FOREX Flashcards
This is a virtual currency and example of which are bitcoin, degocoin and many others.
Cryptocurrency
Last November 29, 2021, the exchange rate between USD/PHP was P50.34. What does this mean?
You need P50.34 to exchange to a dollar
USD/PHP Reference rate: P50.50. You called you bank and gave you this exchange rate: 50.30 and 50.70, which of these two is the BID?
50.30
If you are given this exchange rate USD/CAD = 1.28, which currency is strong?
USD
This is the market where the currency is traded.
Foreign exchange market or Forex Market
Foreign exchange market or Forex Market
Exchange Rate
This refers to the collection of inves, ments tools such as stocks, bonds, ….. Cash and so on.
Portfolio
The rate of a foreign currency is determined by the law of supply and demand.
Float Rate
A PIP is equivalent to:
1/100th %
It is the conversion of one’s country’s currency into another.
Foreign Exchange
It is the trading of one currency for another.
Foreign exchange
Medium of exchange for goods and services.
Currency
A virtual currency that has no physical existence or government backing and are traded and stored in electronic form.
Bitcoin
Asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.
Investment
Results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital.
Leverage
This refers to the amount of debt a firm uses to finance assets.
Leverage
It is the largest, most liquid market in the world, with trillions of dollars changing hands everyday.
Foreign exchange market
Has many available buyers and sellers.
Liquid market
The opposite of liquid market is called.
Thin market or Illiquid market
Controlling a country’s currency rate by tying it to another country’s currency or steering an asset’s prior to option expiration.
Pegging
It is also a strategy deployed by buyers and sellers of call and put
Pegging
Number of units of a foreign currency required to obtain one unit of domestic currency.
Exchange rate
The reciprocal of this rate expresses the number of units in domestic currency required to obtain one unit of foreign currency.
Exchange rate
Risk management strategy employed to offset losses in investments by taking an opposite position in a related asset.
Hedging
A regime where the currency price of a nation is set by the FOREX market based r supply and demand relative to other currencies.
Floating Rate
