Sara
Mon Sep 09 2024
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7 answers
1349
What is the difference between spot exchange rate and forward exchange rate?
Could you please clarify the distinction between the spot exchange rate and the forward exchange rate? I'm curious to understand how they differ in terms of their purpose, calculation methods, and their relevance in financial transactions involving cryptocurrencies and traditional currencies. How do these exchange rates factor into risk management strategies, and what are some of the key factors that can influence their fluctuations?
Leonardo
Thu Aug 08 2024
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6 answers
1627
What is forward exchange rate?
Could you please explain what the forward exchange rate is? I understand it has something to do with the expected future value of one currency in relation to another, but I'm not entirely clear on the specifics. Is it set by a central bank or market participants? How does it differ from the spot exchange rate? And what factors influence its movements? I'm interested in understanding how it can be used in financial decision-making, so any insights you can provide would be greatly appreciated.
