Forex market Flashcards

1
Q

What direct and indirect quote

A

Say cad is home country:
direct: how many Cad for one foreign
Indirect: how many foreign for a CAD

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2
Q

American and european quotes

A

AM: $ per unit of foreign
EUR: opposite

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3
Q

What is the arbitrage excluding condition

A

There is no arbitrage if the bid ask quotes are ovelapping

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