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In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. For example an exchange rate of 120 Japanese Yen to the Dollar means that ¥120 is worth the same as $1. An exchange rate is also known as a foreign exchange rate, or FX rate. The Currency Market or Foreign Exchange Market is the largest market in the world. By some estimates, about $2 trillion worth of currency changes hands every day. Finance addresses the ways in which individuals, business entities and other organizations allocate and use monetary resources over time. ...
Official language Japanese Capital Tokyo Largest City Tokyo Emperor Akihito Prime Minister Junichiro Koizumi Area - Total - % water Ranked 60th 377,835 km² 0. ...
A 1,000 yen note, featuring the portrait of Natsume Soseki. ...
The United States dollar is the official currency of the United States. ...
In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. ...
An exchange rate quotation is given by stating the number of units of a price currency that can be bought in terms of a unit currency. For example, in a quotation that says the Euro-United States Dollar exchange rate is 1.2 dollars per euro, the price currency is the dollar and the unit currency is the euro. Euro (disambiguation). ...
The United States dollar is the official currency of the United States. ...
Quotes using a country's home currency as the price currency are known as direct or price quotation (from that country's perspective) ([1] (http://www.inlandrevenue.gov.uk/manuals/cfmmanual/cfm7011.htm)) and are used in the US and most other countries. a direct quotation is clear quote said by a person and generally involves a whole sentence, it is absoultly correct in the order and is specfic. ...
Quotes using a country's home currency as the unit currency are known as indirect or quality terms quotation and are used in British newspapers and are also common in Australia and New Zealand. For alternative meanings, see New Zealand (disambiguation). ...
- direct quotation: Home Currency / Foreign Currency
- indirect quotation: Foreign Currency / Home Currency
Note that, using direct quotation, if a unit currency is strengthening (i.e. appreciating, i.e. if the currency is becoming more valuable) then the exchange rate number increases. Conversely if the price currency is strengthening, the exchange rate number decreases and the unit currency is depreciating. Appreciation is a term used in accounting relating to the increase in value of an asset. ...
Depreciation is an estimate of the decrease in the value of an asset, caused by wear and tear or by obsolescence. ...
Mechanics of trading
The only real currency market is the 'deliverable' orders for individuals and businesses who need to buy and sell x currency at any rate. If you are buying a house in New Zealand, or a farm in Ireland, you will exchange your dollars regardless of the rate. This deliverable business drives the prices up and down unless rates are pegged (see below) like China's Yuan is pegged to the US dollar 8.28 YUAN to 1 USD. For alternative meanings, see New Zealand (disambiguation). ...
The Great Wall of China, stretching over 6,700 km, was erected beginning in the 3rd century BC to guard the north from raids by men on horses. ...
Yuan (TC:元 or 圓; SC:元 Pinyin yuán WG yüan) is, in Chinese language, the base unit of currency, for example, US dollar is Mei yuan (美元). ...
It is possible for investors to speculate on currency fluctuations and realize profits by parking funds in one currency, and after it appreciates in value, switching to another. In our floating point system actually every investment in the world is calculated in some domestic currency. So when you are making 20% on your investment in the USDollar by investing in the DJIA, realize that if the dollar has gone down by 40% then you have actually lost money. This will not be reflected in your bank statements of course, but it will be reflected in the purchasing power of your dollars when you go to spend them. This is tied to inflation. For example, if you turn a $10,000 investment into $15,000 this may at first seem like a successful investment, however if the US dollar is down by 50%, then it will costs twice as much for a gallon of gas. The Dow Jones Industrial Average (DJIA) is one of several stock market indices created by Wall Street Journal editor and Dow Jones & Company founder Charles Dow. ...
Like any market there is a bid and an ask (buying price and selling price). The real spread between currencies is actually 1 or 2 pips. In the EURO/USDOLLAR price of 1.4238 a pip would be the '8' at the end. So the bid/ask quote of EUR/USD might be 1.4238/1.4239 - however a bank will mark up the difference to say 1.41 / 1.43 . To most travelers exchanging 10 or 100 or even 1,000 dollars this is only a few dollars, but if you are a business exchanging millions, this can be a huge risk. To mitigate this risk a business will hedge a currency, for example buying a contract to buy 6 months worth of EURO at a set price. He will never make money on the currency, but he will never lose, and he can make a budget for selling his products. There are other meanings of the word hedge. ...
Free or pegged Main article: Exchange rate regime The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. ...
