In exchange markets, this is a simultaneous sale of a currency on the spot market together with a purchase of the same amount on the Forward Market. By combining these two transactions into a single one,transactions costs may be reduced. An arrangement between central banks whereby they each agree to lend their currency to the other.
Browse by Subjects
forward exchange rate
See All Related Terms »
base weighted index
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):