Currency Trading Information Channel
Types of Foreign Currency Hedging Vehicles
The following are some of the most common types of foreign currency hedging vehicles used in today's markets as a foreign currency hedge. While retail forex traders typically use foreign currency options as a hedging vehicle. Banks and commercials are more likely to use options, swaps, swaptions and other more complex derivatives to meet their specific hedging needs.
Spot Contracts - A foreign currency contract to buy or sell at the current foreign currency rate, requiring settlement within two days.
As a foreign currency hedging vehicle, due to the short-term settlement date, spot contracts are not appropriate for many foreign currency hedging and trading strategies. Foreign currency spot contracts are more commonly used in combination with other types of foreign currency hedging vehicles when implementing a foreign currency hedging strategy.
For retail investors, in particular, the spot contract and its associated risk are often the underlying reason that a foreign currency hedge must be placed. The spot contract is more often a part of the reason to hedge foreign currency risk exposure rather than the foreign currency hedging solution.
Forward Contracts - A foreign currency contract to buy or sell a foreign currency at a fixed rate for delivery on a specified future date or period.
Foreign currency forward contracts are used as a foreign currency hedge when an investor has an obligation to either make or take a foreign currency payment at some point in the future. If the date of the foreign currency payment and the last trading date of the foreign currency forwards contract are matched up, the investor has in effect "locked in" the exchange rate payment amount.
* Important: Please note that forwards contracts are different than futures contracts. Foreign currency futures contracts have standard contract sizes, time periods, settlement procedures and are traded on regulated exchanges throughout the world. Foreign currency forwards contracts may have different contract sizes, time periods and settlement procedures than futures contracts. Foreign currency forwards contracts are considered over-the-counter (OTC) due to the fact that there is no centralized trading location and transactions are conducted directly between parties via telephone and online trading platforms at thousands of locations worldwide.
Foreign Currency Options - A financial foreign currency contract giving the buyer the right, but not the obligation, to purchase or sell a specific foreign currency contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign currency option buyer pays to the foreign currency option seller for the foreign currency option contract rights is called the option "premium."
A foreign currency option can be used as a foreign currency hedge for an open position in the foreign currency spot market. Foreign currency options can also be used in combination with other foreign currency spot and options contracts to create more complex foreign currency hedging strategies. There are many different foreign currency option strategies available to both commercial and retail investors.
Interest Rate Options - A financial interest rate contract giving the buyer the right, but not the obligation, to purchase or sell a specific interest rate contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the interest rate option buyer pays to the interest rate option seller for the foreign currency option contract rights is called the option "premium." Interest rate option contracts are more often used by interest rate speculators, commercials and banks rather than by retail forex traders as a foreign currency hedging vehicle.
Foreign Currency Swaps - A financial foreign currency contract whereby the buyer and seller exchange equal initial principal amounts of two different currencies at the spot rate. The buyer and seller exchange fixed or floating rate interest payments in their respective swapped currencies over the term of the contract. At maturity, the principal amount is effectively re-swapped at a predetermined exchange rate so that the parties end up with their original currencies. Foreign currency swaps are more often used by commercials as a foreign currency hedging vehicle rather than by retail forex traders.
Interest Rate Swaps - A financial interest rate contracts whereby the buyer and seller swap interest rate exposure over the term of the contract. The most common swap contract is the fixed-to-float swap whereby the swap buyer receives a floating rate from the swap seller, and the swap seller receives a fixed rate from the swap buyer. Other types of swap include fixed-to-fixed and float-to-float. Interest rate swaps are more often utilized by commercials to re-allocate interest rate risk exposure.
John Nobile - Senior Account Executive
MORE RESOURCES updated Wed. May / 22 / 2019
Short Aussie, Long Yen Is the Hot New Currency Bet for Trade War Bloomberg
Short Australia's risk-sensitive currency against the haven yen. That is emerging as one popular currency trade as investors look to profit from the U.S.-China ...
