TRADING GLOSSARY
Currency peg
A currency peg is an exchange-rate arrangement that links a currency's value to another currency or a basket of currencies. Authorities may use currency intervention and monetary policy to maintain the fixed rate or an allowed trading band.
EXAMPLE
Under a hypothetical peg of two domestic currency units per US dollar, authorities intervene when market pressure pushes the exchange rate away from that target.
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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