Rate

Related Terms

• Forex (FX)

  Forex stands for “foreign exchange” and refers to the buying or selling of one currency in exchange for another. While it is called “foreign” exchange, this is just a relative term. The terms “foreign” and “domestic” are relative to the person using the term. What is foreign to someone is considered domestic to another. “Currency exchange” […]

• Forex Trading

  Forex trading is the simultaneous buying of one currency and selling another. When you trade in the forex market, you buy or sell in currency pairs. As the value of one currency rises or falls relative to another, traders decide to buy or sell currencies to make profits. Retail forex traders participate in the forex market […]

• Neutral Interest Rate

  The neutral interest rate represents the real (inflation-adjusted) short-term interest rate that is consistent with a stable economy operating at its full potential.

• Options

  An option is a financial contract that grants the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price.

• Terminal Rate

  The terminal rate is the interest rate level that the Federal Reserve (“Fed”) believes is consistent with a balanced economy in the long run.