Hot potato trading is the quick passing of currency inventory imbalances (due to an exogenous shift in the demand and supply of currencies) around the inter-dealer market.
Hot Potato Trading
Related Terms
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Forex stands for “foreign exchange” and refers to the buying or selling of one currency in exchange for another. While it is called “foreign” exchange, this is just a relative term. The terms...
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The Business Inventories report measures the total amount of inventories held by manufacturers, wholesalers, and retailers in the country.
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Forex trading is the simultaneous buying of one currency and selling another. When you trade in the forex market, you buy or sell in currency pairs. As the value of one currency rises or falls...
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Over-the-counter trading, or OTC trading, refers to a trade that is not made on a formal exchange. Instead, most OTC trades will be between two parties, and are often handled via a dealer...
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The bid/ask spread is the difference between the bid and ask price. The “ask” price is also known as the “offer” price. It’s the difference between the buyer’s and seller’s prices. The “bid...