UNIT 5

money or currency of a foreign country

the market in which currencies are bought and sold and in which currency prices are determined

the rate at which one currency is exchanged for another

an exchange rate requiring delivery of the traded currency within two business days

an exchange rate at which two parties agree to exchange currencies on a specified future date

the practice of insuring against potential losses that result from adverse changes in exchange rates

buying price

selling price

the instantaneous purchase and sale of a currency in different markets for profit

the purchase or sale of a currency with the expectation that its value will change and generate a profit.