Interest rate parity and Online: Difference between pages

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This theory describes the expected relationship between [[Spot rate|spot]] and [[Forward forward rate|forward forward exchange rates]], and the [[Interest rate|interest rates]] in the related currency pair.
In the context of payment and settlement systems, this term may refer to the transmission of transfer instructions by users through such electronic means as computer-to-computer interfaces or electronic terminals, which are entered into a transfer processing system by automated means.


Under efficient market conditions the interest rate parity theory predicts that the forward FX rate (available in the market today) should be equal to the spot FX rate, adjusted for the difference in interest rates between the currency pair over the relevant period.
 
2.
 
The term may also refer to the storage of data by a transfer processing system on a computer database so that the user has direct access to the data (frequently in real time) through input/output devices such as terminals.
 
 
3.
 
More generally, connected to another computer or electronic terminal. 
 
For example, connected to the internet.
 
 
4. ''Retail''.
 
Retail offerings to consumers via the internet, rather than in a physical shop.




== See also ==
== See also ==
* [[CertFMM]]
* [[Data]]
* [[Covered interest arbitrage]]
* [[Database]]
* [[Efficient market hypothesis]]
* [[Offline]]
* [[Foreign exchange]]
* [[Omnichannel]]
* [[Forward forward rate]]
* [[Four way equivalence model]]
* [[Interest rate]]
* [[Spot rate]]


[[Category:Manage_risks]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Latest revision as of 12:19, 13 July 2022

1.

In the context of payment and settlement systems, this term may refer to the transmission of transfer instructions by users through such electronic means as computer-to-computer interfaces or electronic terminals, which are entered into a transfer processing system by automated means.


2.

The term may also refer to the storage of data by a transfer processing system on a computer database so that the user has direct access to the data (frequently in real time) through input/output devices such as terminals.


3.

More generally, connected to another computer or electronic terminal.

For example, connected to the internet.


4. Retail.

Retail offerings to consumers via the internet, rather than in a physical shop.


See also