Forex Glossary and the economy


Appreciation - Assessment - Strengthening the response to the currency market situation and not an official.

Big Figure - the last number of decimal places in the price of buying and selling certain. - Usually refers to the first 2 digits of the exchange rate from the right he had been treated traders such as the Convention when determining price. For example, determine the price of "30/40" on the dollar index may give an indication of the price of 1.5530/1.5540. Number "large" in this example is 1.55 understood by both parties (because it usually does not change only rarely during the trading day one). So they do not give a price but for the last two digits for the price of demand / supply.

Yard - Yard - a label and title to the number of billion

Arbitrage - arbitrage - a kind of trading risk-free where they are buying and selling the same tool at the same time in different markets in order to obtain profits from the price difference in those markets.

Around - around - used to give a price for (long term) "premium / discount".

Ask Rate - the offer price - the price offered for sale by price (selling / buying and)

Asset Allocation - out - in foreign exchange transactions, it is the right to receive an amount of currency from the other side, both with regard to the origins of the budget (eg a loan) or at a specified date with respect to futures contract futures contract is covered by the order is not unprecedented or transactions.

Back Office - Back Office - Section for an entrepreneur company's financial transactions between the investor and the company's operations and opening an account.

Balance of Trade - trade balance - exports minus imports. Usually are excluded unforeseen things, otherwise referred to as commercial as processes or actual trade. Can be given when prices fob (FOB) / delivery side of the ship (FAS) or after customs clearance or export fob.

Base Currency - the base currency - the currency in which the results of operating activities in the bank or institution. Also called the currency used.

Bear Market - deteriorating market - market where prices are down strongly against a background of widespread pessimism (opposite of the market).

Bid / Ask Spread - the difference in value buying and selling - the difference between the price of the sale and purchase of the company, the difference is usually fixed.

Bid Rate - the bid price - the price my father by the trader will buy its currency pair.

Booked - recorded - recording the transaction outside the country where traded the same deal.

Bretton Woods - Bretton Woods - the conference site, which led in 1944 to establish a system of foreign exchange. Result of deliberation to configure the International Monetary Fund (IMF).Proven System currencies in the system of fixed foreign exchange rate fluctuation of 1% of the currency for gold or the dollar.

Broker - Broker - Agent following orders to buy and sell currencies and related instruments either for a commission or percentage. Brokers are agents working for a commission and they are not the owners of the original account or agents working on their own.In the foreign exchange market, brokers tend to act as intermediaries between banks are collecting between the seller and the buyer for a commission paid by the applicant or by both parties. There are four or five major global brokers operating through associated companies and partners in many countries.

Bull Market - market prices bound to rise - market prices is bound to rise.

Bundesbank - Bands Bank - Central Bank of Germany - German Central Bank.

Cable - cable - a term used in the foreign exchange market for the price of the dollar / pound sterling.

Cash - cash - usually refers to the process of reviews have been contracted for settlement on the date of the agreement.This term is used mainly in North American markets and countries that rely on foreign exchange services in those markets because of the preferences of the time range, such as Latin America. In Europe and Asia, cash transactions are usually referred to as a benefit contracts on the same day.

Central Bank - Central Bank - the central bank provides financial services and banking to the country's government and commercial banks. It is also apply for government monetary policy, in addition to changing interest rates.Reserve Bank of India is India's central bank, which play a role in maintaining the situation of the Organization in the foreign exchange market intervention through various instruments such as cash reserve ratio and discount rate and open market operations and ethics (moral induction).

Chartist - technical analysts - who studies graphs and charts of historical data for up to know the trend is expected to rebound direction. Note This includes specific models and features of the map to derive resistance levels and the model of my head and shoulders model and duplication of basement or loft which may indicate a trend reversal.

Choice Market - Market optional - the financial market that does not exist by the difference between the purchase price and sale.

Clearing - cover - the balance and coverage on the open transactions by the company.

Comex - Stock Exchange trade in the United States - Commodity Exchange of New York - New York Stock Exchange trade.

Commission - commission - fees that may Tansabh for customers to trade on their behalf.

Confirmation - Confirmation - a note to the other party describing the details of the deal

Contract - contract - an agreement to buy or sell a specified amount of a particular currency or option for a particular month in the future (see futures contract).

Counterparty - the counterparty - the customer or the bank through which the foreign exchange transaction

Counterparty Risks - risks of the other party - Foreign Currency Inter-bank Exchange (FOREX) instruments - tools currency foreign exchange between banks (p August r m) are centers (purchase and / or sale) between the client and the other party and, unlike tools of foreign exchange to exchange the currency in which, in fact, guaranteed by a certifying institution for settling, which was trading him, it was not guaranteed settlement institution.So, when you buy the client tool for foreign exchange transactions outside the stock market depends on the other party, who bought him the tool to complete the contract. The other party fails to complete the Centre which may result in loss of any payment to a former building centers as well as the loss resulting from the expected gain from the deal.

