base currency, also known as the accounting currency or domestic currency. The price being"d explains the number of units of foreign currency that can be exchanged for a single unit of domestic currency. The first two alphabets of the key denote the country to which the currency belongs whereas the third alphabet of the key is the first alphabet of the currency. EUR is the domestic currency. As you can see, an indirect" is a little bit harder to understand, as you are seeing the amount of foreign currency you can get for one unit of your base currency. When buyers and sellers agree to trade atthe current exchange rate for immediate delivery, it isknown as spot transaction or cash transaction. However being exchange traded, futures contracts arestandardized contract size, maturity period etc. Charu Rastogi, ofessor. Nomenclature, any Foreign exchange market"tion always uses the abbreviation of the currency under question. Transactions can be Cash (trade date is the same as the settlement date) Spot forward15Mrs.
Q.3) Following are the"s given by a banker at Mumbai. Home, personal Transfers, personal", links, personal Menu. A lot stands for 100,000 units of the base currency, so when you are trading.01 lots of the USD/JPY currency pair, you would be trading Japanese Yen that is worth 1,000 USD.
Forex Tutorial: Reading a Forex" and Understanding the Jargon
Direct" - Investopedia
Indirect"s show the exact opposite of direct"s. Forward contracts are tailor made depending on therequirement of the contract buyers or sellers. quot;s for Foreign Trade and Leisure. Being exchange traded, futures contract can be squared off(settled) easily which may not be possible in case of forwardcontract. Broken period rates are calculated by method of interpolation. 35.50/ ask price of rupees inindirect"s Therefore, S (USD/INR)ask 1/ S (INR/USD)bidS (USD/INR)bid 1/S (INR/USD)ask11Mrs. Speculation exists whenever someone buys a foreigncurrency, not because they need to pay for an importor is investing in a foreign business, but because theyhope to sell the currency at a higher rate in the future Speculators buy and sell currencies to profit fromfluctuations.
Exchange rate quotations in forex market