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Balance sheet hedging

Balance sheet hedging is a corporate treasury method used by businesses operating with foreign currencies to reduce the potential impact of exchange rate fluctuations in their balance sheet. More info FX Forward Contracts Dynamic Hedging FX Management API Main aspects of balance sheet hedging Measuring the impact of exchange rate volatility on the value of […]

Base currency

In a currency pair quote, the base currency, also known as the primary currency, is the first currency shown. The second currency shown is referred to as the quote currency. Currencies are quoted in relation to other currencies. For example, in the EUR/USD currency pair, EUR is the first currency shown, and always has a […]

Base currency interest rates

The base currency interest rate in a currency pair is the interest rate set by the central bank that issued the base currency, also known as the transaction currency. In FX markets, currencies are quoted in relation to other currencies and represented in pairs. In the EUR/USD pair, the euro is the base currency, while […]

Basiswährung

Um einen Wechselkurs anzugeben, werden in der Regel die ISO-Codes der beiden Währungen aneinandergehängt. Die zuerst genannte Währung bezeichnet man als Basiswährung. Die an zweiter Stelle genannte Währung wird variable Währung oder Gegenwährung genannt. Währungen werden immer in Quotierung gegen eine andere Währung angegeben. Bei dem Währungspaar EUR/USD ist zum Beispiel der Euro die zuerst […]

Batch payment processing

Batch payment processing refers to a procedure that involves bundling payables to process them in group payments. This method boosts efficiency by reducing the time required to execute them manually. More info International Payments Payments Hub Currency Accounts Payments Automation Businesses with an international presence that rely on a global supply chain often need to process […]

Bid/ask spread

In foreign exchange, the “bid/ask spread” or “buy /offer spread” – more commonly known simply as the “spread” – is the difference in price by which the “bid” price exceeds the “ask” price of a specific asset (such as a currency, stock, option or futures contract). The “bid” price is the price that a buyer is […]

Bitcoin

Bitcoin is a consensus network that enabled a new payment system and a digital currency, which was created in 2009. It is the first decentralized peer-to-peer payment network powered by users and has no central authority or middlemen. From a user perspective, Bitcoin is like cash but can only be used online. Bitcoin operates via […]

Blocked currency

A blocked currency, also known as a “non-convertible currency” or “restricted currency”, is a currency that is subject to governmental restrictions and is not traded in the foreign exchange market, meaning its use is predominantly limited to domestic transactions. There are diverse reasons why governments restrict the use of their currencies, but a common one […]

Brazilian Real

The Brazilian real is the official currency of Brazil, its ISO code is BRL, and its symbol is (R$). The Banco Central (the Brazilian central bank) issues the real do Brasil, and its value is subdivided into 100 centavos. The real is a relatively modern currency, as it was adopted in 1994, to replace the […]

Break Forward

A break forward, also known as a cancellable forward, capped forward or cancellable option, is a derivative product halfway between a forward contract and an option. Break forwards give buyers the possibility – but not the obligation – to purchase a specific currency at a predefined rate, known as the delivery price, on maturity. Due […]