What are Spot Contracts?
Spot contracts : A foreign exchange transaction which involves settlement of currencies on the second working day after the contract date is called a spot...
Spot contracts : A foreign exchange transaction which involves settlement of currencies on the second working day after the contract date is called a spot...
Forward contracts : Foreign Exchange transaction in which the counter parties agree to a settlement beyond the spot date are called ‘forward transactions’ of ‘forward...
Forward Margins : Forward Margins can be classified as either PREMIUMS or DISCOUNTS. When the interest rate of the variable currency is more than the...
Holgate’s Principle : This principles states that : 1. Premium on base currency is always added whereas discount on base currency is always subtracted from...
Cash Contracts : Foreign exchange contracts which provide for settlement on the contract date itself are called ‘cash’ or value today’ contracts and the rate...
Spread : The spread represents the nominal difference between the ‘Ask’ and ‘Bid’ rates of a quotation whereas the % age spread helps to compare...
Vehicle Currency : The International Foreign Exchange Market is an aggregate of individual markets operating in each country. At the start of every trading day,...
Cross Currency Rates : A foreign exchange rate which provides a relationship between two non-domestic currencies is called a cross currency rate. Ex. Quotation India...
A foreign exchange rate which provides a relationship between fixed number of units of domestic currency against variable number of units of foreign currency is...
A foreign exchange rate which provides a relationship between fixed number of units of foreign currency against variable number of units of domestic currency is...