Revaluation Rate

Posted in Finance, Accounting and Economics Terms, Total Reads: 356
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Definition: Revaluation Rate

Revaluation rate is used to calculate the gains or losses made by an currency trader. The rate is calculated for a given time frame i.e for a day. It is calculated as the difference between the closing rates of two days i.e. closing rate of a day minus the closing rate of the previous day.


EXAMPLE

Consider the rate of as 2.64 USD/CAD as a reference point for comparing today's closing rate of 2.65 USD/CAD.

So this difference of 0.01 $ will give the estimate of the gains made by the currency trader. This delta of difference is the amount made (i.e. gain or loss) with respect to a dollar of trading.


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