Forex


ForexAccepted Accrued avatradetradingrebateadvance Americanstyle appreciation Arbitrage  arbitrage transactionsassetallocation asset allocation principlesAssetswap swap on interest heldAsset/liabilitymanagement asset liability managementAssetsliquidity liquidity of assets Assetssafety asset securityAssetsyield asset profitabilityATthemoney(ATM) price parityAuction bid for saleAuthorityletter authorization letterBanker’ sacceptance Bankers AcceptanceBasisswap(floating-againstfloatingIRS)Bearcallspread Buy right short spreadBearputspread Sell right short spreadBearerform  holderformbestorder bestpricetradingindicationslipBid avatrade forex broker borrowingrate(orbuyingprice, avatradebrokerrate)Bigfigure largenumber(thefirstfewdigitsnotreportedwhentrading)Bookentryform noentityformBreak- evenexchangerate two-flat-point exchange rateBrettonWoodssystem Braden International Monetary SystemBrokendate aberrant zero-day period (see Odddate) Bullcallspread buy-rights lookahead spreadBullputspread  nbsp;sell right look long spreads Buycall buy right buyorsellforward buy and sell forward Buyorsellspot buy and sell immediate Buyput buy and sell right Buyer buyer Calendarspread horizontal type spread strategyCalloption buying rightCallingcustomer enquiryparty enquirypartyCashflowbook cashflow registerCashflowgap cashflow gapCashflowgap& nbsp;fundinggapCashflowprojectionCashflowprojectionCash of Expectations samedaydeliveryCD(certificateofdeposit) depositarychainmethod jointalgorithmChiefmoneydealerChief Currency Trader Clearinghouse clearing houseCommercialhedge importer/exporter hedgeCommercialpaperCommercial promissory noteCommodityfuturestradingcommission U.S. Futures Trading CommissionCompetitivebid  BidContractdate ContractdateContractlimit ContractlimitContractrisk ContractriskCounterparty CounterpartyCountrylimit Countrylimit CountrylimitCouponrate& nbsp;couponrateCouponswap(fixed-againstfloatingIRS)Cover make up, offsetcoveredinterestarbitrage no exchange rate fluctuation risk of arbitrage operationCreditrisk credit risk Crosshedge cross-hedgingCrossrates cross-exchange rates (through a third cashback forex to calculate the exchange rate of two currencies)Currencyfuture foreign exchange futuresCurrencyfuturescontracts foreign exchange futures contracts Currencyfutures foreign exchange futuresCurrentyield current yieldCutofftime business cutofftimeDaytrading current day elimination (so that the net part of the day is zero)Dealer’sauthority  trading authorityDealingday tradingdayDealingroom tradingroomDealingticket tradingsheetDeliveryDate deliverydayDirectquotation=pricequotationDirectquotationDiscount  nbsp;discountDjindexfuture Dow Jones Index futures contractDraft bill of exchangeDuration durationEasymoney low-priced currencyEffectiveinterestrate effective interest rate Engineeredswaptransactionmanipulatedswapratetransaction(buy-selltwodifferenttransactionscombined,sothatithastheeffectofexchangetransaction)Europeancurrencyunit(ECU)EuropeanCurrencyUnitExchangecontrolsystem exchangecontrolsystem Exerciseprice performancepriceExpirydate expirationdateFacevalue facevalue(stock,note recorded on the name value) Firmmarket quotation firm marketFirmorder determine the instruction sheet Fixedexchangeratesystem fixedrateliability interestratefixedliabilityFixingdate indicatorinterestratefixedbase dateFlatyieldcurve levelyieldcurve floatingexchange floating exchange rate systemFloorbroker floorbrokerFloortrader floortraderFollowupaction dynamicstrategyforwardagainstforwardforwardforward exchange transactions Forwardrateagreement(FRA)ForwardrateagreementForwardrate ForwardrateForwardvaluedate Forwardforeign exchange maturity FT-SE100IndexFuture FTSE London Index FuturesFutures  futuresFXrisk exchange rate riskGapping period differential operationGeneralfloating universal floatingGenericSwap standard type of IRS tradinggoldexchangestandard gold exchange standard system goldexportpoint Goldrush goldstandard Governmentbonds GroupofTwenty20HangSengIndex  Chicago International Money MarketInthemoney(ITM) in-the-moneyIndexswap interest rate swapindirectquotation=quantityquotation indirectquotationInterbankofferrates interbank offered rates Interestratefutures interest rate futuresInterestrateparitytheory interest rate parity theoryInterestratereturn payoffsInterestrateswaps(IRS)interest rate swapsintermediary  intermediaryinternationalpaymentsystem internationalpaymentsystemIntradaylimit inter-day amountIntra-daytrader daytrader, short term traderIntrinsicvalue impliedvalue JuniormoneydealerLIBOR London Interbank Offered RateLIFFE London Interbank Futures ExchangeLineofcredit credit lineLineoflimit quota limitliquiditypremiumliquidity Risk allowanceLondoninterbankbidrate(LIBID) LondoninterbankdepositrateLongbutterflycallspread buydiskbuyspreadLongbutterflyputspread buydisksellspread Longcurrencyfuturecontract buyforeign exchangefuturescontractLongStraddle buystraddlepart,lowerstraddlepartLongstrangle buystraddlepartwithdifferentperformancepricesMargincall additionalmargin Margintrading margin tradingMarktomarket adjust to the market priceMarketorder market price instruction sheetMismatchgapping expiration gapMoneymarketswapIRS holding time shorter than two years Moneyposition currency partlongposition buy super or long part (the amount borrowed is greater than the loan) Monthlylimit monthly