Europe hits 5 banks with $1.2 billion fine over currency trading cartel CNN
London (CNN Business) Five global banks have been slapped with a €1.07 billion ($1.2 billion) fine in Europe for running cartels that coordinated currency ...
Future Returns: The Risk and Reward of Foreign Currency Exchange Markets Barron's
While most advisors recommend leaving the foreign currency exchange market to the pros, individual investors are increasingly entering the market as ...
Venezuela loosens currency exchange controls to allow forex trading Reuters
CARACAS (Reuters) - Venezuela will allow local banks to open foreign currency trading platforms as part of a loosening of the OPEC nation's exchange controls ...
Using the COT Report in Forex Trading DailyFX
Learn how to trade forex using the Commitment of Traders Report. View top trading strategies and how to do COT report analysis.
A Guide to Currency Trading for Complete Beginners • Benzinga Benzinga
Learn more about forex trading, also known as currency trading. Discover its definition, examples, how it works and how to get started trading today.
Asian markets mixed amid geopolitical developments CNBC
Stocks in Asia were mixed on Monday amid a series of geopolitical developments across the region. The Nikkei 225 in Japan added 0.24% to close at 21,301.73 ...
Retail Forex Trading on rise in Nigeria, but beware of scams Guardian Nigeria
You might have heard terms like Retail Forex & currency exchange rates when you visit your Bank or Western Union, while travelling abroad or when you are ...
Why forex trading is an ideal home business venture Business Leader
Foreign exchange trading is an increasingly popular way to make money while working from home, and with application, discipline and hard work it can be ...
China's currency is sending a warning signal about the trade war CNBC
China's currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it's signaling things aren't going well.
Refinitiv currency trading and data terminals face ‘major incident’ Financial Times
Products used by investors and news organisations suffer glitch ahead of London open.
Multi-Currency Exchange BTSE launches Bitcoin futures platform at Magical Crypto Conference in New York - Yahoo Finance
Multi-Currency Exchange BTSE launches Bitcoin futures platform at Magical Crypto Conference in New York Yahoo Finance
Multi-currency fiat-to-cryptocurrency exchange, BTSE, announced its 100x leveraged Bitcoin futures product at the MCC Conference (Magical Crypto ...
How to Start a Currency Trading Business Virtual-Strategy Magazine
Thinking on how to start a currency trading business? Then you are in the right place. Currency trading remains the largest financial market in the world. It's.
Financial conduct regulator warns public about forex-trading charlatans Business Day
Charlatans dangling carrots of unbelievable returns for trading foreign exchange (forex) on your behalf have been thrust into the spotlight by the Financial ...
Forex Trading: GBPJPY Price May Reverse at $139 Inside Bitcoins
Should the Bulls push the price above $141 level and the daily candle close above the level, then, the price may move up further and make $143 level as its ...
Why forex trading isn't everyone's cup of coffee SowetanLIVE Sunday World
You should only consider forex trading once your financial affairs are in order, “and only as an alternative to gambling”, says an investment expert. Trading on ...
Blackstone's Refinitiv Outage Upends Currency Trades Bloomberg
Technological problems at Refinitiv, the former financial and risk business of Thomson Reuters, have disrupted some currency markets, traders said.
Shaving Milliseconds Off Currency Trades Could Make Singapore Billions Bloomberg
Follow Bloomberg on LINE messenger for all the business news and analysis you need. Singapore is grabbing an opportunity measured in milliseconds to win a ...
Longboat Key firm charged with operating a $75 million foreign currency trading scheme - Sarasota Herald-Tribune
Longboat Key firm charged with operating a $75 million foreign currency trading scheme Sarasota Herald-Tribune
The Commodity Futures Trading Commission claims the Oasis International Group Ltd. of Longboat Key, CEO Michael J. DaCorta and others fraudulently ...
23-year-old making handsome profits from forex trading Daily Nation
Patience, grit and fiscal discipline are key to success in the field, Paul Mugenda says.
Rupee Moves Above 70 Mark Against Dollar NDTV News
The rupee appreciated by 79 paise to 69.44 against the US dollar in early trade on Monday, a day after exit poll results suggested another term for the ruling ...
