Understanding Some of the Forex Phrases and Terminologies

Bid and Ask - basically translates to the purchase price and the selling price as they each relate to the base (or domestic) currency. Cross Currency - quoting a currency without the USD being one of the currencies quoted in the equation. Currency Forward - a contractual agreement in the Forex market that secures a price on a currency that an investment entity can purchase or sell at a specified future date.

Currency Futures - a futures contract that is transferable and specifies a price wherein a specified currency can be purchased or sold at a pre-agreed upon future date. Earning the Points - describes the situation that exists when the asking price of a currency forward is less than the spot bid price. Exchange Rate - the price of the domestic currency expressed in the currency of another country. Read More Here

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