- B
- Bear depressor: Person who believes that prices / the market should decline.
- Bear Market Bear market: Market where prices are falling sharply to a general climate of pessimism (opposite of Bull Market).
- Market Bid Price: The price at which the purchaser intends to purchase, the price offered for a currency.
- Bull upside: Person who believes that prices / the market should rise.
- Bull Market bull market: Market characterized by rising prices.
- Broker Agent: The individual that executes commands of investors to buy and sell foreign exchange. For this service, charge a commission, which according to the broker and the amount of the transaction is negotiated or not.
-
C
- Call Rate: The night interbank rate.
- Cash Market: The market for trading real currency.
- Converted currency: Currency which can be exchanged freely against other currencies or gold without special authorization from the appropriate central bank.
- Counter party Institutional: The customer or bank with whom / is a foreign exchange agreement. The term is also used to market interest rates and currency exchange market in relation to a party to exchange currency.
- Cross Rate Cross exchange rate: Exchange rate between two currencies, usually created by the individual exchange rates of two currencies on the basis of its relationship with the U.S. dollar
- Currency Risk Currency risk: Risk of loss from adverse changes in exchange rates.
- Currency Swap Currency Exchange: Agreement between the two institutions and bond flows to exchange interest payments in different currencies for an agreed period and exchange basic funds in different currencies against pre-agreed exchange rate at maturity.
- Currency Option Options on foreign currency: Agreement option which entitles the purchase of one currency to another currency on a specified exchange rate during a certain period.
- Currency Swaption OTC: Option agreement for option in foreign currency.
- Currency Warrant Right Exchange: OTC options, long-term (over one year).
-
D
- Day Trading Day Trading: Refers to opening and closing the same position or the same job in a trading day.
- Dollar Rate Rate to the dollar: When a variable amount of a specified foreign currency against one U.S. dollar U.S., regardless of who is the dealer or in what currency to request a determination. The exception is the rate Sterling / U.S. Dollar (cable) which is identified as a variable amount of U.S. $ over a pound.
-
E
- EMS E.N.S. Abbreviation for European Monetary System: An agreement between the Member States of the European Union to maintain a coordination between the exchange rates of respective currencies.
- European Monetary Union European Monetary Union: The main objective of E.N.E. is establishing a single European currency, the euro, which will officially replace the currencies of EU countries 2002. Currently, the Euro exists only as a legitimate banking and securities trading and foreign exchange. Currently, members of E.N.E. are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.
- Exchange Rate Risk: See Currency Risk.
-
F
- Federal Reserve (Fed): The Central Bank of the United States
- Fixed Exchange Rate Fixed exchange rate: Official exchange rate set by monetary authorities for one or more currencies. In practice, even fixed exchange rates can vary between absolute maximum and minimum limits, leading to intervention.
- Flat / Square: When there is no profit or loss is stable or balanced. Stationary / balance is younger than positions or all positions balance each other.
- Floating Rate Interest Floating rate: Unlike the fixed rate, the interest in this type of agreement varies with market rates or prices benchmark. An example of a floating rate is the usual housing loans.
- Foreign Exchange Swap Currency Exchange: Transaction which involves the actual exchange of two currencies (principal amount only) on a given date at a price which was agreed at the time of conclusion of agreement (short) or a date in the future at a price which was agreed at the time of conclusion of agreement (term ).
- Foreign Exchange (or Forex or FX) Foreign Currency: The simultaneous buying of one currency and selling of another in an OTC market. Most major currencies against the dollar out U.S.
- Forward Forward: An agreement which will come into force on the agreed date in the future. The forward market in foreign currency is usually expressed as a margin above (premium) or below (discount) price in cash. For the actual forward exchange rate must be added to the margin at the spot. The price will reflect the exchange rate as would be the future date if the funds exchanged again to honor one where there would be no profit or loss (ie a neutral trade). The value calculated by filing the appropriate values and the exchange rate in cash. However, the future market, (future trading) can be customized according to the needs of both parties and be more flexible.
