Questions tagged [foreign-exchange]

This tag is to be used for any question related to rates between 2 pairs of currencies. If the question is generic, only this tag is sufficient. If its specific for a pair of currencies, ideally both the currency tags should also be used.

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Regarding exchange in Taiwan

I am going to taiwan next month and the institution will guve us TWD. I asked the secretary she gave me this link for exchange. It iswritten buy sell cash and spot. So can I really get this rate if I ...
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3 votes
1 answer
323 views

What is the difference between an Order and a Trade?

What is the difference between an order and a trade in the context of financial services and exchanges? From what I understand, an order is an instruction to buy or sell something but trades occur ...
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Complete formula for calculating forex pip value for XAUUSD with account funded in euros

I'm currently developping forex robot using Python API for Metatrader 5. Among different things, this robot places trades given by external signals (with price, SL and TP). I use euro funded account, ...
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3 votes
6 answers
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Cryptocurrency: What happens to coin value when it's transfered from one blockchain network to other?

I am very new to cryptos and trying to understand how transferring of a coin from one blockchain network to another works. For example, let's say that: The Bitcoin blockchain has X coins in ...
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Who loses money in forex?

If i earn money in forex does this anyone from otherside loses money like in stock market. In stock market when we earn someone lose. And if we lose, to whom does that money go?
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Why bid price is used while calculating Forex cross rates?

I was trying to understand how Forex cross rates work. Different articles on internet uses bid price of currency to identify it's current value. My question is, why do they chose bid price and not ...
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178 views

Why did the Iranian Rial peak suddenly on 1 August 2014?

Search Iranian Rial and click on Max above the chart. Iranian Rial to Pound Sterling: 15 November 2013 1 August 2014 18 November 2016 Why did the Iranian Rial peak suddenly on 1 August 2014?
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1 vote
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How to handle holidays when computing T+2 date

I'm implementing an algorithm that finds the T+2 settlement date for FX transactions (from the trade date). I also got a number of examples from the business analysts to test my algorithm. As far as I'...
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173 views

question about the "20 pips challenge"

I am trying to do the "20 pips challenge", where you starts a trading account with small money (here 1000 euros account, but you trade only 2%, i.e 20 $) and where you try to make 20 pips at ...
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1 vote
0 answers
66 views

Selling stocks on a foreign exchange and converting proceeds to USD

Let's say I had 100 shares of ABC on a foreign stock exchange. I sold the shares for a small profit in 2020 and received 1200 ₹. I'm a US resident, so I paid taxes on the gain in the US in 2021. Note ...
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Difference in Ruble prices on Forex vs Moex

Exchange rate of EUR/RUB and USD/RUB on Forex and Moscow Exchange seem to be considerably different and the graphs don't even look similar after some point: EURRUB_TOM / MOEX: 118.99 USDRUB_TOM / ...
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Absurdly high difference between buy and sell rates between Swedish crowns and Russian rubles

I came across the following pretty surprising exchange rates at a Russian bank between Swedish crowns and Russian rubles (https://www.tinkoff.ru/about/exchange/, in Russian): 1118.491 rubles when ...
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-2 votes
1 answer
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Is a trade done in forex when (Ask price = 1) < (Bid price = 2)? and in which price?

In forex market, in a normal mode when Ask = Bid, trade is done. And If Ask = 2 (the lowest price by sellers) > Bid = 1 (the highest price by buyers), so the market is not liquid and no trade would ...
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1 vote
0 answers
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Deducing purchasing power equivalent salaries under tax between two countries

I am trying to figure out how to compute the equivalent salary in a country B given a salary in a country A by taking into account purchasing power parity and tax rates in both countries. The ...
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3 votes
1 answer
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Historic Forex Rates - why are they different and what's the source of truth

I am looking for historical FX data. During the course of my research, I've found that various free providers don't seem to agree on the numbers. For example, searching for USDGBP rates on Friday 30th ...
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1 answer
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how to calculate a profit/loss on multiple currency trading

I would like to understand if there is a rationale behind a multiple currency trade on whether one makes a profit or loss. Let me give an example: Say I have 250000 HKD(Hong Kong dollar) and I sell ...
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Can a non-Turk borrow Turkish lira?

