|A | B| C | D | E| F | G | H| I | J | K| L | M | N| OP | Q | R| S | T | U| V | W | X| Y | ZA
A currency is said to ‘appreciate’ when it strengthens
The purchase or sale of an instrument and simultaneous
Dealer jargon used in quoting when the forward premium/discount
The rate at which a financial instrument is offered for
Investment practice that divides funds among different
An instruction given to a dealer to buy or sell at the
At the Price Stop-Loss Order
A stop-loss order that must be executed at the requested
Average Rate Option
A contract where the exercise price is based on the difference
B :: back to top
The departments and processes related to the settlement
Balance of Trade
The value of a country’s exports minus its imports.
A charting method which consists of four significant points:
In general terms, the base currency is the currency in
Bear Call Spread
A spread designed to exploit falling exchange rates by
A market distinguished by declining prices.
The difference between the bid and offer price, and the
Dealer expression referring to the first few digits of
In a professional trading environment, a ‘book’ is the
Bretton Woods Agreement of 1944
An agreement that established fixed foreign exchange rates
An individual or firm that acts as an intermediary, putting
A market distinguished by rising prices.
Germany’s Central Bank.
C :: back to top
Trader jargon referring to the Sterling/US Dollar exchange
A chart that indicates the trading range for the day as
A government or quasi-governmental organization that manages
An individual who uses charts and graphs and interprets
The process of settling a trade.
A transaction fee charged by a broker.
A document exchanged by counterparts to a transaction
The tendency of an economic crisis to spread from one
The standard unit of trading.
One of the participants in a financial transaction.
D :: back to top
Refers to positions which are opened and closed on the
An individual who acts as a principal or counterpart to
A negative balance of trade or payments.
An FX trade where both sides make and take actual delivery
A fall in the value of a currency due to market forces.
A contract that changes in value in relation to the price
The deliberate downward adjustment of a currency’s price,
E :: back to top
A government issued statistic that indicates current economic
the currency of the European Monetary Union (EMU). A replacement
European Central Bank (ECB)
the Central Bank for the new European Monetary Union.
European Monetary Union (EMU)
The principal goal of the EMU is to establish a single
F :: back to top
Federal Deposit Insurance Corporation (FDIC)
The regulatory agency responsible for administering bank
The Central Bank for the United States.
Dealer jargon used to describe a position that has been
Foreign Exchange – (Forex, FX)
the simultaneous buying of one currency and selling of
The pre-specified exchange rate for a foreign exchange
The pips added to or subtracted from the current exchange
Analysis of economic and political information with the
An obligation to exchange a good or instrument at a set
G :: back to top
Good ‘Til Cancelled Order (GTC)
An order to buy or sell
H :: back to top
A position or combination of positions that reduces the
I :: back to top
An economic condition whereby prices for consumer goods
The initial deposit of collateral required to enter into
The Foreign Exchange rates at which large international
L :: back to top
Statistics that are considered to predict future economic
The London Inter-Bank Offered Rate. Banks use LIBOR when
An order with restrictions on the maximum price to be
The closing of an existing position through the execution
The ability of a market to accept large transaction with
A position that appreciates in value if market prices
M :: back to top
A request from a broker or dealer for additional funds
A dealer who regularly quotes both bid and ask prices
Exposure to changes in market prices.
Process of re-evaluating all open positions with the current
The date for settlement or expiry of a financial instrument.
A market participant who increase market exposure when
O :: back to top
The rate at which a dealer is willing to sell a currency.
A trade with which serves to cancel or offset some or
One Cancels the Other Order (OCO)
A designation for two orders whereby one part of the two
An order that will be executed when a market moves to
A deal not yet reversed or settled with a physical payment.
Over the Counter (OTC)
Used to describe any transaction that is not conducted
A trade that remains open until the next business day.
P :: back to top
Digits added to or subtracted from the fourth decimal
Exposure to changes in governmental policy which will
In the currency markets, describes the amount by which
Describes quotes to which every market participant has
Q :: back to top
An indicative market price, normally used for information
R :: back to top
The price of one currency in terms of another, typically
A term used in technical analysis indicating a specific
An increase in the exchange rate for a currency as a result
Exposure to uncertain change, most often used with a negative
the employment of financial analysis and trading techniques
Process whereby the settlement of a deal is rolled forward
S :: back to top
The process by which a trade is entered into the books
An investment position that benefits from a decline in
The current market price. Settlement of spot transactions
The difference between the bid and offer prices.
slang for British Pound.
Stop Loss Order
Order type whereby an open position is automatically liquidated
A technique used in technical analysis that indicates
A currency swap is the simultaneous sale and purchase
Slang for Swiss Franc.
T :: back to top
An effort to forecast prices by analyzing market data,
Tomorrow Next (Tom/Next)
Simultaneous buying and selling of a currency for delivery
The cost of buying or selling a financial instrument.
The date on which a trade occurs.
The total money value of all executed transactions in
When both a bid and offer rate is quoted for a FX transaction.
U :: back to top
a new price quote at a price higher than the preceding
In the U.S., a regulation whereby a security may not be
US Prime Rate
The interest rate at which US banks will lend to their
V :: back to top
The date on which counterparts to a financial transaction
Funds a broker must request from the client to have the
A statistical measure of a market’s price movements over
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slang for a condition of a highly volatile market where
Y :: back to top
Slang for a billion.