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Direct Quote
A currency exchange rate quoted as the domestic currency per unit of the foreign currency.
Exchange Rate Risk
The potential for investors or companies to experience financial loss due to fluctuations in the exchange rate between two currencies.
Pledging
Using assets as collateral to secure a loan, where the assets remain in the borrower's possession but the lender holds a claim against them.
Indirect Quote
A foreign exchange rate quoted as the foreign currency per unit of the home currency, the opposite of a direct quote.
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