A systematic record of transaction of goods and services owed by one person to another.
A forex trader dealing on a cost that can be obtained in the Forex market.
The quoted price at which a currency pair or security is accessible for sale. This is also known as the 'offer', 'ask price', and 'ask rate'.
The quoted price at which a currency pair or security is offered for sale.
This the rate at which a financial instrument or currency is offered for sale.
Assets are essentially anything of value, which an organization owns. Any item having commercial or exchange value can also be called as an asset.
An increase in the value of currency rate in response to market demand.
The purchase of an instrument and concurrent taking of an equal and turn around position in a related market.
Dealer jargon used in quoting when the forward premium is near parity.
An increase in the value of currency rate in response to market demand. Investment practice that splits funds among diverse Fx-markets to accomplish diversification for
The rate at which a central bank is prepared to lend money to its domestic banking system.
The office location/department where the financial transaction processing takes place.
In common terms, the base currency is the currency in which an investor maintains its book (transaction) of accounts. In the forex markets, the US Dollar is usually considered the "base" currency for quotes that is the quotes are expressed as a unit of US$1 per the other currency quoted in the pair. The primary exceptions of this rule are the British Pound (GBP), the Euro (EUR) and the Australian Dollar (AUD).
An extensive period of general price decline in an individual asset, security or a market, in other words it is a market distinguished by declining prices.
The quoted price at which an investor can place an order to buy a currency pair.
It is point difference between the Ask (offer) and Bid price, and most widely used measure of market liquidity.
Expression refers to the first few digits of a foreign exchange rate or price. These digits hardly change in normal market fluctuations, and hence are omitted in dealer quotes, particularly in times of high market activity.
An individual or firm that acts as a mediator, putting together buyers and sellers for a fee or commission.
A market in which prices turn down sharply against a background of widespread pessimism.
An order to execute a transaction at a specified price or lower.
A process of buying a currency pair where a client pays you cash for part of the overall value of the position.
Germany's Central Bank.
A record of all transactions made by one specific country with another during a certain period of time. It compares the value of economic transactions between one country and all other countries. This includes trade balance, foreign investments, and as well as investments by foreigners.
The value of a country's exports minus its imports, in other words it is a net flow of goods (exports minus its imports) between two countries.
Dealer expression referring to the first few digits of an exchange rate.
A 'book' is the summary of a forex trader's or desks total positions.
An agreement that recognized fixed foreign exchange rates for major currencies.
Someone who believes the prices/market will decline.
Someone who believes the prices/market is going to rise. A bull market is a market distinguished by rising prices.
A term that is used in the forex market for the US Dollar/British Pound rate.
The overnight inter-bank interest rate.
Markets in which capitals (stocks, bonds, etc.) are traded; usually for medium or long term investing.
A market for buying and selling of physical currencies.
Without getting special approval from the suitable central bank, this currency could be freely exchanged for other currencies or gold.
An exchange rate between two currencies, created from the entity exchange rates of the two currencies.
The risk that shifts in foreign exchange rates may destabilize the overseas investments.
Bond which consigns two counter-parties to switch over streams of interest payments in different currencies for an agreed period of time.
Option contract that gives the right for buying or selling a currency with another currency at a particular exchange rate during a specified period.
OTC Option to enter into a currency swap contract.
OTC Option; long-dated currency option
OTC Option to enter into a currency swap contract.
A bank, being administered by a national government regulates the behavior of financial institutions within its borders and which holds out monetary policies.
A bank, being administered by a national government regulates the behavior of financial institutions within its borders and which holds out monetary policies.
The process of selling or buying a foreign exchange position resulting in the liquidation of the position.
The rate at which a position can be closed at the end of the day based on the market price.
The fee, which a broker might charge to clients for dealing on their behalf.
Written acknowledgment of a trade, listing significant details such as the date, the size of the transaction, the commission, the price, and the sum of money involved.
The foreign banks representative who recurrently performs services for a bank which has no branch in the pertinent centre.
A participant in a financial deal.
(1) To take out a onward foreign exchange contract. (2) To close out a short arrangement by buying currency or securities which have been sold.