Country Risk - risk end of the country of - factors affecting trade in the currency are unique to a particular State. This includes political risk, regulatory and legal holidays.

Cross Rate - exchange rate is derived - the exchange rate between two currencies, usually arises from the exchange rates of one of the two currencies, including the majority of the currencies the U.S. dollar.

Currency - Currency - The type of exchange used by the country.Can be traded for other currencies in the exchange market, for every currency value against other currencies.

Currency Basket - a basket of currencies - a variety of weights for other currencies combined together with respect to a basket of currencies (eg ECU or SDR). Sometimes used by the Bank to install the price is usually in the basket of trade weights.A selected group of currencies with an average user weights as a measure of value or the amount of obligation. Basket of currencies normally used in contracts as a means to avoid (or reduce) the risk of currency fluctuation.


Day Trading - Day Trading - Day Trading deal is a currency exchange deal is renewed automatically every night at 22:00 (GMT) starts from the day of submitting the application until the end of the deal. The deal ends case of any of the following: 1. You request the termination yourself .2. The price of the daily trading price to avoid the loss that you specified previously .3. Date the transaction.As long as the deal is open, is calculated by the renewal fee every night at 22:00 (GMT).

Dealer - Dealer / Broker - an individual or company working / acting on behalf of heritage, and not as an agent in the purchase and / or sale of securities. The self-employed traders to trade and bearing risk than the brokers who trade on behalf of their clients only.

Deficit - inability - lack of balance of trade or balance of payments, or government budgets

Delivery - delivery - settle a transaction receipt or by offering financial instrument or currency for sale

Derivative - Derivatives - a general term for own risk management tools such as futures, options and swaps and so on. The contract value moves on the underlying instrument or currency.In the light of the extensive losses by banks or companies, has been the subject of derivatives and control material for discussion.

Desk - Office of trading - a term referring to a deal for a particular currency or currencies.

Devaluation - devaluation - Amendment intended to reduce the currency against the selected edges or lines, currency fluctuations, which usually Socializing with a formal declaration.

EMU - and DNA - European Monetary Union - ECU

Economic Indicator - economic indicator - Statistics reflecting the rate of economic growth the past or present or future trends such as retail sales and employment.

European Union - European Union - the group known in the past, the European Community.

Expiry Date - the expiration date - the last day the option holder may use their right to buy or sell the principal support.

Exposure - exposure - the total amount of money that was lent to the borrower or country. Banks set rules to prevent exposure, too much to one client. In trading operations, is the probability of gain or loss from fluctuations in market prices.

Fed - the Federal Reserve banks - the Federal Reserve Banks of the United States of America.Federal Deposit Insurance Corporation - (FDIC). The Federal Insurance Deposit Company (ASHA PLO). Membership is mandatory for members of the Federal Reserve System. The company is strongly involved in the crisis, deposits and loans in the late eighties.

Federal Reserve System - federal reserve system - a system the Central Bank of the United States includes 12 banks federal reserve controls the 12 districts follow the Federal Reserve. Membership in the Federal Reserve banks are mandatory for banks licensed by the Comptroller of the Currency and optional for state banks licensed.

Flat / Square - without benefits / balanced - where a client is trading in this currency, or when you reverse an earlier thereby creating a neutral center (without interest). Example: I bought a $ 500,000, then sold = $ 500,000, without interest.

Foreign Exchange - Foreign Exchange - buy or sell a currency against sale or purchase of another currency.

Forward Points - points forward - the difference in interest rate between two currencies at the points appearing in the exchange rate.Points are added to the futures or subtracted from the cash price to give the forward rate or the price of segmental, with dependence on whether the currency futures in the process of addition or deduction.

Forward Rate - futures price - the price at which the conclusion of today's foreign exchange contract for settlement in a specified future date to be determined when entering this contract.Decision-making by adding or subtracting points by the difference between deposit rates for the currencies concerned in the transaction. The base currency with a higher interest rate is discounted for the proposed currency at a lower interest in the futures market. Therefore, the points put forward from the current price of money.Similarly, the base currency with a lower interest rate is at a premium, and add points for the futures price of the current cash price for the futures.

Fundamental Analysis - Fundamental analysis - Analysis based on economic and political factors.

Futures Contract - futures contract - a deal it is for the exchange of futures requires delivery of a specified quantity and quality of specific commodity, currency or financial instrument in the month deadline, if not flowing before the maturity of the contract.

