Disclaimer: I CFD sono strumenti complessi e comportano un alto rischio di perdere denaro rapidamente a causa della leva finanziaria.
Dovresti considerare se comprendi come funzionano i CFD e se puoi permetterti di correre l’alto rischio di perdere il tuo denaro.
Web Trader MT5
C
Currency pair
The expression of the value of one currency in relation to another.
Currency Peg
A fixed exchange rate regime in which a nation’s currency’s value is officially pegged to the value of another, usually the U.S. dollar or the European Union’s euro, at a fixed rate. The central bank agrees to purchase and sell its own currency at that set rate and will implement foreign reserves management to keep the parity in check in light of market pressures.
The downside is clear: a peg provides exchange rate stability and inflation credibility, because the domestic currency is tied to the monetary discipline of the anchor currency, but is not allowed to have its own monetary policy. The central bank has to offer interest rates that are the same as those of the anchor currency, irrespective of the domestic interest rates.
Pegs are effective in times when the rate is related to economic fundamentals and reserves are adequate. They are susceptible when overvalued, when reserves are depleted, or when there is speculative pressure. There are numerous examples of failed peg defences in history that were only able to last long enough until reserves were exhausted, and then the surrender of the fort was inevitable.
Example: A small Gulf state pegs the US dollar at a fixed rate. If the Fed raises interest rates, the country’s central bank is forced to do the same, even when the economy demands that rates be lowered. The price of the certainty of an exchange rate is the loss of monetary independence, which is what the peg offers to an economy with dollar-denominated revenues, such as oil exporters.
Currency risk
The potential loss that can occur from changes in exchange rates when investing in foreign currencies.
Currency Spot Rate
The rate at which two currencies are exchanged and can be delivered almost immediately. In FX convention, “immediate” refers to the settlement in two business days (T+2) with most pairs, providing time to confirm and route transactions through the global payments system. The exception is USD/CAD, which settles in one business day (T+1).
All other FX rates are calculated from the spot rate. All forward rates, swap points, and cross rates are based on the spot rate. The price at any given moment is based on the sum of all factors influencing information: interest-rate differentials, inflation expectations, capital flows, political conditions, and market sentiment.
The major pair spreads in the interbank market are very tight during the active hours and only a fraction of a pip. There is always a bigger spread for retail customers, as the transaction size goes down and the cost of intermediation goes up.
Example: A corporate treasurer converting euros to dollars to pay a US supplier is quoted a spot rate of 1.0798/1.0800. The treasurer pays a two-pip spread when they buy dollars at the offer price of 1.0800. The trade is settled two business days later via payment and delivery network SWIFT, and the rates agreed upon are confirmed on both legs.
Currency Swap Line
An agreement between two Central Banks to exchange currencies between themselves, on demand, within a mutually agreed maximum amount. Swap lines allow a central bank to lend foreign currency to its counterpart to help ease the funding pressures of banks operating under its watch, especially when it comes to providing US dollars.
The global swap line network of the Federal Reserve is the most systemically important. In times of financial crisis, banks abroad that issue dollars as liabilities may be in severe dollar shortage as the markets for wholesale funding freeze. Foreign central banks turn to their Fed swap lines, which give local banks dollars in exchange for domestic currency, alleviating stress but not draining national reserves.
Swap lines are temporary and reciprocal. Importantly, both central banks agree to unwind the swap at the exchange rate agreed to at the time it is arranged, thus making the arrangement free from FX risk altogether.
Example: In times of severe global financial stress, dollar funding rates increase sharply for European banks that have dollar liabilities. The ECB uses its Federal Reserve swap lines, acquires dollars, and then lends them via its own facilities, thereby helping to calm the funding market in the eurozone without having to deal with each foreign commercial bank one by one.
Currency Trading
The buying and selling of currencies in the foreign exchange market, the biggest and most liquid market in the world, with a daily turnover of over six trillion dollars. There is no centralised exchange for FX trading, which trades continuously around the clock from Sunday evening in Asia through Friday afternoon in New York across different time zones the world over.
They span from central banks to sovereign wealth funds, from multinationals diversifying transaction risk to institutional investors handling the short-term portfolio risk of international markets and retail investors speculating on market short-term movements. They all have different motives, time horizons and instruments, but they all use the same interbank network and its downstream brokers and platforms for transactions.
Major pairs (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD) make up the lion’s share of trading volume, and when they are active, spreads often narrow to a few pips.
Example: A retail trader who speculates on EUR/USD via a leveraged CFD trades long at price 1.0800 with a stop loss at 1.0750 and a take profit at 1.0900. The target is achieved after 3 days. All the trading, from entry to management to exit, is done through a broker that matches clients and puts them into the underlying interbank market.
Inizia a fare trading con un broker leader a livello globale
Vuoi iniziare a fare trading?
Utilizziamo i cookie per capire come utilizzi il nostro sito e per offrirti la migliore esperienza possibile. Puoi saperne di più consultando la nostra Cookie Policy.
