Devaluation

The difference between a nation's total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial ...

The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another. For example, the higher the ...

A country's exchange rate regime under which the government or central bank ties the official exchange rate to another country's currency (or the price of gold). The purpose of a fixed ...

A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies. Thus, ...

A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a ...

Informal name given to the impact of the 1994 Mexican economic crisis on the South American economy. The Tequila Effect occurred because of a sudden devaluation in the Mexican peso, ...

A situation in which assets exceed liabilities, income exceeds expenditures, exports exceed imports, or profits exceed losses.

Before entering this market, you should define what you need from your broker and from your strategy.

Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.

This method may seem arcane, but many well-established strategies rely on it.