TRADING GLOSSARY
Currency intervention
Currency intervention occurs when a central bank or government buys or sells currencies to influence an exchange rate. Authorities may intervene to address disorderly trading or support an exchange-rate policy, but the intended effect is not guaranteed.
EXAMPLE
In an illustrative scenario, a central bank sells foreign-currency reserves and buys its domestic currency to counter rapid weakening in the exchange rate.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure