership in companies is traded in the Stock Market while ownership of foreign money is traded in the currency exchange market.
What is difference between money market and foreign exchange market?
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.
What is the difference between a floating and a pegged exchange rate?
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
Difference between Spot Exchange Rate and Exchange rate?
An exchange rate, which is also called the foreign-foreign exchange rate, is the rate that currency will be exchanged for another currency and may have a forward contract. The spot exchange rate is the current exchange rate today with immediate delivery and it is also called benchmark rates and outright rates.
Can you still exchange foreign currency that is uncirculated?
we can exchange foreign currency of leats of banks
Can you still exchange a foreign currency that is uncirculated?
we can exchange foreign currency of leats of banks
What is the currency and foreign exchange code of Bolivia?
The currency in Bolivia is Boliviano and the foreign exchange code of the currency is BOB.
What is the significance and difference in foreign currency exchange rates?
The differences in foreign currency exchange rates is also called a spread. The size of the spread determined by the liquidity of the pair, the amount of buyers and sellers.
What factors create a foreign exchange gain on a foreign currency transaction?
An appreciation in a foreign currency creates a foreign exchange gain when the foreign currency is to be received. A decrease in the value of foreign currency creates a foreign exchange gain when the foreign currency is to be paid. (Hoyle, Schaefer, Doupnik, 2009, pp. 328)
What is a foreign exchange?
Foreign exchange or Forex refer to exchanging one country's currency by another country's currency.
