The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates. |||Banks and financial institutions closely monitor aggregate risk in order to minimize their exposure to adverse financial developments - such as a credit crunch or even insolvency - arising at a counterparty or client. This is achieved through position limits that stipulate the maximum dollar amount of open transactions that can be entered into for spot and forward currency contracts at any point in time. Aggregate risk limits will generally be larger for long-standing counterparties and clients with sound credit ratings, and will be lower for clients who are either new or have lower credit ratings.
An interface or "go-between" that enables a software program to interact with other software. In the context of forex trading, an API refers to the interface or platform that enables your platform to connect with the market. APIs have multiple features that facilitate information sharing, including real-time forex price quotations, trade execution and order and trade /confirm/iations. |||Proprietary APIs are offered by almost every major online forex brokerage. Because the fast-paced nature of forex trading makes automated trading preferable to manual trading for most traders, a reliable API is an important differentiator for a forex brokerage to ensure stable operation and execution of trades.
The currency abbreviation, or currency symbol, for the Argentinian peso (ARP), one of the previously used currencies in Argentina. The Argentinian peso is often presented with the symbol "$a" and was used as a curency from 1983 to 1985. |||The Argentinian peso was first seen in 1983 when it replaced the Peso Ley at a conversion of 1 peso to 10,000 peso ley. It was used soon after democracy arrived but lost its purchasing power after several devaluations. Another name for the currency is peso argentino. The Argentinian peso was replaced by the austral in 1985.
An order to buy or sell a futures contract at the best available price upon entrance into the exchange for execution. |||This is identical to a market order in the securities markets. When an investor places an order at the market, he or she is willing to forgo price discrimination for speediness of entry to or exit from a futures contract.
Also called the "Asian Contagion", this was a series of currency devaluations and other events that spread through many Asian markets beginning in the summer of 1997. The currency markets first failed in Thailand as the result of the government's decision to no longer peg the local currency to the U.S. dollar. Currency declines spread rapidly throughout South Asia, in turn causing stock market declines, reduced import revenues and even government upheaval. The Asian Financial Crisis was stemmed somewhat by financial intervention from the International Monetary Fund and the World Bank. However, market declines were also felt in the United States, Europe and Russia as the Asian economies slumped. |||As a result of the crisis, many nations adopted protectionist measures to ensure the stability of their own currency. Often this led to heavy buying of U.S. Treasuries, which are used as a global investment by most of the world's sovereignties.The Asian crisis led to some needed financial and government reforms in countries like Thailand, South Korea, Japan and Indonesia. It also serves as a valuable case study for economists who try to understand the interwoven markets of today, especially as it relates to currency trading and national accounts management.
A proposed basket of Asian currencies, similar to the European Currency Unit, which was the precursor of the Euro. The Asian Development Bank is responsible for exploring the feasibility and construction of the basket. |||The main obstacles to the creation of an Asian Currency Unit are the choice of currencies that would be included, the severe misalignments between the various regional currencies and the economic turmoil of 2007-2008. There have been a number of financial instruments that use baskets of Asian currencies, but these are individually constructed and are not sponsored or used as a means of exchange in the countries represented. The most well-known investment vehicles include exchange traded notes (ETNs) and structured notes, whose returns are based on Asian currency baskets.
The currency abbreviation, or currency symbol, for the Argentinian Nuevo peso (ARS), the currency for Argentina. The Argentinian Nuevo peso is made up of 100 centavos and is often presented with the symbol "$," or sometimes "N$". The Argentinian Nuevo peso uses the same currency symbol as the U.S. so to avoid confusion Argentinians use US$ or U$A when referring to the U.S. dollar. |||The Argentinian Nuevo peso was first seen in 1992 when it replaced the austral at a conversion of 1 peso to 10,000 australes. Other names for the currency include peso convertible, and nuevo peso convertible. The Argentinian Nuevo peso was pegged to the U.S. dollar at 1 peso to one dollar form 1992 to 2001. In 2002 the peso floated and devalued about 75% which helped increase competitiveness in exports.
Slang term that is used to refer to the Australian dollar. |||Similar to how the U.S. dollar is sometimes called the greenback or the Canadian dollar is called the loonie, the Australian dollar is sometimes called the Aussie to distinguish it from all the other dollars. It is also denoted as A$ or AU$.