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FOREX-BASICS5 MIN READ

Sort the FX terms that people mix together

Categorize common FX terms by whether they describe quote mechanics, execution cost, exposure risk, or settlement operations.

Sort each FX term into the bucket it mainly belongs to. Use the bucket that best answers: what kind of problem is this term helping us solve? Quote mechanics Execution cost Risk exposure Settlement process Base currency Ask price Bid-ask spread Explicit transfer fee Foreign-currency payable Unhedged amount Value date Trade confirmation

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