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Net Interest Rate Differential

The difference in interest rates from the countries of two different currencies. For example, if the spot next rate for the Euro is 3.25% and the spot/next rate in the US is 1.75%, the interest differential is 1.50% (3.25% - 1.75% = 1.50%).

Net Position

The amount of currency bought or sold which have not yet been offset by opposite transactions.

Netting

The method of settling under which only the differences in the traded currencies are settled at the close.

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If you do have a moment, please take a look at my new site on: Forex Trading .

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If you do have a moment, please take a look at my new site on: Forex Trading .

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