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Value Date

The settlement date of a spot or forward contract; the day on which the two contracting parties exchange the currencies that are being bought or sold. A spot transaction usually has a Value Date two business days from the deal date. However, if a bank or public holiday falls in the country(s) of the foreign currency(s) within this period, then the value date then moves forward one business day. A transaction with a value date beyond two business days would usually be considered a forward contract.

Visible Trade

Trade in merchandise goods as compared with capital flows and invisible trade.

Volatility

A measure of the amount by which a currency s price is expected to fluctuate over a given period.

Vostro Account

A local currency account maintained with a bank by another bank. The term is normally applied to the counter-party's account from which funds may be paid into or withdrawn, as a result of a transaction.

Whipsaw

Term for where a trader takes a position, and then is stopped-out when the market initially moves against him. The market then turns and heads in the direction of the trader s original position. Normally occurs in volatile markets.

Wholesale Price Index

It measures changes in prices in the manufacturing and distribution sector of the economy and tends to lead the consumer price index by 60 to 90 days. The index is often quoted separately for food and industrial products.

World Bank

A bank made up of members of the IMF whose aim is to assist in the development of member states by making loans where private capital is not available.

Yard

Market slang for one billion.

Yield Curve

The graph showing changes in interest rate yield depending on time to maturity. A system originally developed in the bond markets. A positive sloping curve has lower interest rates at the shorter maturities and higher at the longer maturities. A negative sloping curve has higher interest rates at the shorter maturities.

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