Dollar lower in holiday-thin trade, oil drives loonie, rouble gains CNBC
The dollar was little changed against a basket of currencies in thin holiday-impacted trading on Monday, while a jump in the price of oil on news that Washington ...
Forex Trading Opportunities for the Week Ahead FXStreet
About the Author Sam Eder is a currency trader and author of "The Definitive Guide to Developing a Winning Forex Trading System" and ...
ATP backs ethical currency trading code | News | IPE IPE.com
Danish pension fund ATP has signed up to the FX Global Code, a scheme created by the Bank of International Settlements (BIS) and central banks outlining ...
Gold Price Outlook: Gold Breaches Trend-Line, Yearly Low Exposed DailyFX
Gold price remains on the move as last week's flare of strength has fallen flat. Prices are now below the trend-line that's held the lows since last August.
Millions lost in 'celebrity-backed scams' BBC News
Celebrity influencers are being used to promote crypto-asset or currency trading schemes which are scams.
Islamic currency trade gaining popularity, but has to follow rules Gulf Times
Last week's launch of an Islamic trading account by one of the world's largest online currency and multi-asset trading platforms, eToro, has quickly filled.
What trade war? China stocks jump after tariff hike CNBC
The U.S. raised tariffs on $200 billion worth of Chinese goods to 25% at midnight ET Friday — but Chinese stocks still rallied.
How to Calculate Pips in Forex Trading: A Guide for Beginners Benzinga
FOREX.com is the largest forex broker for US traders. You will get competitive pricing, award-winning customer *service*, actionable data, and powerful trading ...
Best forex trading strategies and tips IG
Discover ten of the most popular forex trading strategies – including using Bollinger bands, Fibonacci retracements and the Bladerunner strategy.
Integral Reports falling Institutional Forex Trading Volumes CryptoVibes
Integral, an institutional trading platform provider, recently published its monthly trading volumes for April 2019. This time, the numbers have fallen.
The Best Forex Trading Tools: A Checklist for All Forex Traders Benzinga
FOREX.com is one of the world's largest forex brokers. Account holders get competitive pricing, award-winning customer *service*, actionable data and powerful ...
USD/CAD - Canadian Dollar Rises on Oil Bounce Baystreet.ca
Canadians were on holiday yesterday, and the Canadian dollar rallied in their absence. The news that the U.S. agreed to end the tariffs on Canadian steel and ...
Bitcoin margin trading on crypto exchange Bit-Z goes live CryptoNinjas
Today, bitcoin and cryptocurrency exchange Bit-Z has launched margin trading capabilities. For now, leveraged trading supports the BTC/USDT market with up.
10 Best Zero Spread Forex Brokers (Starting From 0 Pip) in 2019 FXDailyReport.com
List of top online forex brokers that offer 0 pip spread trading accounts in 2019 and fully regulated by ASIC, CySEC, FCA UK, and IFSC Belize. Check it out here ...
Asia markets slip as Trump claims China 'broke the deal' in trade talks; South Korea tumbles 3% - CNBC
Asia markets slip as Trump claims China 'broke the deal' in trade talks; South Korea tumbles 3% CNBC
Stocks in Asia declined on Thursday as investors remained cautious after U.S. President Donald Trump claimed China "broke the deal" in the ongoing trade ...
What's the Future of Islamic Currency Trade? Al Bawaba
Last week's launch of an Islamic trading account by one of the world's largest online currency and multi-asset trading platforms, eToro, has quickly filled Islamic ...
Forex Trading – What You Need to... Forex Crunch
Forex trading is popular with many people because you do not need to make a large investment to get started. However, while it's certainly possible to.
GBPUSD Rate Breaks Bearish Sequence Despite Cautious BoE Rhetoric DailyFX
Recent price action in GBP/USD raises the risk for a near-term rebound as the exchange rate fails to extend the series of lower highs & low from the previous ...
