exchange

Multi Commodity Exchange of India Limited (MCX) Multi Commodity Exchange of India Limited (MCX) is an independent and de-mutulized exchange with permanent reorganization from Government of India, having Head Quarter in Mumbai. Key share holders of MCX are Financial Technologies (India)...

Multi Commodity Exchange Whether it’s retiring early, saving for children’s education, paying off a loan or to live a secured and satisfied life everyone has dreams they can achieve by investing their savings. However, the question that arises is that, should one leave his money tucked away...

Abbreviations concerning Commodity Exchange MCX – Multi Commodity Exchange NCDEX – National Commodity and Derivative Exchange NMCE – National Multi commodity Exchange F.D- Fixed deposit Terms and Definitions related to Commodity Market Arbitragers: - Arbitragers are interested in making...

Bombay Stock Exchange Bombay Stock Exchange (BSE) established the CDSL in 1998, which commenced operations on March 22, 1999. CDSL is a public company for profit, and is owned by the BSE, Bank of India, Bank of Baroda, SBI, HDFC Bank, Centurion Bank, and Standard Chartered Bank, Bank of...

FOREIGN EXCHANGE REGULATIONS In addition to tariffs and quota many countries introduce foreign exchange regulations for restricting imports. Under exchange control, countries impose restrictions on the use of foreign exchange earned through exports. If exchange control is to be made...

Fixed exchange rate As the name suggests, under fixed exchange rate system, the value of a currency in terms of another is fixed. These rates are determined by governments or central banks of the respective countries. The fixed exchange rates result from pegging their currencies to either...

1) Gold Bullion Standard: The basis of money remains a fixed weight of gold but the currency in circulation consist of paper notes with the authorities standing ready to convert unlimited amounts of paper currency in to gold and vice-versa, on demand at a fixed conversion ratio. Thus a pound...

Foreign Exchange Market The foreign exchange market is the market in which currencies are brought and sold against each other. It is the largest market in the world. Foreign exchange market is an over the counter market. This means there is no single market place or an organized market...

In a business setting, there is a fundamental difference between making payment in the domestic market and making payment abroad. In a domestic transaction, only one currency is used while in a foreign transaction, two or more currencies maybe used. The foreign exchange market is the market in...

The major participants in the foreign exchange markets are commercial banks; foreign exchange brokers and other authorized dealers, and the monetary authorities. It is necessary to understand that the commercial banks operate at retail level for individual exporters and corporations as well...

1. Value Date: The settlement of a transaction takes place by transfers of deposits between two parties. The day on which these transfers are effected is called the Settlement Date or the Value Date. 2. Spot Rate: When the exchange of currencies takes place on the second working day after...

Instrument Type “Instrument Type” is NCDEX to denote whether the ticker is a futures contract or a spot price being disseminated or an options contract COMDTY – used for commodity spot price dissemination FUTCOM – used for futures on commodity OPTCOM – used for options on futures on...

National Stock Exchange (NSE) The Organization The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, It recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide...

ABOUT BSE: The oldest exchange in Asia and the first exchange in the country to be granted permanent recognition under the Securities Contract Regulation Act, 1956, Bombay Stock Exchange Limited (BSE) has had an interesting rise to prominence over the past 130 years. While the BSE is now...

Managing Foreign Exchange Risk Transaction Exposure- when benefits and costs of a transaction can be affected by exchange rate movements that occur after legal obligation. This can be managed in one of the following ways Go Naked, Buy forward, use options market, or acquire an offsetting...

Exchange Rates Foreign Exchange includes all currencies and special instruments that are used to make payments abroad Exchange rate is the # of units of a currency that is given in exchange for one unit of another currency Types of Exchange Rates Spot Rate - is the exchange rate quoted...

EXCHANGE RATE INDICES NEER TWER REER FEER LERMS MLERMS NEER Nominal Effective Exchange Rate (NEER) NEER index is based on ‘nominal’, i.e. actual, unadjusted exchange rates Index does not take account of inflation TWER Trade-Weighted Exchange Rates (TWER) The index is an...

Factors Effecting Exchange Rates Balance of Payments - A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports and imports, including all financial exports and...

Flexible Exchange Rate System an exchange rate system in which the values of participating currencies are free to change in relation to one another according to market demand and supply for each currency Prices of currency determined by forces of demand and supply Clean Float No official...

Gold Exchange Standard System Oldest system in operation till the beginning of 1st World War (1870-1914) Two types Gold Specie Standard Gold Bullion Standard Gold Exchange Standard System 3 Rules Authorities must fix once-for-all the rate of conversion of the paper money issued...