Foreign Exchange Markets
Free GARP FRM Part I lesson in Financial Markets and Products. 22 min read, ~3,309 words.
Spot quotes settle T+2; forward quotes lock a future rate; futures trade on exchanges (CME) with standardized maturities. Bid-ask spread = ask − bid; spreads widen for thinner pairs and longer-dated forwards. Three FX risks: transaction (contracted future cash flow at uncertain rate), translation (consolidating foreign-subsidiary financials), economic (long-run competitive...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
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