Inside the Nominal Effective Exchange Rate (NEER).

The Nominal Effective Exchange Rate (NEER) is a weighted average of a country’s currency relative to an index or basket of other major currencies. The NEER is used to measure a country’s currency relative to its trading partners. The weights are based on the importance of the country’s trading partners. The NEER is used as … Read more

Forex Hedge.

A forex hedge is a transaction implemented by a forex trader to protect an existing or anticipated position from an unwanted move in exchange rates. Hedges are typically used to offset the risk of adverse price movements in a currency pair. There are two main types of forex hedges: 1. A long hedge is used … Read more

How the Current Rate Method Works.

The current rate method is a way for forex traders to calculate the current exchange rate between two currencies. This method is used by banks and other financial institutions to quote exchange rates. To calculate the current rate, the trader looks at the most recent trade price for the currency pair. This price is then … Read more

GBP Definition.

GBP stands for Great Britain Pound. The GBP is the official currency of the United Kingdom, and is also used in a number of other countries, including the Isle of Man, the Channel Islands, and the Falkland Islands. The GBP is a major currency, and is one of the most traded currencies in the world. … Read more

What Is a Forex Trading Bot or Robot?

A forex trading bot is a software program that automatically enters and exits trades on the foreign exchange market. Bots are designed to take the emotion out of trading decisions by following a strict set of rules programmed into their code. Most forex bots are designed to trade on the major currency pairs, such as … Read more

Foreign Currency Fixed Deposit (FCFD).

A foreign currency fixed deposit is a type of bank deposit made in a foreign currency. It is a popular choice for investors looking to diversify their portfolios and hedge against currency risk. FCFDs offer a higher interest rate than regular deposits denominated in the domestic currency, but they are also subject to currency risk. … Read more

Cambist Definition.

A cambist is a professional forex trader. The term is derived from the French word ‘cambiste’, which means ‘exchange dealer’. A cambist is responsible for the management and execution of foreign exchange transactions. They work in banks, financial institutions and currency trading firms. A cambist needs to have a good understanding of the foreign exchange … Read more

What Is the Irish Pound (IEP)?

The Irish Pound (IEP) was the currency of Ireland until 2002. The Irish pound was introduced in Ireland in 1928, replacing the earlier Irish Free State pound. The pound was subdivided into 20 shillings (symbol: s; from Old English: scilling, sometimes abbreviated to “scill”; plural: shillings), and each shilling was subdivided into 12 pence (plural: … Read more

Norwegian Krone (NOK) Definition.

The Norwegian Krone (NOK) is the official currency of Norway. The Norwegian Krone is divided into 100 smaller units called “ore”. The ISO code for the Norwegian Krone is NOK. One Norwegian Krone is divided into 100 ore and is often presented with the symbol kr. The Norwegian Krone was introduced in 1875 and was … Read more