Forex Articles

Counties facing Forex volatility and economic instability may use a crawling peg exchange rate to shield their economy from negative fallout, but what is a crawling peg? We will explain the two types of a crawling peg exchange rate and discuss its advantages and disadvantages.

The Committee on Payment and Settlement Systems (CPSS) was the former name of the Committee on Payments and Market Infrastructure (CPMI). Central banks from the G-10 formed the CPSS. Today, it consists of twenty-five members, with tri-annual meetings. Its primary function is setting global payment, clearing, and settlement standards. It aims to improve safety, increase efficiency, enhance transparency, and contribute to financial stability. The CPMI also provides a platform for central banks to collaborate, focused on monetary policy, financial oversight, and market operations.

The Forex market is the most liquid financial market globally, and some estimates have it breaching $10 trillion in daily turnover this decade from just shy of $7 trillion now. Given the size and liquidity of the Forex market, traders can use a wide range of strategies unsuitable in other markets. Covered interest arbitrage is among them, but what is covered interest arbitrage? We will explain covered interest arbitrage theory, discuss the importance of covered interest arbitrage parity, and outline why this strategy belongs to exotic ones, allowing you to determine if it is suitable for your portfolio.

Investors considering fixed-income investments to diversify portfolios or create guaranteed passive cash flow will hear terms like coupon payment, coupon rate, and nominal yield, but what do they mean? We will answer the coupon definition finance question, give you the coupon payment formula, and provide a coupon payment example.

Fixed income securities, or bonds, are considered safer investments but yield lower returns. They are common among risk-averse investors, well-diversified portfolios, pension funds, and passive income generation portfolios. When investors evaluate bonds to add to their portfolios, they must consider three defining aspects: the bond issuer, the yield to maturity, and the coupon rate.

The counterparty definition applies to every transaction in finance. You may have heard the term before, but what does it mean, and why does it matter?

In this article we will provide the country risk definition and explain why a country risk assessment is necessary to lower avoidable losses.

Every financial transaction requires a buyer & a seller, which become the counterparty to each other. In centralized markets, there is the clearinghouse.

We will explain the cost-of-living index definition, cover the cost-of-living index formula, and briefly discuss why the cost-of-living index in statistics.

The cost of carry definition, or carrying charge, is the cost of holding a position and It impacts profitability.

A central bank or monetary authority is an organization that is in charge of a state's or structured monetary union's monetary system, policy, & commercial financial system.

The Chicago Board Options Exchange (CBOE) is the premier options exchange in the United States, with headquarters at 433 West Van Buren Street in Chicago.

CHAPS (Clearing House Automated Payment System) is a high-value, bank-to-bank system of payment that offers irreversible, no-risk settlement, & quick transactions.

A certificate of deposit (CD) is a type of time deposit given by banks that pays a higher interest rate in return for the consumer consenting to keep a lump-sum deposit unattended for a set amount of time.

Carried interest is a performance fee paid to a manager or partner for making an investment happen. It is the share of profits from the proceeds of an investment