- Fundamental Analysis: Detailed analysis of economic and political elements to determining future movements in financial market.
-
G
- GTC “Good Till Cancelled”: An order for the Dealer to fixed price trading. The mandate applies until canceled by the customer.
-
H
- Hedging: The practice of undertaking one investment to protect against losses in other investments; eg exposed for sale or purchase of prior neutralization futures market to offset earlier uncovered sale. While the compensation practice reduces the potential risks, and tend to reduce potential profits.
- High / Low: Usually the highest and lowest trading price of the underlying product marketing for the current day.
-
I
- Initial Margin: The required initial deposit of collateral to enter into a position as a guarantee of future performance.
- Interbank Rate: The exchange rates which grant large international banks in other large international banks.
-
L
- Limit Order: Purchase order under a certain price and selling more than a certain value.
- Long Position: Market position where the client has bought a currency that was not before. Usually expressed in base currency, ie positive U.S. dollar (negative marks).
-
M
- Margin: Customers must submit capital as collateral to cover potential risks of adverse price fluctuations.
- Margin Call Notify deposit additional margin: Request clearing house to a member (or a company broker to a customer) to deposit a minimum margin to cover adverse movements in market prices.
- Market Maker Modulator Market: Dealer prices offered and intends to buy / sell at certain prices are supply and demand. The market maker observes commercial situations.
- Maturity: Settlement date.
-
O
- Offer: The price against which it intends to sell a vendor.
- One Cancels Other Order (O. C. O. Order): An order under conditions in which the implementation of part of the order automatically cancels the other party.
- Open Position Open Position: Any agreement has been settled by physical payment or reversed by equal and reverse the agreement for the same settlement date.
- Over The Counter (OTC) OTC. Term used for each transaction that takes place within the stock market.
- Overnight Trading Night market: Refers to the purchase or sale between 9:00 p.m and 8.00 before noon the next day.
-
P
- Pip or Points: The term used in currency market as the minimum unit of exchange rate fluctuation. In the event, usually a base unit (0.0001 for EUR / USD, GBD / USD, USD / CHF and .01 for USD / JPY).
- Political Risk Political Risk: The uncertainty on the performance of an investment because of the potential governmental activities which are detrimental to the interests of the investor.
-
R
- Resistance Resistance: Price level at which expected sales.
- Risk Capital venture capital: Amount of money that can be invested, the loss of which would not affect their lifestyle.
- Rollover Pass: When a settlement agreement extended to another future date based on the interest rate differential between two currencies.
-
S
- Settlement: Physical exchange one currency for another currency.
- Short: Sale of products the seller has in his possession and maintenance of uncovered positions pending a fall in prices to buy again in the future at a profit.
- Spot cash transactions: Transaction that takes place immediately, but the funds often change hands two days after the agreement.
- Spread: The difference between supply and demand, used to measure market liquidity. Small spreads usually indicates high liquidity.
- Stop Loss Order Mandate Minimize Damage: Order to buy or sell when the market reached a certain price, either higher or lower than the price charged when the order was given.
- Support Levels Support Levels: A value that markets expected.
-
T
- Technical Analysis: Trying to forecast future market movements by analyzing market data such as charts, price trends and trading volumes.
- Tomorrow to Next Simultaneous buying and selling currency for delivery the next day and sell the one after that or vice versa.
- Two-Way Price bilateral price: Set the price and supply and demand.
- US Prime Rate Base Rate: The rate at which banks lend U.S. the largest corporate customers.
-
V
- Settlement Date Value Date: Settlement date of the agreement in cash or a deferred agreement.
- Variation Margin Margin Changes: Additional margin requirement that needs a broker to the customer that market fluctuations.
- Volatility Volatility: Statistical measurement of market fluctuations or a security at a time, calculated using standard deviations. The high volatility associated with a high degree of risk.
Latest News