The two currencies in a foreign exchange transaction. Ex: "EUR/USD"
The progression of settling a trade.
The inclination of an economic crisis to spread from one market to another.
A transaction fee charged by a broker.
A document exchanged by counterparts to a transaction, which states the terms of said transaction.
The typical unit of trading.
The risk related with government intervention (does not carry central bank intervention). Examples are legal and political events for example war, or civil unrest.
It is a form of money used as a unit of exchange within a country.
Refers to opening and closing the same spots within a day's trading.
A variable amount of a foreign currency is quoted against one US Dollar.
A buy or sell order that will conclude automatically at the last part of the trading day.
A foreign exchange trade that is opened and closed on the same trading day.
A trader who buys and sells on the source of small short-term price movements.
A drop in the worth of a currency due to forex market forces.
Term referred to a faction dealing with a particular currency.
The act by a government to lessen the external value of its currency.
Quoting in fixed units of foreign currency against changeable amounts of the domestic currency.
An account in which the customer allows a trading institution to act on the customer's behalf in buying and selling currency exchange pairs.
An individual who acts as a chief or counterpart to a transaction.
A negative balance of trade (or payments), when the expenditures are greater than income/revenue.
The date of maturity of the deal, when the currencies exchange is actually made. This date is usually known as the value date in the FX or Money markets.
An FX trade where both parts make and take actual delivery of the currencies traded.
A fall in the value of a foreign exchange currency due to market forces other than official action.
A contract that changes in value in relation to the price movements of an underlying security, future or other physical instrument.
The planned downward adjustment of a currency's value vs. the value of other currency usually caused by official announcement.
A government issued statistic that states current economic growth and stability.
A price region, which suggests a balance between demand and supply for a currency pair in the marketplace.
The principal objective of the EMU is to launch a single European currency called the Euro, which will officially reinstate the national currencies of the member EU countries in 2002.
The Central Bank for the new European Monetary Union.
Acronym for European Monetary System, an agreement between member nations of the European Union to uphold an alignment between the exchange rates of their respective currencies.
The principal goal of the EMU is to set up a single European currency called the Euro, which will officially replace the national currencies of the member, EU countries in 2002.
The risk of getting losses resulting from an unfavorable change in exchange rates.
The currency of the European Monetary Union (EMU), which replaces the European Currency Unit (ECU).
The Process of finishing an order or deal.
The Central Bank of the United States.
An official foreign exchange rate set by fiscal authorities for one or more currencies.
To be neither too long nor too short is the same as to be flat or square. One will have a flat book if he has no positions or if all the positions gets cancel each other out.
A foreign exchange rate where the price is determined by market forces. Even floating currencies are subject to intervention by the fiscal authorities. When such activity is often the float is referred as a dirty float.
Exchange rates with a fixed parity against one or more foreign currencies with often revaluations, a form of managed float.
Transaction which involves the tangible exchange of two currencies on a specific date at a rate agreed at the time of the conclusion of the contract (short leg), at a date further in the future at a rate agreed at the time of the contract (the long leg).
The instantaneous buying of one currency and selling of another in an over-the-counter market.
A deal that will instigate at an agreed date in the future.
Thorough analysis of economic and political information with the objective of determining future movements in a financial market.
The regulatory agency liable for administering bank depository insurance in the US.
The points that are added to or subtracted from the spot rate to estimate the forward rates required for a forward foreign exchange transaction.
An obligation to exchange a good, service or instrument at a set price on a particular future date.
Hasty movement in a Forex market caused by strong interest of buyers and sellers.
The regulatory agency in charge for administering bank depository insurance in the United States.
The central banking system in the United States.
The process of completing a customer's order in buying or selling a currency pair.
The price at which a buying and selling order was executed.
The risk that a firm will be incapable of gathering its financial obligations.
A Term that describes a trading book with no market exposure.
The committee that sets money supply goals in the US which have a propensity to be implemented through Fed Fund interest rates.
Term used for referring to the foreign exchange market.
Groups formed between foreign exchange dealers in the major financial centers to persuade educational and social contacts.
The net price resulting from calculating the forward points and subtracting them from the existing spot rate.