Kenya: CMA licenses second non-dealing online forex trading broker - Journalducameroun.com - English
Kenya: CMA licenses second non-dealing online forex trading broker Journalducameroun.com - English
Published on 13.05.2019 at 14h21 by APA News. Share. The Board of the Capital Markets Authority (CMA) on Monday announced they have approved the grant ...
Currency Trading Price Targets For the US Dollar and Euro See It Market
The US Dollar Index looks like it is headed back towards the 100 level. Guy Cerundolo discusses his analysis and price targets for the greenback.
How AI Is Shaping Forex Trading : Tech Science World Report
Here's how AI is shaping Forex trading. The 21st century is rapidly becoming defined by the emergence of intelligent machines powered by impressive software, ...
Forex Leverage - How it Works, CFD Leverage Explained FX Empire
Trading the forex markets is attractive for several reasons and one of the most important features is leverage. Investors love the idea that they can borrow capital ...
Top and The Best Forex Brokers in Kenya Fully Regulated for 2019 FXDailyReport.com
All over the world, Forex trading is now considered as a lucrative online business, and Kenya has not been left behind. It's because of this reason that the ...
S'pore aims to cut sub-second lag to boost forex trading The Straits Times
Singapore is grabbing a sub-second opportunity to win a bigger slice of the world's US$5.1 trillion (S$7 trillion) a day foreign exchange market.. Read more at ...
Crypto-Currency Exchange Loses $40M via Hackers FTF News
Binance is reeling from a hacking on May 7 while a new poll shows strong investor interest in crypto-currencies.
Why are forex trading signals important? ForexLive
A look at signal services from UBCFX Why are Forex trading signals important? After you are happy with your 'demo' account, you will want to start trading.
The CAD is the strongest while the AUD is the weakest as NA trader enter for day ForexLive
The CAD is the strongest currency. The AUD is the weakest as NA traders enter for the day. Canada was closed yesterday in observance of Victoria Day. At the ...
XTB Reports Significant Drop in CFD Currency Trading in Q1 2019 Finance Magnates
XTB continues to feel the pinch of the recently-implemented regulations from ESMA, as the firm has reported a drop in revenues in the first quarter of 2019.
Argentex reports another year of record revenue and profit growth Leaprate Forex Trading News
FCA regulated provider of foreign exchange services to corporate and private clients across EMEA, Argentex LLP, just announced its financial results for the ...
Currency Volatility: EUR/USD and AUD/JPY in Focus DailyFX
Upcoming event risk and lingering market threats place EUR/USD and AUD/JPY in the spotlight next week for potentially sizable swings in spot prices.
5 features that describe Gemini virtual currency exchange Cryptoline News
Gemini virtual currency exchange has set a new standard in the cryptocurrency market due to its openness to work with regulators. Also, the exchange has been ...
Equity Bank forex trade earnings rise to Sh819m Business Daily
Equity handled Sh30.93 billion worth of remittances during the quarter.
US Dollar Price Breakout Still Possible; US-China Trade War Latest DailyFX
The DXY Index touched a *fresh* monthly high on Tuesday, drawing into focus a potential bullish breakout opportunity around the May FOMC minutes release ...
The AUD is the strongest and the USD and EUR are the weakest ForexLive
North American traders enter for the week with the AUD as the strongest and USD and EUR as the weakest The trading week for North American traders is ...
Step-By-Step Guide How to Register Forex Trading Account FXDailyReport.com
Regardless of which type of forex account you choose, installing and logging in is almost as easy as with any other software. First, you should be aware of how ...
US China trade war benefits the US dollar Pound Sterling Forecast
The US dollar has made substantial gains against the majority of major currencies due to it's status as a safe haven currency.
Oil, Hot Stocks, and Currencies – Part III FX Empire
In our continued effort to help skilled traders/investors understand the future risks associated with geopolitical market turmoil, the EU Elections next week and the ...
Trading Bots: Are They a Force for Good? Cointelegraph
Trading bots have become a staple of today's markets — especially in the 24-hour cryptocurrency industry. But while some have gained popularity by enabling ...