If a currency is free-floating its exchange rate against other countries can vary against other such currencies. In fact such exchange rates are likely to be changing almost constantly as quoted by financial markets and banks around the world. If the value of the currency is "pegged" its value is maintained by the government in question at a fixed rate relative to the other currency. For example, in 1983 the Hong Kong dollar was pegged to the United States dollar. The financial markets are markets which facilitate the raising of funds or the investment of assets, depending on viewpoint. ...
The essential function of a bank is to provide services related to the storing of value and the extending of credit. ...
Pegged is an adjective used to describe: a pegged currency, more formally called a fixed currency a pegged exchange rate, more formally called a fixed exchange rate This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...
The Hong Kong Dollar (ISO 4217: HKD) is the official currency of the Hong Kong Special Administrative Region (SAR) within the Peoples Republic of China. ...
The United States dollar is the official currency of the United States. ...
Nominal and real exchange rates - The nominal exchange rate is the rate at which an organisation can trade the currency of one country for the currency of another.
- The real exchange rate is the rate at which an organisation can trade goods and services of one country for those of another. For example, say the price of a good increases 10% in the UK, and there is also a 10% appreciation in the German currency against the UK currency, the price of the good remains constant for a German despite increase in price for people in the UK.
Fluctuations in exchange rates A market based exchange rate will change whenever the value of either of the two component currencies change. A currency will tend to become more valuable whenever demand for it is greater than the available supply. It will become less valuable whenever demand is less than available supply (this does not mean people no longer want money, it just means they prefer holding their wealth in some other form, possibly another currency).
Increased demand for a currency is due to either an increased transaction demand for money, or an increased speculative demand for money. The transaction demand for money is highly correlated to the country's level of business activity, gross domestic product (GDP), and employment levels. The more people there are out of work, the less the public as a whole will spend on goods and services. Central banks typically have little difficulty adjusting the available money supply to accommodate changes in the demand for money due to business transactions. A central bank is an entity responsible for monetary policy of its country (or in the case of the EU, group of member countries). ...
The speculative demand for money is much harder for a central bank to accommodate but they try to do this by adjusting interest rates. An investor may choose to buy a currency if the return (that is the interest rate) is high enough. The higher a country's interest rates, the greater the demand for that currency. An interest rate is the rental price of money. ...
In choosing what type of asset to hold, people are also concerned that the asset will retain its value in the future. Most people will not be interested in a currency if they think it will devalue. A currency will tend to lose value, relative to other currencies, if the country's level of inflation is relatively higher, if the country's level of output is expected to decline, or if a country is troubled by political uncertainty. For example, when Russian President Vladimir Putin dismissed his Government on February 24, 2004, the price of the Ruble dropped. When China announced plans for its first manned space mission synthetic futures on Chinese yuan jumped (since China's currency is officially pegged, synthetic markets have emerged that can behave as if the yuan was floating). President is a title held by many leaders of organizations, companies, universities, and countries. ...
Vladimir Vladimirovich Putin listen? (Владимир Владимирович Путин in Cyrillic lettering) (born October 7, 1952) has been the President of Russia since December 31, 1999. ...
1998 Russian Federation one rouble coin. ...
The Great Wall of China, stretching over 6,700 km, was erected beginning in the 3rd century BC to guard the north from raids by men on horses. ...
Like the stock exchange, money can be made or lost on the foreign exchange market by investors and speculators buying and selling at the right times. Currencies can be traded at spot and foreign exchange options markets. The spot market represents current exchange rates, where options are derivatives of exchange rates. In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. ...
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In finance, a derivative security is a contract that specifies the rights and obligations between the issuer of the security and the holder to receive or deliver future cash flows (or exchange of other securities or assets) based on some future event. ...
Foreign exchange markets The foreign exchange markets are usually highly liquid as the main international banks continually provide the market with both bid (buy) and ask (sell) offers. The volume of trading in the foreign exchange markets exceeds that in any other market, liquidity is extremely high. ISO 4217 is an international standard describing three letter codes to define the names of currencies established by the International Organization for Standardization or ISO. The first two letters of the code are the two letters of ISO 3166-1 alpha-2 country codes (which are similar to those used...
The United States dollar is the official currency of the United States. ...
A 1,000 yen note, featuring the portrait of Natsume Soseki. ...
Euro (disambiguation). ...
The Canadian dollar, CAD or C$, is the unit of currency of Canada. ...
The pound sterling, which strictly speaking refers to basic currency unit of sterling, now the pound, can generally refer to the currency of the United Kingdom (UK). ...
The Australian dollar, AUD or A$, is the official currency of the Commonwealth of Australia, including the Australian Antarctic Territory, Christmas Island, Cocos (Keeling) Islands, Heard Island and McDonald Islands and Norfolk Island, as well as the independent Pacific island states of Kiribati, Nauru and Tuvalu. ...