limitmultiplecurrencyreservesystemmultiple currency reserve system NasdaqIndexFuture NasdaqIndexFutureNearthemoney price nearNegativeyieldcurve negativeyieldcurveNegotiablecertificateofdeposit negotiable time deposit Netmismatch netgapNikkiindexfuture Nikkei index futuresNominalinterestrate nominalinterestrate nominal interest rate (coupon or mutually agreed interest rate, minus inflation equals real interest rate) Nonearningasset NonprofitableliabilityNonprofitableliabilityNonreferencecurrency quotationcurrencyNotionalamount commitmentamountOdddate (Oddmaturity) Off-balanceSheet off-balance sheet off-balance sheet trading instruments (derivative financial products) Offrate lending rate (or selling price, exchange rate) Offset hedging, rolling Openspotnetposition spot net positionOperationrisk operationriskOptiondateforward forward rate on any chosen delivery dateOption optionOptionsreserve optionreserve amount Order trade instruction sheetOutofthemoney(OTM) out-of-the-moneyOutrightforward forward direct rateOverthecounter store market, over the counter marketOveralllimit total combined limitOverbought  nbsp;Buy overnight(O/N) Overnight split for same-day deliveryOversold Sell over Par Offer the same interest rate as the quoted currency, exchange rate of zeroParvalue Par value (with facevalue)Place(give)USD Credit Positionlimit the amount of foreign exchange parts Positionsheet trading parts registerPositiontrader long term traderPosition partPositiveyieldcurve positive yield curvePremiumpaydate royalty delivery datePremium uplift, royalty Presentvalue presentvaluePricerisk price-specieflowmechanism price and gold inflow functional theoryPrimarymarket primary market, issue marketPrincipal principal Putoption selling rightsQuantityquotation quantityquotation methodQuitrightbuy buyout (commercial promissory notes), ex-rightsQuitrightsale sellout (commercial promissory notes), ex-rightsQuotingbank quotingbank quotingparty quotersRatesensitiveasset interest-rate sensitive assetRealinterestrate real interest rateReciprocalrelationship inverse relationshiprediscount rediscount referencecurrency quotedcurrencyRegisteredform registeredformRepurchaseagreement withbuybackagreement (commercial promissory note)Reserve reservedamountReverseagreement withsaleback Agreement (commercial promissory notes)Riskdiversification Risk diversification principleRiskexposure Risk exposureRiskpoint Risk pointsriskpremium Risk allowanceRollback Early delivery Rollingdownstrategy downrollingstrategyRollover rolloverdeliveryrulesofthegoldstandardgame gold standard system implementation rulesS&PIndexfuture Standard & Poors Index futures contract Scaleorder segmentedtradingindicationslipSecondarymarket submarketSellcall sellbuyrightSellnear/buyfardateSell near-term quoted currency, buy forward quoted currencySellspot/buyforward sell immediate quoted currency, buy forward quoted currency Seniormoneydealer senior currency trader Sensitivitypoints sensitivity Settingrate interest rate benchmark Settlementaccount current account Settlementlimit  nbsp;delivery clearing amountSettlementrisk delivery clearing riskShortbutterflycallspread selling dish buy option spreadShortbutterflyputlspread selling dish sell option spread Shortcurrencyfuturecontract sellforeign exchangefuturescontractShortposition selloverorshortpart(theamountofcreditisgreaterthanborrowed)Shortsale sellshortstraddle sellstraddlepart,upstraddlepart Shortstrangle sell straddle parts with different performance pricesSIBOR Singapore Interbank Offered RateSIMEX Singapore Futures ExchangeSmallamount Small Sovereignrisk jurisdictional risk (government regulation) specialdrawingright(SDR) specialdrawingrightsSpeculator speculatorSpotagainstforward spotforwardexchangetradeSpotdate spotdeliverydaySpottransaction spot Foreign exchange transactionsSpot spot transactions, spot deliveryspot/1week spot after a week of deliverySpot-next the next two business days of delivery of the overnight splitSpot-week the next two business days of delivery of the week splitSpread spreadSquare closeout or Standardamount standard trading unitStockindexfutures stock index futuresStoplosslimit stop-loss point, stop-loss pointStraddle same-price trading optionstrikeprice performance price Swaprate( orswappoint )Swaptransaction SwaptransactionTake quoters to offerrate from the offer bank to buy the quoted currencyTake(pay)USD borrow, buy(USD) TermswapIRS held for more than two yearsThepayeroffixed pay fixed interest rate personThereceiveroffixed income fixed rate personTightmoney high priced currencyTimelag time falloutTimeorder  Timevalue Timevalue Time valueTinyamount tinyamountTom Next day deliveryTom-next Next business day delivery of the overnight splittotalVARavailable TotalVARauthorized amountTradegaps  Contract periodTreasurybill Treasury billsTreasurybills U.S. Treasury bills (within one year)Treasurybonds U.S. long-term bonds (more than ten years)Treasurynotes U.S. medium- and long-term bonds (within ten years) Twowayquotation two-way bidUncoveredinterestarbitrage arbitrage operation with exchange rate fluctuation riskUncovered unrolledUnmatched unoffsetunwind unwindvalueatrisk (VAR) valueatriskvalueday deliverydayvolatility volatilityWriter sellerYeartomaturity year to maturityYieldcurve yieldcurveYieldtomaturity yield to maturity ( yield)Zerocouponbond zero coupon bond