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1 基本概念
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2 PPT
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3 可汗公开课
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4 视频小课堂
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5 自我测试
Ⅰ What is Foreign Exchange?
Foreign Exchange: the act of trading one country’s currency for another country’scurrency.
ForeignExchange Market：The Foreign Exchange Market (FEM) is themarket where one country’s money is traded for that of another country.
Exchange Rate： The price of a country’s money in terms ofanother is called the exchange rate.
ⅡForeign Exchange Trading
The foreign exchange market is the world’s largest market.
Most of the transactions are Interbanktrading and speculation (rather than payments for goods and services).
The FEM is almost always open.(24-hour trading )
Ⅲ Some Definitions
1. Exchange rate – is the price of one money in terms ofanother currency.
2. Direct and Indirect Quotes
Direct quote is the amount of domesticcurrency per unit of foreign currency.
Indirect quoteis the amount of foreign currency per unit of domestic currency.
3. European and American Quotes for the U.S.Dollar
American quote is the dollar per currency quote, i.e. the price of other currencies interms of the dollar.
European quote is the currencies per dollar quote, i.e. the price of the dollar interms of the other currencies.
4.Appreciation vs. Depreciation
Depreciation: a fall in the exchange rate value of a currency.
Appreciation: a rise in the exchange rate value of a currency.
5. Spot exchange transactions vs. Forward exchange transactions
Spot exchange transactions - involve theimmediate exchange of currency, mostly involving bank deposits. This is the price of a currency for currentdelivery.
Forward exchange transactions - involve the exchange of currency at some specifiedfuture date.
