interest rate differential (IRD)
The difference between the return achieved by depositing in one currency versus the money paid for borrowing in another. forex traders use the interest rate differential and the concept of interest parity to determine forward forex rates and to compute forex swaps. It also determines the amount that an investor using the Carry Trade can profit by if the exchange rate remains steady.

Browse by Subjects

Popular Forex Terms

penny stock
audit trail
enterprise accounting
ex-dividend shares
City Panel on Takeovers and Mergers
Office Of Compliance Inspections and Examinations (OCIE)