Wednesday, December 12, 2012

Fixed exchange rate

Fixed exchange rate

Fixed exchange rate - is the official exchange rate that puts the monetary authorities of one
Or more currencies. In practice, also of fixed exchange rates ranging from
Upper and lower bands and clear, leading to intervention.

Fixed interest - in this type of transaction is paid an agreed rate of interest, which
Remains constant over the deal. Often find fixed interest in mortgage bonds
Mortgage and a fixed rate.

Floating interest rate - unlike the fixed interest rate, the interest rate on this type changed
With market fluctuations.

Foreign currency is expressed above or below the spot price. For Price
Actual transactions futures, margin must be added on the spot price. Price reflects
Bargain price futures in history that would have been determined, so that there is no impact on the
Profit and loss in the event of change in price. Price is calculated according to the interest rates on
Deposits related currencies and the spot price of currencies. Unlike futures contracts,
Futures can be customized according to the needs of both parties with more
Flexible. As there is no central exchange.  

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