search
search
FX DICTIONARY - A |
Glossary of FX terminology
click letters below to jump straight to the relevant section
If you ever felt baffled by the jargon of the money markets, CurrencyPro's FX dictionary will explain it all to you, in clear and precise language.
A must read for FX beginners and SME treasurers.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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.
The underlying assets or instruments traded in the cash market.
Either the African Development Bank or the Asian Development Bank.
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. See peg and crawling peg.
(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.
Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and firms in other countries for goods and services.
Size of exposure of a bank to a single customer for both spot and forward contracts.
Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.
Difference in the value between currencies. Also used to describe percentage charges for conversion from paper money into cash, or from a weak into a strong currency.
Amsterdam Inter-bank Offered Rate.
An option which may be exercised at any time prior to expiration. (European options can only be exercised on a specific date)
The strengthening of a currency in response to market demand rather than through official action.
The simultaneous purchase and sale on different markets of the same or equivalent financial instruments to profit from price or currency differentials.
The range of prices within which there will be no possibility to arbitrage between the cash and futures market.
A unit of account based on the movement of 12 Arab currencies against the USD.
Used in quoting forward "premium/discount". "Five-five around" would mean five points on either side of the present spot value.
IMF terminology for a senior, freely convertible currency.
Enables the holder to convert from one style of option to a different style of option over a preset period of time. Sometimes referred to as either a "call-or-put option" or "chooser option".
An accounting unit for the Asian Clearing Union with the same value as an SDR.
The price at which the currency or instrument is offered.
In the context of foreign exchange is the right to receive from a counter party an amount of currency either in respect of a balance sheet asset (e.g. a loan) or at a specified future date in respect of an unmatched forward Forward or spot deal.
Dividing instrument funds among
markets to achieve diversification or maximum return.
Notice to an option holder, usually by the clearing house of an exchange traded option that the option has been exercised.
The international society of foreign exchange dealers consisting of national "Forex clubs" affiliated on a world wide basis.
An instruction given to a dealer to buy or sell at the best rate that can be obtained.
An order to deal at a specific rate or better.
An option whose strike/exercise price is equal to or near the current market price of the underlying instrument.
Athens Inter-bank Offered Rate
The rate for money lent from day to day on the French money market.
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.
A financial institution or bank authorized to deal in foreign exchange.
A US term for an organization set up by financial institutions agreeing to initiate and receive among themselves electronic transfers of funds authorized by their customers.
A procedure for exchange traded options under which the in-the-money options are exercised on a given date.
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".
| New York | London | Tokyo |
|
Have you dealt with property based founds also? VOTE RESULTS |
|