GTC "Good Till Cancelled" - "It exists even cancellation" c h a - it is based with the broker for the sale or purchase until the cancellation at a fixed price. It will continue in place until the client cancels.

Hedge - cover - buy or sell options or futures contracts as a temporary replacement for a deal will be at a later date. Usually requires the opposing centers in the cash market or futures or options market.

Inflation - inflation - is rising in the general price level on the decline in purchasing power. Sometimes referred to as a movement in excess of such price levels

Initial Margin - initial margin - the required deposit from the broker represents the type of insurance in the event of default by the other party for payment before the client can trade / execute the transaction.

Interbank Rates - rates between banks - the major international banks to provide bid price of foreign currencies for major international banks. Usually, the public can not and businessmen to get these prices.

LIBOR (London Inter Bank Offer Rate) - Libor (the interest rate prevailing between banks in London) - The average price between the private banks the British Bankers Association submitted to the dollar-denominated deposits in the London market in accordance with the presentations of the 16 largest bank. The real price of contracts that have entered into two days from the date of its appearance.

Leading Indicators - key indicators - Statistics precede changes in the rates of economic growth and commercial activity as a whole, such as factory orders.

Limit Order - Limit Order - Day Trading deal - is to implement the Day Trading deal at a pre-determined by the client, in the case of the emergence of this price in the market in real time. Min price higher than the existing price at the time of reservation.Is the reservation will continue for a period specified by the client, and associated safeguards necessary to facilitate the expected date of the transaction trade

Liquidation - liquefaction - any deal or end compensate for the center was opened before.

Liquidity - liquidity - the ability of a market to accept large transactions without any impact on interest rates

Long - buy long-maturity - Center in the stock market in which the customer has bought a currency not owned by. For example: to buy dollars means taking the customer center to buy dollars.

Make a Market - creating a market - It is said that agents "create a market" when he presents prices supply and demand to be ready for purchase and sale.

Margin - margin - the difference between buying and selling prices, is also used to show the discount or premium between cash price and futures. Of the options, the amount to be collateral from the writer of the option. Options for futures, a deposit made for a room - clearing account when you configure the futures position. Reserve ratio required by the Federal Reserve of the United States to implement the initial credit transaction.

Margin Call - request for coverage - a request for additional funds to cover the centers.

Marginal Risk - a risk margin to cover the liquidation of futures contract - the risk that the customer goes bankrupt after entering the futures contract. In such a position, you must close on the source of commitment and risk management that require payment of a fringe movement to the contract.

Marked-To-Market - the index of the settlement of profits and losses daily - reported earnings and / or losses at the end of the meeting according to the daily closing prices per share and is placed on the visa account "indicator by the settlement of profits and losses every day." If there is a regressive movement in prices, will be asked to improve party's losses, and the party can record a profit in pw

Maturity - Maturity - the settlement date of the transaction that was specified when entering the contract

Off-Shore - out of bounds - of the financial institution, which, although they exist in the country, with a simple connection to the financial system of this country. In some countries, are not allowed to bank what to do engage in an activity in the local market but can do so with other foreign banks only.So know that the unity of banking outside the border.

Offer - Offer - the price at which the broker is willing to sell the base currency.

Official Settlements Account - the expense of a formal settlement - a measure of the balance of payments in the United States depends on the movement of dollars in holdings of official foreign reserves of the United States. Referred to him as well as a backup account transactions.

One Cancels Other Order - OCO automatically ordered another - an order automatically cancels a previous order another when implemented and referred to him as well as a de facto eliminates the other, or "one cancels the other."

Open Position - Mrkzalsafqp open - no deal had not been resolved to pay the actual or guarantee a deal equal to or reverse the same on the maturity date. Can be termed high-risk proposition, cost-effective.

Over The Counter (OTC) - OTC - market led directly between dealers and authentic over the phone and computer network rather than a specific trading floor of the exchange. These markets were not high popularity because of the risks faced by both parties in the case of the other party fails to implement the contract. Were not ever part of the stock market because it seemed "unofficially."

Overnight Limit - limit between overnight - the net long position or short in the currency of one or more agents can be postponed for the next trading day. Convert the log to another bank clearing house in the timing of the next business day reduces the need for brokers to maintain that exposure unattended.

PPI - PPI - Producer Price Indices - Producer Price Index. See indicators of wholesale prices.

Pip - one point - see point. (0.0001 of a unit).

Political Risk - political risk - the possibility of loss resulting from a change in government policy or because of the risk of expropriation (nationalization by the government).

Position - Centre - Net total exposure in the currency concerned.The Centre can be interest-free or balanced (without exposure) long (the largest amount of currency bought and sold, or short (the largest amount of currencies that were sold for a purchase).

