Guide to Forex Trading

A currency peg is a policy by a nation to set a fixed exchange rate between its currency and one or a series of other currencies. This can stabilize the value of a country’s currency but limits monetary policy. Pegs can also be undermined by market conditions.

Legal tender is something that a country’s law recognizes as money. A country’s currency is legal tender and laws establishing what is legal tender make commerce easier by making it clear what people have to accept as money.

Quid is a nickname for the British Pound Sterling. It is the currency of the United Kingdom (U.K.).

NEER is the weighted average of a currency’s exchange rate with a group of other currencies, usually referred to as a basket of currencies. This is a measure of how strong a currency is on forex markets.

Forex trading robot is the nickname given to automated currency trading. The software used to make these trades buys and sells currencies according to specific algorithms.

A forex hedge is a strategy to help offset the risk of currency fluctuations when investing or doing business. This can be done by using currency futures and swaps, among other methods.

An IRD is the difference between two interest rates between two assets. The IRD is used to compare investments in forex, fixed income, and other markets.