Turkey is currently on the cusp of a hyperinflation apparently triggered by its president's policy of maintaining nominal interest rates far below inflation. Thus Turkish banks are currently giving ...
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What are good criteria to decide how much money I should keep in a foreign exchange credit card account?

The Situation I have a Wise account for EUR and AUD. Into the Wise AUD account I can easily (without fees) put money from an AUD bank account when needed. For most of my purchases I use the AUD ...
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Quantifying and hedging for FX risk

So I am new to investing and currently use an AUD account to invest, but mostly trade USD denoted instruments (mainly XAUUSD). Therefore I am getting unwanted exposure to AUDUSD because of the ...
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1 vote
1 answer
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Do I need to exchange my EU income (Euros) to GBP to get taxed in the UK?

I live in the UK and will start working as a contractor for an EU company soon and I am very new to this process. The company will pay me monthly in Euros, am I obligated exchange them to pounds? I ...
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0 votes
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Difference in de facto currency exposure

Suppose my main currency is SEK and that I want exposure to EM MSCI. Then I could A) buy a Swedish passive fund in SEK that is exposed to EM MSCI or B) Exchange my SEK for EUR or Dollars and then buy ...
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how yahoo finance calculates the close/open currency exchange price?

What is the reference of open/close price mean in Yahoo finance? Does it come from a 24/7 price or does it come from a regular market such as Nasdaq? For example, the Yuan-USD exchange rate in yahoo ...
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Who would trade a commission-based over commission-free for the same currency pair?

(I'm a beginner) In forex, I see that some pairs are both commission and commission-free, what is the difference?
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Why enabling do not reduce DNR order prevent me from trading futures and forex?

When I asked my broker to enable DNR -do not reduce- order, he inform me that to enable that I will not be able to trade futures or forex anymore? What is the relation between them?
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How to invest in El Salvador bonds via fidelity

El Salvador bonds have gone down lately and I would like to invest in them. I use Fidelity to manage my 401k investment fund, but I can't find any symbol to invest in related to El Salvador bonds. Is ...
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How trading fee is calculated in exchanger?

I don't know whether it is the perfect place to ask questions or not, But my question is in DEX or CEX, from where the trading fee is deducted ? from the base or the quote currency ? if trading fee is ...
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0 votes
1 answer
269 views

Why do the traders prefer 1% rule instead of kelly criterion?

Kelly criterion determines the optimal theoretical size for a trade based on historical data of trader. However, I know many traders strongly recommend to not risk more than %1 of their balance and ...
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1 vote
1 answer
131 views

Do ETF/ETNs invest directly in futures or forex, or do they just invest in stocks and bonds?

Do ETF/ETNs invest directly in futures or forex? Or do they just invest in stocks and bonds?
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How to calculate lot size

I am using MT4. I would like to calculate lot size into my base currency depending on the asset. System sometimes gives me warning 'not enough money' when I want to place order. How is this calculated?...
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0 votes
3 answers
119 views

Why do I need Stop-Loss order in Forex?

I am just a beginner in Forex and I just learned that the "Stop Loss" orders are placed by traders. However, I guess without a Stop-Loss we can make benefit in almost any trade. Because, ...
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  • 241
0 votes
1 answer
127 views

Paycheck in a foreign currency: protecting from exchange rates

I receive a recurrent paycheck in a foreign currency, which in my case is USD. Right now, I immediately convert it to EUR, which is the currency I live with. Say I receive recurrent payments of 5000 ...
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How do I hedge currencies when buying foreign bonds?

The majority of my income and savings are in Singapore dollars (SGD). For practical purposes, this is my "base currency". When buying foreign bonds and bond funds denominated in foreign ...
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Is any international (ie. non-U.S.A.) foreign financial securities market tax free or significantly less taxed than USA markets?

Hypothetically, is it possible to buy and sell some kind of financial security (ie. stocks, currency, even crypto) in some foreign market and keep the money there and pay no taxes as high as short-...
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Restarting positions- How to find the best strategy

So, I have a question. The broker where I trade, has this special offer. Namely, for every three trades that I have lost, they return me the smallest loss.. For example, last week I lost 10USD, 11usd ...
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31 votes
7 answers
12k views

Can someone make money by cycling through currencies and exchanges?

I am not a finance expert at all, but I recently got this idea from a conversation with a friend on whether it is possible to make money by starting with a fixed amount of dollars and then try and ...
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2 votes
1 answer
304 views

Why didn't a margin call prevent me from losing more than my initial investment when buying on margin?

