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Currency

Price

The purchase or sale rate of the underlying currency is known as the strike price. This is the agreed upon price at which the currency can be bought or sold. It serves as a reference point for determining the profitability of a currency option. Understanding the concept of strike price is crucial in navigating the world of finance and making informed decisions in currency trading.
Related terms
Buy on margin
In financial terms, margin buying is the act of purchasing a currency pair by paying a portion of the total value upfront. This term specifically refers to the amount of mon...
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Closing a position
Foreign exchange transactions involve buying and selling currency. When a position is closed, it means that the trade has been completed and the currency has been exchanged....
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Bretton Woods Agreement
In 1944, the founding members of the United Nations signed a treaty that established fixed exchange rates for major currencies. This gave central banks the authority to inte...
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Bank Rate
This is known as the discount rate or the base rate. In the realm of finance, the discount rate or base rate refers to the interest rate at which a central bank offers loans ...
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Currency Risk
This is commonly referred to as exchange rate risk. Foreign exchange rates are constantly changing, which can lead to potential losses for investors. This is known as exchan...
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Base Currency
In the realm of finance, we often come across the term "base currency" when discussing currency pairs. In simple terms, the base currency is the first currency listed in a p...
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