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Home Categories Guide to Forex Trading Countertrade provides a mechanism for countries with limited access to liquidity to exchange goods and services with other countries. A currency carry trade is a strategy in which a high-yielding currency finances the trade of a low-yielding currency. Currency exchange is a business that allows customers to exchange one currency for another. A peg is a policy in which a national government sets a certain fixed exchange rate for its currency against a foreign currency or a basket of currencies. A currency swap involves the exchange of interest - and sometimes principal - in one currency for the same thing in another currency. The name defines the monetary unit in which assets, securities and transactions are valued. Direct quotation is a quotation of a currency pair in which a foreign currency is expressed per unit of national currency. ECN Brokers facilitate transactions that take place on Electronic Communications Networks (ECNs). The Euro is the official currency of the European Union (EU), adopted by 19 of the 27 EU member states. Euro Overnight Index Average (EONIA) is the average base overnight rate at which European banks lend to each other in euros.