Peer to peer foreign exchange (P2P FX)

P2P foreign exchange (peer-to-peer foreign exchange) is a sector within foreign exchange, which cuts out the middleman – banks and brokers – and the associated costs by connecting two parties…

Peer-to-peer currency transaction

Peer-to-peer currency transactions cut out the middleman (banks and brokers) and the related intermediation costs by directly connecting the two parties to an exchange. They involve matching two parties, each…

Pegged Exchange Rate

A pegged exchange rate, also known as a fixed exchange rate, is where the currency of one country is tied to a usually stronger currency, such as the euro, US…

Plain vanilla

A “plain vanilla” is the most standard of financial products. In foreign exchange, plain vanilla products include hedging tools such as currency forwards and options. They are free from more complex…

Pre-transaction risk

Pre-transaction risk is the term used to describe the currency volatility risk to which a company is exposed from the moment they submit a bid for a business contract in…

Presentation currency

The term presentation currency or reporting currency is an accounting concept defined by the International Accounting Standards (IAS 21) that refers to the currency in which an entity presents its…

Product bundling

Product bundling is a marketing practice that involves selling a range of different goods or services as a unique end product. There are different types of product bundling. Closed bundle: the customer…

Quantitative easing

Quantitative easing (QE) is an unconventional monetary policy tool that consists in a large-scale purchasing of assets by a central bank using money that it has newly created. It is more…

Quote currency

In a currency pair quote, the quote currency, also known as the secondary currency, is the second currency shown. In the currency pair EUR/USD, U.S. dollar (USD) is the quote currency….

Quote currency interest rates

In a currency pair, the quote currency interest rate is the interest rate set by the central bank that issues the quote currency. In FX markets, currencies are quoted in relation…

Range Forward

A range forward is a derivative contract that protects buyers against adverse market movements, allowing them to benefit from favourable spot rate movements within a certain range that lies between…

Ratio Knock-out Forward

A ratio knock-out forward is a structured option contract that allows the purchaser to lock in a more favourable exchange rate than with an outright forward, for a predefined ratio…

Realised gains and losses

Realised gains and losses is an accounting concept to define the results obtained after the sale of an asset or the settlement of a product or service liability claim is…

Reconciliation

Reconciliation is an accounting concept that refers to the process of confirming that a set of two records are in agreement. More info Payments Hub

Reference Exchange Rate (Central Bank)

The Reference Rates are the exchange rates fixed by central banks for all currencies, usually on a daily basis. They are based on a regular daily concertation procedure involving all…