Swiss Franc (CHF) is the currency of Switzerland and Liechtenstein. ...
In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. ...
Market liquidity is a business or economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. ...
Market liquidity is a business or economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. ...
In the foreign exchange markets there is little or no 'inside information'. Rate fluctuations are usually to do with world economy or the national economies so significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time. This is in contrast to the equity market where a stock may lose value by 5% or more, and only later do the reasons for this become apparent when a newspaper reports that forecasts for that company have been revised downward, or that a key executive has resigned (this is why insider trading in stock markets can be a problem). In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. ...
A stock market is a market for the trading of publicly held company stock and associated financial instruments (including stock options, convertibles and stock index futures). ...
There are two kinds of trading that are referred to as insider trading: Trading of a security of a company (, shares or options) based on material nonpublic information. ...
Big foreign exchange trading centres are located in New York, Tokyo, London, Hong Kong, Singapore, Paris and Frankfurt amongst others and the foreign exchange market is open 24 hours per day throughout the week (closing worldwide Friday afternoon and reopening Sunday afternoon). If the European Market is closed the Asian Market or US will be open on the other and so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market to open, as is the case with most other markets. This enables traders to take positions anticipating the impact on the exchange rate of important news items. Tokyo (東京; Tōkyō, lit. ...
London — containing the City of London — is the capital of the United Kingdom and of England and a major world city. With over seven million inhabitants (Londoners) in Greater London area, it is amongst the most densely populated areas in Western Europe. ...
Hong Kong (香港; Cantonese IPA: ; Jyutping: hoeng1 gong2; Yale: heūng góng; pinyin: Xiānggǎng; Wade-Giles: Hsiang-kang) is one of the two Special Administrative Regions of the Peoples Republic of China. ...
National motto: Majulah Singapura (English: Onward, Singapore) Official languages English, Mandarin Chinese, Malay, Tamil Capital Singapore Largest city Singapore Government President Prime minister Westminster (de jure) Dominant-party (de facto) Sellapan Rama Nathan Lee Hsien Loong Area - Total - Water (%) 697. ...
Frankfurt am Main [ˈfraŋkfʊrt] is the largest city in the German state of Hesse and the fifth largest city of Germany. ...
In the foreign exchange markets there is never a 'bear' market. Currencies are traded in pairs; every trade involves the selling of one currency and the buying of another. If some currencies are going down, others must be going up. A Bear Market is a phase in the life of a stock market or other financial market in which the value of most listed shares of stock fall consistently, or values in a financial market trend downward, as reflected by a downward movement of one or more key stock indexes...
Scale Average daily international foreign exchange trading volume reached $1.9 trillion in April of 2004 according to the September 29 2004 issue of the Wall Street Journal. The BIS reported that global foreign exchange market turnover daily averages in April was $650 billion in 1998 (at constant exchange rates) and increased to $1.9 trillion in 2004 (Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity 2004 - Final Results (http://www.bis.org/publ/rpfx05.htm)). The numeral trillion refers to one of two number values, depending on the context of where and how it is being used. ...
The Wall Street Journal is an influential international daily newspaper published in New York City, New York with an average daily circulation of 1,800,607 (2002). ...
See also In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. ...
In economics, arbitrage is the practice of taking advantage of a state of imbalance between two (or possibly more) markets: a combination of matching deals are struck that exploit the imbalance, the profit being the difference between the market prices. ...
Continuous Linked Settlement (CLS) is a financial clearing system used mainly by banks to settle foreign exchange trades. ...
Financial instruments package financial capital in readily tradeable forms - they do not exist outside the context of the financial markets. ...
Gold standard - Wikipedia /**/ @import /skins/monobook/IE50Fixes. ...
International trade - an overview Absolute advantage Agreement on Trade-Related Aspects of Intellectual Property Rights APEC Autarky Balance of trade barter Bimetallism Bretton Woods system British timber trade Cash crop Comparative advantage Continental trading bloc Cost, insurance and freight Currency Customs union CAFTA CEFTA David Ricardo European Union Exchange rate...
In mathematics, hyperbolic coordinates are a useful method of locating points in Quadrant I of the Cartesian plane {(x,y) : x > 0, y > 0} = Q. Hyperbolic coordinates take values in HP = {(u,v) : u ∈ R, v > 0 }. For (x,y) in Q take u = −1/2 log(y/x) and...
An exchange rate represents the value of one currency in another. ...
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