Account: A record of transactions of goods and services owed by one person to another (Go to our forex account section).
Accrual: The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals, over the period of each deal.
Actualize: The underlying assets or instruments which are traded in the cash market.
ADX: Measures the strength of a prevailing currency trend and whether or not there is direction in the forex market. Plotted from zero on up, usually a reading above 25 can be considered directional.
Adjustable Peg: Term for an exchange rate regime where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency, often the dollar, but where the rate may be changed from time to time. This was the basis of the Bretton Woods Agreement. See peg, and crawling peg.
Adjustment: Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate.
Agent Bank: 1) A bank acting for a foreign bank. 2) In the Euro market - the agent bank is the one appointed by the other banks in the syndicate to handle the administration of the loan.
Agio: Difference in the value between currencies. Also it’s used to describe percentage charges for conversion from paper money into cash, or from a weak currency into a strong currency.
Aggregate Demand: Total demand for goods and services in the economy, consisting of government spending, private/consumer and business investment.
Aggregate risk: Size of exposure of a bank to a single customer for both forex spot and forward contracts.
Aggregate Supply: Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.
All or None: A limit price order that instructs the broker to fill the whole order at the stated price or not at all.
Aggressor: A trader dealing on an existing price in the market.
Appreciation: A currency is said to 'appreciate ' when it strengthens in price in response to market demand.
American Option: An option which may be exercised at any valid business date through out the life of the option.
Arbitrage: Profiting from differences in the price of a single currency pair that is traded on more than one market (Increase the value of assets).
Around: Used in quoting forward "premium / discount".
Ascending Triangles: A bullish continuation pattern that is shaped like a right triangle consisting of two or more equal highs forming a horizontal line at the top.
Asset Allocation: The diversification of one's assets into different sectors, such as real estate, stocks, bonds, and forex, to optimize growth potential and minimize risk.
Asset Swap: An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities.
Ask: The price at which a currency pair or security is offered for sale; the quoted price at which an investor can buy a currency pair. This is also known as the 'offer', 'ask price', and 'ask rate'.
Asset: An item having commercial or exchange value.
At Best: An instruction given to a dealer to buy or sell at the best rate that is currently available in the market.
At or Better: An order to deal at a specific rate or better.
At-the-Money: An option whose strike/exercise price is equal to or near the current market price of the underlying instrument.
At Par Forward Spread: When the forward price is equivalent to the spot price.
At the Price Stop-Loss Order: A stop-loss order that must be executed at the requested level regardless of market conditions.
Auction: Sale of an item to the highest bidder. (1) A method commonly used in exchange control regimes for the allocation of foreign exchange. (2) A method for allocating government paper, such as US Treasury Bills. Small investors are given preferential access to the bills. The average issuing price is then computed on the basis of the competitive bids accepted. In some circumstances for government auctions it is the yield rather than the price which is bid.
Authorized Dealer: A financial institution or bank authorized to deal in foreign exchange.
Average Rate Option: A contract where the exercise price is based on the difference between the strike price and the average spot rate over the contract period, sometimes called an "Asian option".
Accrual: The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals, over the period of each deal.
Actualize: The underlying assets or instruments which are traded in the cash market.
ADX: Measures the strength of a prevailing currency trend and whether or not there is direction in the forex market. Plotted from zero on up, usually a reading above 25 can be considered directional.
Adjustable Peg: Term for an exchange rate regime where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency, often the dollar, but where the rate may be changed from time to time. This was the basis of the Bretton Woods Agreement. See peg, and crawling peg.
Adjustment: Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate.
Agent Bank: 1) A bank acting for a foreign bank. 2) In the Euro market - the agent bank is the one appointed by the other banks in the syndicate to handle the administration of the loan.
Agio: Difference in the value between currencies. Also it’s used to describe percentage charges for conversion from paper money into cash, or from a weak currency into a strong currency.
Aggregate Demand: Total demand for goods and services in the economy, consisting of government spending, private/consumer and business investment.
Aggregate risk: Size of exposure of a bank to a single customer for both forex spot and forward contracts.
Aggregate Supply: Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.
All or None: A limit price order that instructs the broker to fill the whole order at the stated price or not at all.
Aggressor: A trader dealing on an existing price in the market.
Appreciation: A currency is said to 'appreciate ' when it strengthens in price in response to market demand.
American Option: An option which may be exercised at any valid business date through out the life of the option.
Arbitrage: Profiting from differences in the price of a single currency pair that is traded on more than one market (Increase the value of assets).
Around: Used in quoting forward "premium / discount".
Ascending Triangles: A bullish continuation pattern that is shaped like a right triangle consisting of two or more equal highs forming a horizontal line at the top.
Asset Allocation: The diversification of one's assets into different sectors, such as real estate, stocks, bonds, and forex, to optimize growth potential and minimize risk.
Asset Swap: An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities.
Ask: The price at which a currency pair or security is offered for sale; the quoted price at which an investor can buy a currency pair. This is also known as the 'offer', 'ask price', and 'ask rate'.
Asset: An item having commercial or exchange value.
At Best: An instruction given to a dealer to buy or sell at the best rate that is currently available in the market.
At or Better: An order to deal at a specific rate or better.
At-the-Money: An option whose strike/exercise price is equal to or near the current market price of the underlying instrument.
At Par Forward Spread: When the forward price is equivalent to the spot price.
At the Price Stop-Loss Order: A stop-loss order that must be executed at the requested level regardless of market conditions.
Auction: Sale of an item to the highest bidder. (1) A method commonly used in exchange control regimes for the allocation of foreign exchange. (2) A method for allocating government paper, such as US Treasury Bills. Small investors are given preferential access to the bills. The average issuing price is then computed on the basis of the competitive bids accepted. In some circumstances for government auctions it is the yield rather than the price which is bid.
Authorized Dealer: A financial institution or bank authorized to deal in foreign exchange.
Average Rate Option: A contract where the exercise price is based on the difference between the strike price and the average spot rate over the contract period, sometimes called an "Asian option".
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