CASE STUDY ON FOREX BY ASHISH SIR
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is a forex swap transaction?
A forex swap involves simultaneously buying and selling the same amount of a currency on two different value dates, commonly used to roll over positions or manage short-term liquidity.
What is a 'tom' (tomorrow) transaction in forex markets?
Settlement on the next working day after trade date.
What does 'value date' mean in a forex transaction?
The value date is the actual date on which the currency exchange (delivery and receipt) takes place, as opposed to the trade date when the deal is struck.
What is meant by 'cable' in forex trading terminology?
Informal term for the GBP/USD currency pair.
What is a spot forex transaction?
A spot transaction is a foreign exchange deal settled within two business days (T+2) of the trade date, at the prevailing spot exchange rate.
What is a 'pip' in forex trading?
Smallest price movement, typically 0.0001 in most pairs.
What is a forward exchange contract?
A forward exchange contract is an agreement to buy or sell a specified amount of foreign currency at a pre-agreed rate on a future date beyond the spot settlement date.
What is the difference between direct and indirect quote in forex?
Direct: domestic currency per unit foreign; indirect: reverse.
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