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The exchange rate chance dealing with the time delay between entering a contract and settling it. The greater the time differential, the greater the chances the two exchange rates change.
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Related Terms
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A forward contract is a non-standardized contract between two parties, who enter into an agreement to...
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Risk sentiment is a term used to describe how financial market participants (traders and investors) are...
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Forward guidance is a tool used by a central bank to try and influence market expectations of future levels...
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Secured Overnight Financing Rate (SOFR) is the secured overnight funding rate in USD. It is a rate...
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Currency hedging is the creation of a foreign currency position. known as a “hedge“, with the purpose of...
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