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Pegging

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Pegging
Effecting transactions in an instrument underlying an option to prevent a decline in the price of the instrument shortly prior to the option's expiration date so that previously written put options will expire worthless, ...

 


Pegging - When a country fixes the exchange rate to another country's currency, usually to achieve price stability. Most countries that peg their currencies do so against the US dollar or the Euro.

Pegging
Fixing the exchange rate of the local currency with that of a foreign currency to stabilize the currency.

Pegging
Making transactions in a security, currency, or commodity in order to stabilize or target its value through market intervention.
Penalty clause
A clause found in contract agreements that provides for a penalty in the event of default.

Pegging - A form of price stabilization; typically used to stabilize a country's currency by making it fixed to the exchange rate with another country.

Pegging: Effecting commodity transactions to prevent a decline in the price of the commodity so that previously written put options will expire worthless, thus protecting premiums previously received.

Pegging U.S. Currencies to the U.S. Dollar
By pegging (or linking) these currencies directly to the dollar, the value of the pegged currencies remained dependent on the value of the dollar.

PEG ratio A stock's price to earnings ratio divided by its year-over-year earnings growth rate pegging The holding of prices or exchange rates over some time period. PEN The ISO currency code for the Peruvian Sol.

The bid, also called "pegging," is permitted under Securities and Exchange Commission Rule 10b-7; otherwise the practice is prohibited. (See bid, new issue, syndicate manager, underwriter) pink sheets ...

By pegging the currency, the central bank of the nation is declaring its intention to limit its expansion of the money supply by adhering to policies of the other, more credible central bank.

Pegging the currency by comparing the current rate of exchange with several different prominent and desirable currencies can provide a lot of insight into all sorts of important aspects.

When a Central Bank abandons the pegging of its currency to a fixed rate of exchange, resulting in a significant drop in its currency's value (example: Argentine Peso 2002).

Thus, un-pegging it (partially; let's not kid ourselves that it will float freely anytime in the near future) reduces this risk, even while it means that the renminbi-to-dollar exchange ratio becomes less favorable for chinese exporter companies, ...

In some cases, an economy may attempt to increase confidence in the local currency by pegging it against a hard currency, as is this case with the Hong Kong Dollar, the Bosnian konvertibilna marka or the Chinese Renminbi.

Some ECNs may offer additional features to subscribers such as negotiation, reserve size, and pegging, ...

(1) Foreign exchange dealers' slang for your price is the correct market price.(2) Official rates in terms of SDR or other pegging currency.
Parities:
The value of one currency in terms of another.

Most economists tend to be "behind the curve" when it comes to pegging economic conditions and market moves. Traders are forced to be right out there on the cutting edge of market trends and trend changes. (And yes, that "edge" can be very sharp!) ...

underlying an option shortly before the option's expiration date to depress or prevent a rise in the price of the instrument so that previously written call options will expire worthless, thus protecting premiums previously received. See Pegging.

When the foreign exchange crisis hit in 1993, the EMS expanded their intervention rates to 15 percent. When currencies neared the maximum values allowed, semi-pegging would minimize them.

The Bretton Woods Accord was established to create a stable environment by which global economies could restore themselves. The Bretton Woods Accord established the pegging of currencies and the International Monetary Fund (IMF) in hope of ...

See also: Exchange, Market, Stock, Trading, Currency

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