FX market Flashcards
1
Q
FX market
A
conversion of purchasing power from one currency to another
no central market place
largest financial market
2
Q
Currency carry trade
A
Investing in a currency that has a high rate of interest and funding the purchase by borrowing in a currency with low rates of interest, without any hedging.
Interest rate differential is greater than the appreciation of the funding currency against the investment currency.