British Pound Jumps as UK PM May Seeks Second Referendum on Brexit DailyFX
GBPUSD prices are rallying sharply amid the last-ditch effort by UK Prime Minister Theresa May to prevent a no deal, “hard Brexit.”
FinCEN Announces First Enforcement Action Against Peer-to-Peer Virtual Currency Exchange Lexology
On April 18, 2019, the Financial Crimes Enforcement Network (“FinCEN”) announced its first enforcement action against a peer-to-peer virtual currency ...
NZD/USD Forex Technical Analysis – May 21, 2019 Forecast FX Empire
Look for the downtrend to continue at a pace of .001 per day as long as the NZD/USD remains under this level. Crossing to the weak side of the downtrending ...
Stock trading in red: Nordson Corporation (NASDAQ: NDSN) FXDailyReport.com
Nordson Corporation (NASDAQ: NDSN) stock fell 3.43% on 20th May, 2019 (As of 7:03 am GMT-4; Source: Google finance) after the company posted lower ...
US Dollar Index firmer around 98.00, attention to... Forex Crunch
DXY pushes higher and reclaims the 98.00 handle. Yields of the US 10-year note climb to highs near 2.43%. Existing Home Sales, Fedspeak next of relevance.
The Twilight Trading Hour Strikes Currency Markets Again The Wall Street Journal
There is a fragile spot in the $5.1 trillion currency market: early morning in Asia. This one- to two-hour period when U.S. traders are heading home—but market ...
Market Movers for May 21, 2019 DailyForex.com
During the transactions of Tuesday, May 21, 2019, the markets will focus on the announcements from the economic agenda.
USD/ZAR Daily Forecast DailyForex.com
The US dollar continues to be very choppy against some emerging market currencies, and of course the South African Rand will be any different.
Digital Renminbi: A Fiat Coin to Make M0 Great Again CoinDesk
Dovey Wan is a partner at Primitive Ventures, a crypto asset investment fund. Contrary to what many think, China does not oppose blockchain technology.
China Says Firms are not Exiting Due to Trade War MarketPulse
Foreign investors remained enthusiastic about China, the foreign ministry said on Tuesday, following U.S. President Donald Trump's claim that his tariffs are ...
Sterling Trades at Five Month Lows on Brexit worries MarketPulse
Tuesday May 21: Five things the markets are talking about. European equities along with U.S. futures are trading a tad higher following a mixed session in Asia ...
Forex trading – what are the best currencies to trade? Capital.com
Currencies are priced in other currencies, and all major denominations are quoted in “cross rates” against each other. Traders may choose a fairly predictable ...
Are forex trading signals for you? ForexLive
What you need to know about signals from UBCFX Foreign exchange or forex is defined as the exchange of a nation's currency for that of another is. Overall, the ...
Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Binance Coin, Stellar, Cardano, TRON: Price Analysis May 20 - Cointelegraph
Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Binance Coin, Stellar, Cardano, TRON: Price Analysis May 20 Cointelegraph
Bitcoin rallied about 101.55% between April 2 and May 14. This sharp rally after a long bear phase surprised many, including us. Analysts at JPMorgan Chase ...
Euro US Dollar Exchange Rate Forecasts: Single Currency Faces A "Cocktail Of Risks" - Exchange Rates UK
Euro US Dollar Exchange Rate Forecasts: Single Currency Faces A "Cocktail Of Risks" Exchange Rates UK
"The EUR/USD has managed to break – and just about hold above – short term trend resistance (now modest support at 1.1215)" Scotiabank May 13. Reflecting ...
Bitfinex Will List Its New Exchange Token Starting Monday CoinDesk
Crypto exchange Bitfinex will list its new exchange token, LEO, on Monday after purportedly raising $1 billion from the initial offering. In an announcement Friday ...
Japan’s Golden Week could provide opportunities for currency traders, but business as usual for bond investors - MarketWatch
Japan’s Golden Week could provide opportunities for currency traders, but business as usual for bond investors MarketWatch
For yen traders, fluctuations in the currency have traditionally been correlated with equity markets and broad economic sentiment. As appetite for assets ...