Forward rates are quoted in terms of forward points that represent the difference between the forward and spot rates.
An order left with a Dealer to buy or sell at a fixed price and remnants in place until gets cancelled by the client.
The purchase of a stock, service, or any currency for investment or speculation.
The selling of a foreign currency or any instrument not owned by the seller.
The actual system for supporting the value of foreign currency issued. The price of gold is fixed against the currency it states that the increased supply of gold does not reduces the price of gold but causes prices to increase.
Fixed margin within that particular exchange rates are allowed to fluctuate.
Total value of a country's output, income or expenditure produced within the nation's physical borders.
A major world currencies, which is well traded and easily converted into other currencies.
The practice of undertaking one investment activity in order to protect against loss in another.
Usually the highest traded price or the lowest traded price for the fundamental instrument for the current trading day.
Acceptance of buying at the offer or selling at the bid.
An investment position or mixture of positions, which reduces the volatility of your portfolio value.
International Monetary Fund, established in 1946 to offer international liquidity on a short and medium term and to support liberalization of exchange rates.
The required initial deposit of security to enter into a position as a guarantee on future performance.
The Foreign Exchange rates at which one international bank quote another international bank.
Monetary condition whereby prices for consumer goods rise, eroding purchasing power.
The minimum portion of a new security purchase, which an investor need to pay for in cash.
A trader who trades for small, short-term profits in course of a trading session, hardly carrying a position overnight.
A NASDAQ stock symbol mentioning that the stock has no voting rights.
In forex, jargon for the New Zealand dollar.
A market position where the Client has purchased a currency he earlier did not hold own.
A request for buying or selling a foreign currency at a specified price or better.
A composite index (1992 = 100) of ten economic indicators intended to envisage economic activities in future.
The London Inter-Bank Offered Rate.
Refers to the relationship between transaction size and price movements, in other words it is the ability of a market to accept large transactions.
The closing of an accessible position through the execution of an equalized transaction.
When a currency is bought, the pair present in the primary currency is 'long' and the secondary currency is 'short' during foreign exchange.
An appeal from a dealer or other collateral for extra Forex funds assuring performance on a position that has moved against the customer.
A dealer who regularly quotes both bid and asks prices and is ready to make a two-sided market for any financial instrument.
The daily adjustment of an account to replicate accrued profits and losses frequently required calculating variations of margins.
The date for settlement or finishing of a financial instrument.
A Forex market participant who increase market exposure when the market is rising and decreases exposure or goes short when the market is declining.
Customers need to deposit funds as security to cover any possible losses from adverse movements in prices.
A set minimum margin, which a customer should maintain in his margin account.
An account, which allows leverage buying on credit and borrowing on currencies already in the account.
A call for additional funds in a margin accounts either because the value of equity in the account has fallen below a required minimum.
This refers to the time of day that a market closes. 5:00 PM EST is often referred to and understood as the market close because value dates for spot transactions change to the next new value date at that time.
A customer order for instantaneous execution at the best price available when the order reaches the marketplace.
The latest quote of a currency pair.
The Forex risks that occur when general market pressures cause the value of an investment to fluctuate.
The leaning of a currency pair to persist movements in one direction.
An order on a foreign exchange, which is made by a participant firm or on behalf of a partner, officer, director, or employee of the participant firm.
The amount of currency bought or sold, which has not yet been offset by opposite transactions.
Amount of assets, which exceed liabilities; Might also be known as stockholders equity or net assets.
The price, or rate, that a willing seller is ready to sell at.
A trade with which serves to cancel or offset some or all of the Forex market risk of an open position.
A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.
An order that would be executed when a market moves to its chosen price.
Any deal that has not been settled by physical payment or reversed by an equal and opposite deal for the same particular value date.
Used to depict any transaction that is not accomplished over an exchange.
A trade that ruins opens until the next business day.
Refers to a purchase or sale in between the hours of 9.00 pm and 8.00 am on the specific following day.
A customer's instructions to purchase or sell currencies.
Trader's actual position may be long or short in a currency at the end of the trading day.
The sum of one currency in terms of another.
A Digit that is added to or subtracted from the fourth given decimal place. One unit of price exchange in the bid/ask price of a foreign currency.