I entered a trade with 10 USD and a leverage of 1:100. There was a margin call, and the position was automatically closed. I would like to know how I lost 30 USD when I entered a trade with only 10 ...
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2 votes
2 answers
149 views

If my employer pays me in a currency different from the one I use, is it worth while to buy financial instruments to offset changes forex rates?

Say I live in country A yet my employer pays me in the currency of country B, is it worth while to buy puts on currency B to offset my exposure to that currency? In particular, I live in Canada and I ...
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1 vote
2 answers
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How are borrowings in local currency used to hedge foreign exchange exposure on investments?

The following appears in Jardine Matheson's 2020 annual report's Financial Review section: Treasury Policy The Group manages its exposure to financial risk using a variety of techniques and ...
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1 vote
0 answers
122 views

How do you overcome the boredom (and loneliness) of Forex day trading? [closed]

I have two trading plans which I use to day trade in the Forex market for 2 hours a day (8-10 am UK time). Usually I will have between 2-4 valid trading signals each day. I have made more than 80 ...
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0 votes
1 answer
215 views

When converting CAD to USD on Interactive Brokers Trader Workstation, should the price of USD.CAD be as high or as low as possible?

Please see the orange box in the screen shot from my Interactive Brokers Trader Workstation software. Do I want that price to be as high or low as possible? I'm guessing low, correct? Because USD = ...
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0 votes
2 answers
124 views

Can I lose money on a Forex cross currency trade even if the currency pair goes up in value?

My question applies only to cross currency pairs. As an example, imagine my home currency (the currency I am buying with) is USD, and I intend to buy 5 units of the EUR/GBP currency pair. To keep the ...
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1 vote
0 answers
86 views

Why do stock (and forex) prices change over weekend, when the market is supposed to be closed?

I am checking out Apple's stock on TradingView on a Sunday night and it shows its price fluctuating? How is that possible? Isn't the stock market supposed to be closed on weekends? Same with forex. If ...
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1 vote
2 answers
44 views

Can base currency influence absolute value for quoted currency

I am approaching this question from a Computer Science perspective (Developer, Programming etc.), so apologies if the question is trivial. I have been searching the web for a while, but I am afraid I ...
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5 votes
2 answers
917 views

Why are pair-wise exchange rates not the inverse of each other?

I just went to morningstar.de and had a look at the current exchange rates: I was expecting that (EUR->USD) * (USD->EUR) ≈ 1 Only approximately, because we only have 5 decimals here. But for ...
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4 votes
5 answers
1k views

What are the bounds of the enforced value of "legal tender"? [closed]

Suppose Bob and Alice are both U.S. citizens and Bob lends Alice 100 euros with 105 euros required to be paid back to Bob in exactly one month. A month later, Alice comes back with X amount of ...
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1 vote
0 answers
45 views

Are Money Transfer services better than Bank transfers?

I was planning on moving a chunk of cash from a foreign currency account I have with my bank to a domestic currency account. Same bank, same business, etc - just different currencies. My bank (ANZ NZ ...
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0 votes
1 answer
71 views

What is the relation between inflation on a country and the exchange rate of its currency?

In the interval between 2010 and 2011, American inflation was 3.2% and Chinese inflation was 5.55%. During this year, the pair CNY/USD went from 6.2524 to 6.5758. If an investor would have invested 1,...
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1 vote
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297 views

EURO equivalent of DXY?

The U.S. Dollar Index, sometimes informally referred to as the "Dixie" (https://en.wikipedia.org/wiki/U.S._Dollar_Index) is a nice index value to see the strength of the dollar. I was ...
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0 votes
1 answer
54 views

Difference on long/short on forex currency pair trading and its inverse

Assume there is following information on the pricing of the currency pair Based on the image above, the spread for AUDUSD is lower than USDAUD (0.9 vs 1.6). Assuming I wanted to buy USDAUD, does it ...
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1 vote
1 answer
72 views

Mechanism of sudden bid-ask spread changes

Bid and ask chart are sometimes very different in its shape, like this bid chart and ask chart (USD/JPY, @OANDA platform). At around 7:00AM on its ask chart, ask price ranges between 103.580 to 103....
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