Tag Archive: foreign exchange market


A swap can be defined as simultaneously purchase and sale of equivalent amount of base currency for 2 different maturities, essentially its a simultaneously borrowing and lending of 2 currencies between 2 banks for specific period express in the form of purchase and sell transactions. The interest rate differential payable or receivables by one of the parties is factored into exchange rates applied for the 2 components of transactions. Therefore the difference between Continue reading

Bank

RISK is a four letter word and have many definitions in different aspects. In the financial context it can be described as the probability of not achieving targeted financial performance.

Although all the business carry risk but the international business carry few additional risk exchange rate and interest rate.
Among the various participants in the foreign market the risk is faced by end users who initiate the transactions a commercial banks who provide committed rates to their Continue reading

 

Image used to convey the idea of currency conv...

Foreign exchange market operates where currencies are bought and sold, where as in Euro currency market currencies are deposited and borrowed.

The reason Foreign market operates on exchange rate and Euro currency market operates on interests rates.

1) The Euro currency market originated out of the need of investors Continue reading

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