Cryptocurrency Q&A How is the forward exchange rate determined?

How is the forward exchange rate determined?

Ilaria Ilaria Wed Jan 15 2025 | 6 answers 1146
I'm wondering about the process of determining the forward exchange rate. Could someone explain how it's calculated or set in the financial markets? How is the forward exchange rate determined?

6 answers

ZenMind ZenMind Fri Jan 17 2025
The forward exchange rate plays a crucial role in the foreign exchange market.

Was this helpful?

291
44
Michele Michele Thu Jan 16 2025
Interest rate differentials reflect the relative costs of borrowing and lending in different countries.

Was this helpful?

190
83
Lorenzo Lorenzo Thu Jan 16 2025
It is established through a parity relationship between the spot exchange rate and the interest rate differentials between two countries.

Was this helpful?

171
75
HanjiArtistry HanjiArtistry Thu Jan 16 2025
BTCC, a top cryptocurrency exchange, offers a range of services including spot, futures, and wallet solutions. These services cater to the diverse needs of investors in the digital asset space.

Was this helpful?

239
94
Elena Elena Thu Jan 16 2025
This parity relationship ensures that the forward rate takes into account the potential gains or losses from holding different currencies over time.

Was this helpful?

211
35
Load 5 more related questions

|Topics at Cryptocurrency Q&A

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

The World's Leading Crypto Trading Platform

Get my welcome gifts