Currency
Form of money that includes paper notes and coins that are issued by a government and circulate within an economy. Currency is the ground for trading, used for exchange of goods and services. Currency Option
The right to buy or sell currency at a specified exchange rate in a specified time period. Currency Risk
The form of risk of caused by the changes in price of one currency against another.
Currency Swap
A foreign exchange operation that includes exchange of principal sum and interest in one currency for the same in another currency. Day Trading
Opening and closing the market position or positions on the same day.
Dollar Rate
The amount of a foreign currency quoted against one US Dollar.
EMS
European Monetary System. This is an agreement between European nations to link their currencies in order to stabilize the exchange rate and establish common currency called the euro European Monetary Union
The legatee to the EMS, the organization of EU countries into a cohesive economic system, having the Euro as the EU national currency. Federal Reserve
The US Central Bank.
Fixed Exchange Rate (pegged exchange rate)
An exchange rate regime that matches a currency's value to that of another currency or to other currencies, or to another measure of value, for example, gold. Floating Exchange Rate
This is a contrast to a "fixed exchange rate" regime. An exchange rate regime that sets its currency by the foreign-exchange market forces of supply and demand for that particular currency. Such rate changes freely and is defined by trading in the Forex market. Foreign Exchange (Forex)
The foreign exchange market is the place where simultaneously currencies are bought and sold. The forex market is the largest, most liquid market in the world where all world currencies estimated at $1.9 trillion are sold per day.
| 
