As a price maker, you set the rates at which you buy and sell currencies. The 6-month EUR/USD swap rate you've provided is 25/26. This means you're willing to buy Euros and sell US dollars at a rate of 25, and sell Euros and buy US dollars at a rate of 26.

For a corporate customer looking to buy and sell USD spot versus 6 months, the rates would be as follows:

1. If the corporate customer wants to buy USD (sell EUR), they would do so at your bid rate, which is 25.
2. If the corporate customer wants to sell USD (buy EUR), they would do so at your ask rate, which is 26.

These rates are indicative and can change based on market conditions. It's also important to note that these rates may include a spread, which is the difference between the bid and the ask rate, and serves as compensation for the price maker.

Question

As a price maker, you set the rates at which you buy and sell currencies. The 6-month EUR/USD swap rate you've provided is 25/26. This means you're willing to buy Euros and sell US dollars at a rate of 25, and sell Euros and buy US dollars at a rate of 26.

For a corporate customer looking to buy and sell USD spot versus 6 months, the rates would be as follows:

1. If the corporate customer wants to buy USD (sell EUR), they would do so at your bid rate, which is 25.
2. If the corporate customer wants to sell USD (buy EUR), they would do so at your ask rate, which is 26.

These rates are indicative and can change based on market conditions. It's also important to note that these rates may include a spread, which is the difference between the bid and the ask rate, and serves as compensation for the price maker.

Knowee AI · Accepted Answer

As a price maker, you set the rates at which you buy and sell currencies. The 6-month EUR/USD swap rate you've provided is 25/26. This means you're willing to buy Euros and sell US dollars at a rate of 25, and sell Euros and buy US dollars at a rate of 26.

For a corporate customer looking to buy and sell USD spot versus 6 months, the rates would be as follows:

1. If the corporate customer wants to buy USD (sell EUR), they would do so at your bid rate, which is 25.
2. If the corporate customer wants to sell USD (buy EUR), they would do so at your ask rate, which is 26.

These rates are indicative and can change based on market conditions. It's also important to note that these rates may include a spread, which is the difference between the bid and the ask rate, and serves as compensation for the price maker.

You are a price maker. Your 6-month EUR/USD swap rate is 25/26. At what rate would a corporate customer buy and sell USD spot versus 6 months?

Question

You are a price maker. Your 6-month EUR/USD swap rate is 25/26. At what rate would a corporate customer buy and sell USD spot versus 6 months?

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