It means variance of the returns and the possibility that the actual return might not be in line with the expected returns. The difference between the highest and lowest price of a future recorded during a given trading session. The price of one currency in terms of another. It has the same meaning as the term parities. Reserves Funds held against future contingencies, normally a combination of convertible foreign currency, gold, and SDRs.
Official reserves are to ensure that a government can meet near term obligations.
They are an asset in the balance of payments. A currency held by a central bank on a permanent basis as a store of international liquidity, these are normally Dollar , Deutschemark, and sterling. Revaluation Increase in the exchange rate of a currency as a result of official action. Resistance A price level at which the selling is expected to take place. Settlement Actual physical exchange of one currency for another.