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Forex contracts involve the right to buy or sell a certain amount of a foreign currency at a fixed price in U. It is extremely rare that individual traders actually see the foreign currency.

It is the ratio of the number of units of a given country's currency necessary to buy a market basket of goods in the other country, after acquiring the other country's currency in the foreign exchange market, to the number of units of the given country's currency that would be necessary to buy that market basket directly in the given country.

Any company operating globally must deal in foreign currencies.

It has to pay suppliers in other countries with a currency different from its home country’s currency.

Even if a company expects to be paid in its own currency, it must assess the risk that the buyer may not be able to pay the full amount due to currency fluctuations.

XE Currency Converter - Live Rates com/currencyconverter Calculate live currency and foreign exchange rates with this free currency converter.

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