The net total holdings of a given foreign currency.
In the forex market, it is the total sum of points added to the spot price to predict a forward or futures price.
The ability of all market traders to "see" or deal in the same price.
The term used in currency market to symbolize the smallest incremental move an exchange rate can make.
The vagueness in return on an investment due to the possibility that a government might take actions which are harmful to the investor's interests.
The actual amount endowed by the client.
An analytic market price, usually used for information purposes only.
The price or value of one currency in terms of another (exchange rate).
A term used in technical analysis representing an exact price level at which analysis concludes people would further sell.
An overnight swap, particularly the next coming up business day against the following business day (also called Tomorrow Next, abbreviated as Tom-Next).
The amount of money, which an individual could afford to invest, if lost will not affect their lifestyle.
Daily calculation of prospective profits or losses on open positions based on the difference between the settlement price of the last trading day and the current trading day, in other words an increase in the foreign exchange rate of a currency as a result of official action.
The hazard that the exchange rate on a foreign currency will move against the position held by an investor.
The employment of financial analysis and use of trading techniques to diminish its financial risk.
An order to carry out a transaction only at a particular price or higher.
A situation where a currency has been sold with the aim of buying back the position at a lower price to make a profit.
Rate at which a bank is ready (willing) to sell a foreign currency.
When a currency pair is sold, the position is said to be short in foreign exchanges.
The pressure on short trader to cover their positions as a result when sharp price increases.
It's the experience of not getting filled at your expected price when you place a market order or stop loss.
Market where people buy and sell actual financial instruments for two-day delivery.
The procedure to move the spot settlement value date on an open position forward to the next suitable value date.
The price at which the currency is presently trade in the spot market.
Known as UK currency, the Pound otherwise referred as "cable."
An order to buy or to sell a currency when the currency's price passes a specified level.
The course by which a trade is entered into the books and records of the equivalents to a transaction.
The date upon which forex deals get settled.
An order to buy or sell at the market when a meticulous price is reached, either above or below the price that reigned when the order was given.
A system used in technical analysis that designates a specific price ceiling and floor.
The simultaneous buying and selling of the same amount of a given currency for two different dates, against the purchase and sale of another currency.
Slang for Swiss Franc in foreign currencies exchange market.
To go 'short' is to have sold an instrument without actually owning it, and to hold a short position with expectations that the price will decline to attain profit in the future.
The most usual foreign exchange transaction.
The difference between the bid and offer (ask) prices and for measuring forex market liquidity.
An attempt to forecast prices by scrutinizing market data.
The cost at financial instrument or security is bought or sold.
A particular date on which a trade takes place.
The total money value of all carried out transactions during a given time period.
When both a bid and offer rate is quoted for FX transaction.
A customer's instructions for buying or selling a currency pair which, when executed, would result a drop in the size of the available position and show a profit on said position.
The smallest probable change in a price, perhaps up or down.
The method of moving the settlement value date on an open position forward from one business day after the trade date (tomorrow), to the next valid value date (next), the spot value date.
New price quote at a price higher than the previous quote.
A regulation in U.S whereby a security may not be sold short if not the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.
The interest rate at which US banks would lend to their prime corporate trader or customers.
An exchange rate is usually considered to be undervalued when it is below the purchasing power parity.
The United States Department of the Treasury is the government department accountable for issuing all Treasury bonds, notes, and bills.
The date on which counterparts to a financial transaction decides to settle their existing respective obligations.
The term usually refers to extra funds that must be deposited as a result of hostile price movements.
A statistical measure of the foreign currency market or a currency's price movements over time and is calculated by using system of standard deviation. Higher volatility simply states greater fluctuation in price.
Normally the spot of settlement for two working days from today.
Slang for a condition of a highly volatile market where a sharp price movement is pursued by a sharp reversal in a fast manner.
Income tax suspended from employees' wages and paid directly to the government by the employer.
A matched deal that produces neither a gain nor a loss.
A NASDAQ stock symbol specifying that it is a mutual forex fund.
Slang for a billion.
A statistical measure that quantifies the distance a data point is from the mean of a data set.