The most comprehensive educational resources for finance

How to Calculate Foreign Exchange Gain and Loss

Foreign exchange trading involves buying and selling currencies with the intent of making a profit. However, forex trading is very challenging and tricky as a number of factors affect the exchange rates. While trading in currencies, it is important for traders to be fully aware of their positions, and whether they are making profits or

How to Get Historical Exchange Rates?

If you are running or managing a global business with sales and operations in many different countries, then you will need the historical exchange rate data for various reasons such as consolidating and reconciling the accounts, identifying forex trends, hedging, and so on. For example, revenue earned in the month of March needs to be

How to Interpret Foreign Exchange Rates?

The foreign exchange rates help us determine the value of one currency in terms of another currency. The foreign exchange market is a global 24-hour market where traders from around the world buy and sell currencies for various purposes including speculation, and hedging. When you travel to another country you will need to convert your

What is MetaTrader 4?

MetaTrader 4 is one of the most widely used electronic trading platforms used by retail foreign exchange traders for trading in forex, futures and options. MetaTrader 4 is made by a company called MetaQuotes Software and was first released on 2005. MetaTrader is a completely programmable trading platform and has its own programming language called

Managing Risks Associated with Settlement of Foreign Exchange Transactions

The foreign exchange market has made significant strides in reducing the risks associated with the settlement of FX transactions. Substantial FX settlement-related risks remain, however, not least because of the rapid growth in the FX trading. BIS has released supervisory guidance for managing risks associated with the settlement of foreign exchange transactions. It provides a

Accounting for Foreign Exchange Transactions

In this article, you will learn about how to account for foreign currency transactions undertaken by the domestic company. A foreign exchange transaction takes place when a domestic company (such as a company in the US) enters into a transaction with a buyer or seller in another country (such as UK) to buy or sell

Trading Blocs, Common Markets, and Economic Unions

Countries often enter into different types of agreements with respect to their trade policies. The objective of such agreements is to reduce the trade barriers among countries. These types of agreements are generally referred to as trade blocs or regional trading agreements (RTA), under which a group of countries agree to reduce or eliminate trade