103 votes
Accepted

Are all current world currencies 'decimal'?

The word you're looking for is not "metric" but "decimal". Pretty much all currencies are decimal these days except for currencies that have divisions where the sub-unit is no longer used as it's ...
Robert Longson's user avatar
99 votes

How can I fairly give the option to be paid in Bitcoin?

When you decide to accept multiple currencies as payment, you need to decide what the price will be for each currency. That price really needs to stay fixed between the invoice date and the due date. ...
Ben Miller's user avatar
  • 116k
81 votes
Accepted

Why do financial institutions charge so much to convert currency?

Mainly because they can. Yes, there is a cost for banks to execute such transactions, and yes, there is a cost to cover the implied risks, but it is far from 3 or 4%. There are banks that charge a ...
Aganju's user avatar
  • 37.7k
74 votes
Accepted

The Venezuela Stock Market Crashed 99.90% on March 15th, 2021. What happened and why?

Not a crash, an adjustment. Because of the insane inflation, they have adjusted it periodically by dividing by 1000. Last one was March 2021. https://en.wikipedia.org/wiki/%C3%8Dndice_Burs%C3%...
Mattman944's user avatar
  • 1,718
68 votes

Can someone make money by cycling through currencies and exchanges?

I recently got this idea from ... You're not the first. (Or the 8000th.) Is there a word for it? Arbitrage (pronounced in French) is "the simultaneous purchase and sale of the same asset in ...
RonJohn's user avatar
  • 50.7k
56 votes

Can someone make money by cycling through currencies and exchanges?

An example should be something like this: $10 ⟶ ¥10000 ⟶ €5 ⟶ $12 (profit) This is called triangular arbitrage. The concept is simple and well-known. The process is not risk-free. There are many ...
Flux's user avatar
  • 17k
44 votes

Why do financial institutions charge so much to convert currency?

All institutions, financial or otherwise, seek to maximize profits. In a free market, each bank would price its services to be competitive with the current state of the market. Since the currency ...
dotancohen's user avatar
41 votes
Accepted

Do I have a right to cancel a purchase of foreign currency in the UK?

The Financial Services (Distance Marketing) Regulations 2004 say in Section 11: Subject to paragraphs (2) and (3), regulation 9 does not confer on a consumer a right to cancel a distance contract ...
Mike Scott's user avatar
  • 23.5k
40 votes

Maker taker fees - can somebody explain in plain english?

Not sure why @Brick's answer was voted down; let me try to state it more precisely. maker Type 1 (seller): You tell the exchange that you want to sell at price P, but P is higher than the highest ...
dg99's user avatar
  • 6,037
38 votes
Accepted

What is the difference between these two S&P 500 ETF?

One is priced in US dollars and the other is priced in euro. The euro has appreciated against the US dollar over the past three years, hence the lower return in euro than in dollars.
Mike Scott's user avatar
  • 23.5k
32 votes
Accepted

How can I fairly give the option to be paid in Bitcoin?

I would not hand out a BTC address and hope the exchange rate stays relatively stable until the client can pay so that everything stays fair. Rather, you could include a link to a bitcoin payment page ...
GrandmasterB's user avatar
31 votes

Why do financial institutions charge so much to convert currency?

Why do these fees exist? From a Banks point of view, they are operating in Currency A; Currency B is a commodity [similar to Oil, Grains, Goods, etc]. So they will only buy if they can sell it at a ...
Dheer's user avatar
  • 57.1k
31 votes
Accepted

How exactly are exchange rates determined?

Currencies are indeed "actually" traded basically on what is called the "Interbank Market" Here's a quick read on that: https://en.wikipedia.org/wiki/Foreign_exchange_market Let ...
Fattie's user avatar
  • 13.8k
31 votes

Are all current world currencies 'decimal'?

The Wikipedia article Non-decimal currency explains the situation in full: Today, only two countries have non-decimal currencies: Mauritania, where 1 ouguiya = 5 khoums, and Madagascar, where 1 ...
CJ Dennis's user avatar
  • 491
29 votes

Why are currency forwards needed?

