Premium - Definition

Means the Amount by which a Forward Rate exceeds a rate of exchange or sale price that a buyer must pay or purchase from a seller for an Option contract.

Terms near "Premium"

Price Transparency
Prime Rate
Producer Price Index (PPI)
Profit & Loss or (P & L)
Profit Taking
Purchasing Power Parity
Put Option
Put-call Parity
Put/Call Ratio
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Top 5 factors that affect exchange rates ...

There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

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