'Gold Has Nothing To Stand On Right Now': Watch The $1269 Price Level - Analysts Kitco News
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and ...
The 9 Best Forex Trading Courses - Forex Trading Training • Benzinga Benzinga
Forex trading courses can be the make or break when it comes to investing successfully. Read and learn from Benzinga's top training options.
Forex trading: Understanding account types and differences ForexLive
Instaforex: See what different account options are available to FX traders There are a number of different account types available in the FX sphere and this article ...
Best Forex Trading Software Benzinga
Forex trading is an around the clock market. Benzinga provides the essential research to determine the best trading software for you in 2019.
What is Forex Trading? Complete Beginner’s Guide Blockonomi
The foreign exchange market (forex) for international currencies is the largest and most liquid market in the world. According to the Bank of International ...
Learn the Basics of Trading Currencies FX Empire
Learning the basics in currency trading is not complicated. Building your own strategy to make and making it work is a different story.
Citi Joins UBS in Setting Up Singapore Currency Trading Hub Bloomberg
Citigroup Inc. is planning to join UBS AG with an electronic currency trading and pricing platform in Singapore, setting up systems to boost liquidity in Asia's ...
Best Forex Trading Mobile App Benzinga
FOREX.com is one of the the largest forex broker for traders. You will get competitive pricing, award-winning customer *service*, and powerful trading platforms to ...
FX Trading - Currency Trading FXTM
Discover the details of foreign exchange, currency trading, currency pairs, forex market hours, forex trading fundamentals, trading signals and more. | FXTM ...
Market Roundup 7th May DailyForex.com
The big news this morning as London came online was the Reserve Bank of Australia's surprising decision to leave its interest rate unchanged at 1.50%
Brexit is a nightmare for currency traders CNN
The Brexit deal negotiated by Prime Minister Theresa May will almost certainly be voted down by UK parliament on Tuesday. Currency traders are trying to figure ...
Currency Traders Should Get Ready for Big Move in the Dollar Bloomberg
Currency traders should brace for a large move in the dollar, if past periods of low volatility are a guide.
Fortune 500 Currency Trading Moneyshow.com
Tracking the moves of the big players can put us on the right side of market's turns, write.
Proper Forex trading plans are never too aggressive AZ Big Media
Most control must come to risk management. There will be a good trading performance if you can handle the trading performance with that. In this article, we are ...
How Does Forex Trading Work? FinSMEs
Forex trading is one of the most profitable money-making options — a successful trader can double their investment in 6 months. However, it is also extremely ...
FX Futures: How Currency Trading Revolutionized Finance TheStreet.com
Financial futures today represent 90 percent of global futures trade, with currency futures being the first financial futures product to trade 45 years ago. Today's ...
A Guide to GDP and Forex Trading DailyFX
GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to ...
How to Trade Forex - and Is It Worth the Risk? TheStreet.com
Trading currencies is an enormous part of the world market. Here's how it works and whether it's worth the risk....VLKAF.
The Best Tips for Forex Trading in 2019 FinSMEs
Welcoming the New Year with a goal to increase one's financial wealth is always a good thing. Whether it's investing in assets like Forex, company shares, and ...
Currency trading slumps globally as swaps, forwards fall out of favor Pensions & Investments
Global activity in the foreign-exchange market is on the decline as traders step away from forward and swap transactions.
Currency trading: Morgan Stanley says delusional investors making mistake Business Insider
Hans Redeker, the lead global FX strategist for Morgan Stanley, says investors are making a crucial mistake that could end up working against them.
What is Forex Trading? Benzinga
Benzinga's financial experts detail trading in the Forex market, which is the largest market in the world. Read and compare options for 2019 .
How to Minimize your Risk in Forex Trading? LearnBonds
Forex trading is considered to be a risky endeavor. From the definition of the forex market, you can see it is an unpredictable business. It's merely a.
How to Trade Forex Benzinga
Learn how to trade forex. Our guide provides simple and easy to follow instructions for beginner investors who want to start now.