SWAP operation is rollover to the next day. It is carried out on a worldwide scheme with involvement of countries’ interest rates. Forex market works on SPOT conditions. This means that all the transactions concluded in the current working day, must be carried out throughout the supply of the same amount of currency on the second business day. To avoid this supply, it is necessary to make the transaction of SWAP type (ie, close and re-open a position at the current rate), which allows you to settle the obligations of the parties....
The US Dollar has a very impressive rally despite all the bad news which were released out of the US. It appears as nothing can stop the US currency from its advance. The US Dollar rallied as the US has released slightly positive data, but for the largest part the US Dollar has also rallied when the US reported negative economic data. How much further can the US Dollar rally from current levels or are we near the top of its current move and is it time to take profits and look the other way? The opinion on this matter differs and one key...
Eurocurrency almost daily updates multi-year lows, which suggest themselves a long time but still scary for investors. Another local minimum of the euro tested early on Monday morning, as soon as the news of the events in Greece appeared. These elections frightened by the prospect for a long time but the reality, which is opening now, perhaps looks simply destructive to many traders. Syriza party, which is confidently won the Greek general elections - a party of young and strong, bold and self-confident people. They do not want to...
The Greek elections are over and Greek President Papoulias has sworn in Alexis Tsipras as the new Greek Prime Minister. Alexis Tsipras is the leader of the Syriza party which has promised to get Greece back on track and out of the Eurozone which would also eliminate the Troika restrictions on Greece and will allow the Mediterranean nation to restructure its debt problems outside of German influence. Many are worried about the impacts this may have on the already weakened Euro. Syriza formed a coalition government with the right wing...
Currency of the state, which is used by the central banks of other countries to create and store cash reserves, as well as for operations on international settlements and investments of foreign countries is called reserve currency. Reserve currency must meet certain requirements: - A convertibility of national currencies; - A stable exchange rate; - A favorable legal regime in international transactions. Reserve currency gives certain advantages to the state whose national currency it is: balance of payments deficit can be covered by...