Premium - well - the amount of the increase in the price-term cash price. Amount of the increase in market price support for the nominal value. Of options, the amount that must be paid by the buyer to the seller for an option contract.Margin paid above the normal price.

Quote - given the price - reference price. Price given for the purposes only and is not indicative of the contract.

Rate - Rate - The price of a currency than others. Have the same meaning of the term equivalent

Resistance - Resistance - price level at the top is expected when you access it to perform sales, because it is not expected to rise by the price.

Revaluation - re-evaluation - an increase in the exchange rate for the currency as a result of official action

Risk management - Risk management - identify, accept, or measure against the risks that threaten the gains entity or organization. For the foreign exchange risk management requires consideration market and the rule of the state and the country and the conversion and delivery, credit and risk the other party and other items

Risks - risks - there are risks involved in any market. The difference in yield and the possibility of not walking the effective yield with the expected return. Risks associated with trade in foreign currencies are: market, exchange rate and interest rate and the yield curve, volatility, liquidity and distress sales and the counterparty credit and country risk.

Rollover - Tetbit deals - when a deal to leave the settlement of the due date for another depending on the difference in interest rate between two currencies, for example, the following day.

Settlement - settlement - the actual exchange of one currency for another.

Short - Short - Centre in the market selling the currency in which the customer does not already own. Usually shows the basic currency.

Spot Price / Rate - the price / cash price - the price at which the currency is currently trading in the spot market

Spread - the difference between the price of supply and demand - the difference between the price of supply and demand for currency. The difference between the price-limits associated with some two decades. For options, transactions that require two or more of the same currency in question.

Sterling - £ - £, otherwise known as cable.

Stop Loss Order - ordered the sale to avoid the loss - is to finish the center, when the price of the market for this center to a predetermined level. It asserts that, in the case of currency weakness in a given ratio, will be covered short position and it requires even afford to lose. Achieve profitable orders less prevalent

Support Levels - levels of support - the lowest level of the price can not be the tool to drop him, and therefore, it is expected the implementation of the procurement process.

Swap - swap (replacement of one currency for another) - the buying and selling the same amount of currency together in different dates, against the sale and purchase of another currency. Barter can be a swap against the futures contract.In essence, bartering is somewhat similar to borrowing one currency and lending another currency for the same period. However, any rate of return or cost of funds appear in the

Technical Analysis - Technical Analysis - Price study that reflects the supply and demand factors of a currency. Means recognized by the media and is showing signs of a prominent trend lines, lower prices and top media and forms, and gaps.

Technical Correction - technical correction - changes in price does not depend on the top of the market, but rather on technical factors such as quantity and graphs.

Thin Market - a limited market - market by trading volume is low and therefore the difference between supply and demand and widely traded and liquid instrument in the development of low.

Tomorrow Next (Tom next) - the buying and selling at the same time for delivery the next day either for sale or purchase (tomorrow next) - the buying and selling currency at the same time for delivery the next day either for sale or purchase

Transaction - transaction handling - buy or sell securities resulting from the implementation of something.

Transaction Date - date of the transaction - the date of the trade.

Under-Valuation - less than the original appraisal value - the exchange rate is less than its value when they are usually worth less than the fair value of purchasing.

Uptick - a simple move - the new price in the future, immediate seconds ..

Value Date - the due date - to foreign exchange contracts, the parties concerned on the exchange of currency exchange that was purchased or sold.For the spot transaction, a two-day work-limits in the country of the bank that made the offer, which determines the due date for immediate sale. The only exception to this general rule is the spot day in the center of determining the price falls on a bank holiday in the country (the country) currency (Forex) foreign. In this case is to postpone the due date for an additional day.Inquirer is the body that it must make sure that today the immediate consistent with applicable today with the party's responsive. Would have to be the due date for months futures in the day corresponding to the appropriate calendar month. If the signed date of one month on a holiday in one of the banking centers, P! Of age will be operating on is the first working day following in the centers.Modify the due date for a particular month does not affect the other maturities that will continue accrual in history deserved to replicate the original if the day's work. If you earned the last instant the last working day in the month, the dates of future will be consistent with that history of entitlement on the last day of work. Is referred to as maturity

Variation Margin - margin of difference (variance) - needed the money deposited to the client when the price movement and the descent of money for less than the required ratio.

Volatility - the volatility of the market - a measure of the amount which is expected for the price of the original when you access it that vibrates at a specific period. Usually measured by the annual standard deviation of daily changes in price (historic).Can be a hint of futures prices, implied volatility.

World Bank - World Bank - Bank of the component members of the IMF, who will be their aim to help member States develop the provision of loans is not available when private capital.


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Forex Glossary and the economy

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