FX Parity Relationships

FX Parity Relationships groups market-structure pages that were previously direct children of Spot Forward And Parity Markets. FX market terms for covered interest parity and interest-rate parity relationships.

Use this subsection when the reader needs market mechanics, quote language, venue infrastructure, listing status, or execution context rather than a broad investing overview.

In this section

• Covered Interest Parity
  Covered Interest Parity (CIP) is a fundamental concept in finance that explains the relationship between interest rates and exchange rates, ensuring the absence of arbitrage opportunities.
• Interest Rate Parity
  Interest Rate Parity (IRP) is a fundamental theory in finance that explains how the difference in interest rates between two countries is connected to the expected change in their exchange rates. It is crucial for foreign exchange markets and international investors.