Revaluation Rates

AAA

DEFINITION of 'Revaluation Rates'

Market currency rates from a specific point in time that are used as a base value by currency traders to assess whether a profit or a loss has been realized for the day. In most cases, the revaluation rate is the closing rate for the previous trading day.

INVESTOPEDIA EXPLAINS 'Revaluation Rates'

For example, in order to assess how much profit a currency trader made today, he or she would use yesterday's closing rate (today's revaluation rate) of 1.15 USD/CAD as a baseline for comparing today's closing rate of 1.145 USD/CAD. If the trader shorts the U.S. dollar in early trading and then buys it back at the end of the day, he or she will make $0.005 for every U.S. dollar traded.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Closing

    The end of a trading session. The closing of a trading day halts ...
  3. Appreciation

    An increase in the value of an asset over time. The increase ...
  4. Currency

    A generally accepted form of money, including coins and paper ...
  5. Forex - FX

    The market in which currencies are traded. The forex market is ...
  6. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
Related Articles
  1. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  2. Top 7 Questions About Currency Trading ...
    Forex Education

    Top 7 Questions About Currency Trading ...

  3. Getting Started In Forex
    Options & Futures

    Getting Started In Forex

  4. In the forex market, how is the closing ...
    Trading Strategies

    In the forex market, how is the closing ...

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center