Can't I achieve the exact same effect and outcome by exchanging currency now and put that amount of USD in a bank account to gain some interest, then make the payment from one year from now? Sure, ...
D Stanley's user avatar
  • 135k
29 votes

How can I fairly give the option to be paid in Bitcoin?

If you're a big company that accepts payment in one currency but has expenses in another (i.e. you're building widgets in Mexico where you pay for everything in pesos and selling widgets in America ...
Justin Cave's user avatar
  • 27.3k
22 votes

Can someone make money by cycling through currencies and exchanges?

One of my teachers (established engineer doing his Ph.D. in older age teaching us) at the university made a solid amount of money designing special hardware, one of the uses of which was to trade on ...
mishan's user avatar
  • 320
19 votes

Can you borrow foreign currency from local banks?

It depends on the country-- there is no general answer. In some countries, it is common for loans to be available in the local currency or in some other currency. In others it is not. In Canada ...
Justin Cave's user avatar
  • 27.3k
17 votes

What is the difference between these two S&P 500 ETF?

I understand that they are different financial products, exchanged on different markets with different currencies. You're right, that's the difference. One is VOO, the other is VOO priced in euros ...
quid's user avatar
  • 49k
16 votes
Accepted

Why does renminbi have three currency units?

Yes, "fen" (分) is 0.01 yuan and is equivalent to "cent", and "jiao" (角) or "mao" (毛) is 0.1 yuan and is equivalent to "dime" in USD/CAD. I guess whether something is a "unit" relates to its ...
user102008's user avatar
  • 17.2k
15 votes
Accepted

Which risk did I take winning this much?

If you didn't have a stop loss set (or trailing stop loss) then an equally random spike in the other direction could have obliterated your account and put you in debt to the broker, depending on the ...
CQM's user avatar
  • 20.2k
15 votes

Why do financial institutions charge so much to convert currency?

In my experience working at a currency exchange money service business in the US: Flat fees are the "because we can" fee on average. These can be waived on certain dollar values at some banks or MSBs,...
CKM's user avatar
  • 1,218
13 votes

Maker taker fees - can somebody explain in plain english?

As you are asking specifically for Kraken, here is what I found: What is ​Maker vs Taker? A trade gets the ​taker​ fee if the trade order is matched immediately against an order already on ...
alexandrek's user avatar
13 votes
Accepted

Generic name for the smallest unit of currency?

I think the term you are looking for is fractional monetary unit. Monetary unit refers to the standard base unit of currency, such as the dollar. The fractional monetary unit is a unit of currency ...
Ben Miller's user avatar
  • 116k
13 votes

How invisible hand adjusts stock prices if company is listed on multiple exchanges, under multiple currencies, and one of the currencies plunges?

It doesn’t Dual-listed companies are more complex than you think. They are not a single company listed on two exchanges, they are two separate companies that have claims of the cash flow of the same ...
Dale M's user avatar
  • 3,200
12 votes

Investing in Cryptocurrencies

How does one invest in cryptocurrencies? It is not a settled principle that dealing in crypto currencies is investment. Would it be like investing in other stocks (say Google, Microsoft), No. ...
Dheer's user avatar
  • 57.1k
12 votes

How exactly are exchange rates determined?

Here's a very simple way to determine the exchange rate between dollars and euros, assuming you have a few dollars: Go from place to place and ask them how many euros they'll give you for your ...
David Schwartz's user avatar
12 votes

How can I fairly give the option to be paid in Bitcoin?

There are two options that I am aware of for multi-currency invoicing, and you should always specify what the system will be in the initial contract that gives rise to the invoice(s). Option 1: ...
Vicky's user avatar
  • 24k
11 votes

USD to CAD Vs CAD to USD

USDCAD: 1.35206 as a %, equals 1.35206 / 1 = 135% CADUSD: .73988 as a %, equals 1 / .73988 = 135% [another way to say this is that 1 USD equals 135% of 1 CAD, or that 1 CAD equals 73.9% of 1 USD] It ...
Grade 'Eh' Bacon's user avatar

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