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Foreign exchange dealer |
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Foreign exchange dealerA firm or individual that buys foreign exchange from one party and then sells it to another party. The dealer makes the difference between the buying and selling prices, or the spread.Foreign exchange dealer Similar MatchesCoffee, Sugar & Cocoa Exchange (CS&CE)Coffee, Sugar & Cocoa Exchange (CS&CE)The New York-based commodity exchange trading futures and options. The CS&CE shares the trading floor at the Commodities Exchange Center. Stock Exchange Automated Quotation (SEAQ) InternationalStock Exchange Automated Quotation (SEAQ) InternationalThe London Stock Exchange's electronic price quotation system for non UK securities. Exchange rate overshootingExchange rate overshootingThe response of an exchange rate to a shock by first moving beyond where it will ultimately settle. Thought to help explain exchange rate volatility, this was first modeled by Dornbusch (1976). Foreign exchangeForeign exchangeCurrencies issued by foreign countries. Exchange traded fundExchange traded fundETFs are a new kind of collective investment fund competing with investment trusts and unit trusts for investors' money.In some ways they are a conventional tracker fund, pooling the cash of a large number of investors and investing it in a basket of shares in companies that make up an index (e.g. members of the FTSE A All-Share).Like unit trusts, ETFs are open ended, which means that new units can be issued in response to demand. The advantage of this is that they trade at a price which is close to the net asset value of the fund (i.e. the value of its investments) - something that cannot be said of investment trusts which are closed funds.But unlike unit trusts, ETFs do not usually have initial charges and their annual management charges are much lower (averaging 0.35%). You will have to pay broking commission, but some ETFs are exempt from Stamp Duty.Another feature of ETFs is that their prices are updated continuously during the trading day to reflect the indexes they track. This is an improvement over unit trusts where prices are only recalculated every 24 hours. So if you buy shares in an ETF at 2 o'clock on Monday the price you pay will be directly related to the NAV at that time.ETFs pay a dividend to their shareholders, which is the sum of all the dividends received from the ETF's investments minus an annual management fee. Typical annual fees are under 0.5% of the fund's value.The UK's first ETF was launched by Barclays Global Investors in 2000 and took 80,000 trades in its first week. It can be held in both PEPs and ISAs and does not attract Stamp Duty.You can buy ETFs through most stockbrokers. Further SuggestionsRate of exchangeForward foreign exchange contract Colombo Stock Exchange National Stock Exchange (NSE) Johannesburg Stock Exchange (JSE) Helsinki Exchanges (HEX) Foreign exchange Banner Exchange Tokyo Stock Exchange (TSE) Foreign exchange market Boston Exchange Automated Communication Order Routing Network (BEACON) Sydney Futures Exchange (SFE) International Petroleum Exchange Foreign exchange Exchange rationing bill of exchange American Stock Exchange (AMEX) Exchange rate exposure New Zealand Stock Exchange Karachi Stock Exchange New York Stock Exchange (NYSE) Amsterdam Exchange (AEX) Exchange Rate Mechanism (ERM) Istanbul Stock Exchange Brussels Stock Exchange (BSE) |
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