A transaction that matures on the day the transaction takes place (Value Today).
Rate at which foreign currency is sold at.
Actual physical exchange of one currency for another to complete a transaction and honour a contract.
The date by which an FX contract between two parties must be settled by the transference of funds between buyer and seller.
Risk associated with the non-settlement of the transaction by the counter party.
A market position where the client has sold a currency not already owned.
Buying to unwind a shortage of a particular currency.
Market slang for Singapore Dollar.
More potential sellers than buyers, which creates an environment where rapid price falls are likely.
The most common foreign exchange transaction. A transaction that occurs immediately with the transfer of funds to settle the contract usually taking place within two business days after the deal has been agreed. It is used when clients need to buy and sell currency and transfer it within the shortest period possible.
The overnight swap from the spot date to the next business day.
The price at which the currency is currently trading in the spot market.
The difference between the bid and ask price of a currency.
A speaker connected to an Interbank broker room that transmits live exchange rate prices so traders know where the bids and offers lie.
An active market that can absorb large volumes of currency without major moves.
Recession or low growth in conjunction with high inflation rates.
Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market.
A term for the Great British Pound.
Market slang for Swedish Krona.
An order to buy or sell a specified amount of currency at a pre-determined exchange rate that is either above or below the rate that prevailed when the order was given. A stop loss order is a 24-hour automated order that is intended to protect the purchase or sale of a currency from adverse movements in the exchange rate. It is a popular market tool as it allows companies or individuals to firstly protect their profits and bottom line positions and secondly, enhance the value of their currency if the exchange rate rallies in their favour. Of course, as with limit orders, this can all be achieved without the need to constantly monitor exchange rates.
A price level at which you would expect buying to take place and is recognised by technical analysts as a price which a currency will struggle to move below, which could result in a rebound of the exchange rate.
The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another.
A price as a differential between two dates of the swap.
Acronym for the Society for World-wide Interbank Telecommunications. A Belgian based company that provides the global electronic network for settlement of most foreign exchange transactions.
Market slang for Swiss Franc.
Statements made normally by the central bank or government ministers designed to bolster market sentiment with respect to a currency.
Is the analysis of market action through charts, past prices and volume trends to forecast future market activity such as price and trend developments. Technical analysis provides details of Support and Resistance levels and can identify changes in currency movements.
An adjustment to price not based on market sentiment but technical factors predicted by technical analysis charting.
The ratio between export and import price indices.
A market in which trading volume is low and in which consequently bid and ask quotes are wide and the liquidity of the instrument traded is low.
Simultaneous buying or selling of a currency for delivery the following day and selling for the next day or vice versa.
A term used to describe a situation where a currency has traded to the top of its range and, as a consequence of market resistance, has failed to break into a new range.
Smallest transaction amount accepted by a financial institution.
The date on which a trade occurs.
The difference between the value of imports and exports. Often only reported in visible trade terms.
The buying or selling of currencies resulting from the acceptance of a price from a dealer.
The calculation of loss or profit resulting from the valuation of foreign assets and liabilities for balance sheet purposes, when consolidating into the base currency.
The total money value of currency contracts traded is calculated by multiplying size by the number of contracts traded.
When both the bid and offer rates are quoted for a foreign exchange transaction.
Selling of assets and or instruments to square a position.