When the media talk about the foreign exchange

  • The difference between the BID and ASK price is called the SPREAD.

      The FOREIGN EXCHANGE MARKET also called FOREX or FX, has no trading centre. When the media talk about the foreign exchange market, it is the wholesale level they refer to.

      CABLE: When the steel cable was connected under the Atlantic in 1850 thus linking USA with UK enabling telegraph transmission between the London and New York Exchanges, it was called ATLANTIC CABLE.

      Unlike the London Stock Exchange or the New York Stock Exchange centres, it has no fixed abode, but manages very well and is extremely active.

      MARGIN refers to a deposit in cash required to cover the possibility of brake lining suppliers loss the client may encounter trading the foreign exchange.

      To jump this hurdle, we go to the bank to handle the currency exchange, or to a number of foreign currency exchange companies we can find on the internet, who will invariably quote far better rates of exchange. Believe me they will, they could not exist if they did not offer a better deal.We come face to face with our local money every day. The time will come when some of us will need to make or receive a payment in a foreign currency.

      . They make no commission. Satellite and optic cables are now used, and the word CABLE refers to GBP/USD currency pair rate.

      You do not have to be a mechanic to know some essential words about a car like the steering wheel, the hand brake, clutch pedal, the engine etc. On another level, there are smaller agents who handle the buying and selling of the foreign currencies, going by the rates as signalled by Reuters or other agencies.

      OFFER is the rate at which the dealer is ready to sell the basic currency.

      BID is the rate at which a dealer is ready to purchase the base currency.