Leads And Lags

Dictionary Says

Definition of 'Leads And Lags'

The alteration of normal payment or receipts in a foreign exchange transaction because of an expected change in exchange rates. An expected increase in exchange rates is likely to speed up payments, while an expected decrease in exchange rates will probably slow them down.
Investopedia Says

Investopedia explains 'Leads And Lags'

Accelerating the transaction is known as "leads", while slowing it down is known as "lags". Leads will result when firms or individuals making payments expect an increase in the foreign-exchange rate, while lags arise when the exchange rate is expected to fall. Leads and lags are used in an attempt to improve profits.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Exchange Rate

    The price of one ...
  2. Foreign Currency Effects

    The gain or loss ...
  3. Transaction Exposure

    The risk, faced ...
  4. Translation Exposure

    The risk that a ...
  5. Foreign-Exchange Risk

    1. The risk of ...
  6. Currency Basket

    A selected group ...
  7. Forex - FX

    The market in ...
  8. Authorized Forex Dealer

    Any type of ...
  9. Cash Delivery

    1. The same-day ...
  10. Rollover Rate (Forex)

    The net interest ...

Articles Of Interest

  1. Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  2. Dual And Multiple Exchange Rates 101

    Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work.
  3. What are leading, lagging and coincident indicators? What are they for?

  4. The Forex Three-Session System

    Market hours for Tokyo, London and New York determine volatility peaks. Find out why.
  5. A Forex Trader's View Of The Aussie/Gold Relationship

    We look at why this relationship exists and how you can use it to produce solid gold returns.
  6. America's Loss Is The Currency Market's Gain

    The Smithsonian Agreement hurt the U.S. in the short-term, but was necessary in furthering real market-driven exchange rates.
  7. Fundamental Speed: The "Duck-And-Jab" Approach To Forex

    By using economic releases in a timely way, buyers can beat the "big players" without endless chart analysis.
  8. The Currency Market Information Edge

    Unique features of the forex market may allow larger players to get a jump on smaller ones.
  9. Making Sense Of The EUR/CHF Relationship

    The strong correlation between EUR and CHF currency pairs is undeniable. Find out what it means for forex traders.
  10. Forex Taxation Basics

    Trading forex can make for a confusing time organizing your taxes. These simple steps will keep everything straight.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center