Abstract
Perhaps the simplest of all transactions in theory, foreign exchange (FX) is simply the buying and selling of other currencies. One could imagine it to be a risk-free exercise. If I have 1,400 US dollars, and a Euro costs $1.40, I could purchase 1,000 Euros. Where is the risk in that? The Euros won’t disappear, and I’ve spent the dollars. I am, in fact, immune from financial risk.
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© 2013 Andrew Sutherland and Jason Court
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Sutherland, A., Court, J. (2013). Foreign Exchange. In: The Front Office Manual. Global Financial Markets. Palgrave Macmillan, London. https://doi.org/10.1057/9781137030696_6
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DOI: https://doi.org/10.1057/9781137030696_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-44055-9
Online ISBN: 978-1-137-03069-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)