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Category Archives: Forex Glossary

Basis

Basis is the difference in price between the futures price and the price of the underlying asset. The basis can be both positive and negative. By the time the contract expires, the basis will be zero, as futures and spot prices will be equal.
Posted byWinstone MarketJuly 14, 2020September 10, 2020Posted inForex GlossaryLeave a comment on Basis

Basis point

A Basis point is a unit of measurement which is equal to one hundredth of a percent. When interest rates are calculated it is necessary to remove all ambiguity: in this case the unit becomes the base point. For example, an increase of the base rate from 7% to 7.2% would imply a 20 base [...]
Posted byWinstone MarketJuly 14, 2020September 10, 2020Posted inForex GlossaryLeave a comment on Basis point

Base Interest Rate

There are interest rates that banks set to determine the key interest rate for different types of lending. Their size depends on the supply and demand for credit resources, market interest rates and other factors. Initially, the base interest rate is set by the central bank of the country; at this rate, all other banks [...]
Posted byWinstone MarketJuly 14, 2020September 10, 2020Posted inForex GlossaryLeave a comment on Base Interest Rate

Base currency

The first currency in a currency pair in the Forex market.
Posted byWinstone MarketJuly 14, 2020September 10, 2020Posted inForex GlossaryLeave a comment on Base currency

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