Fixed

A fixed exchange rate is a regime applied by a government or central bank that ties the
country's official currency exchange rate to another country's currency or the price of gold. The
purpose of a fixed exchange rate system is to keep a currency's value within a narrow band
Floating
A floating exchange rate is a regime where the currency price of a nation is set by the forex
market based on supply and demand relative to other currencies. This is in contrast to a fixed
exchange rate, in which the government entirely or predominantly determines the rate
From an international business perspective, a floating rate system is more attractive for being
more prone to stability in the exchange rate that is determined between supply and demand,
which reduces risk for any intervention in a world of high mobility of capital, and trade. In
contrast, a fixed system influences trade and investment by risks of depreciation of currencies,
which generate instability that could influence negatively sales, revenues, and profitability

If a foreign currency appreciates, it means that the price of a laptop will also increase because
my company buys a laptop in rupees from an American supplier, dad is the action I need to take
Sign a fixed-term futures contract In this case, I would have an agreement with my supplier that
if I buy laptops for 1 hole, so the price will not change in case of appreciation of the dollar,If I do
not sign this contract, I may have to pay much more than my expected value due to the
depreciation of the rupee.