Uncovered interest rate parity

An uncovered interest rate parity is a condition where the interest rates between two countries is the same as the change in currency rates between the two. This scenario is often sought after by traders looking to take advantage on the spread of the interest rates between the two countries if the currency rate does not eventually match it which results in a profit if properly done.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use