Terminología Forex

Términos de transferencia de dinero comúnmente usados ​​Términos de transferencia de dinero comúnmente usados ​​Conozca el idioma El envío de una transferencia de dinero internacional puede parecer complicado, especialmente cuando se trata de terminología diferente en un país extranjero. Si ves una palabra que no entiendes, mira aquí. A medida que se familiarice con el idioma, verá que su comprensión de las transferencias de dinero como un todo mejorará. ABA American Bankers Association Una red de banqueros e instituciones financieras responsables de crear y mantener las mejores prácticas estandarizadas dentro del sistema bancario de los Estados Unidos. ABA Routing Number Un número único de identificación de nueve dígitos asignado a las instituciones financieras dentro de los Estados Unidos por la ABA. Los cuatro primeros dígitos son el símbolo de enrutamiento de la reserva federal, los cuatro siguientes son el identificador de la institución ABA y el último es un dígito de control. También se denomina comúnmente un número ABA, número de tránsito de tránsito (ABA), número de tránsito, número de tránsito bancario o número de tránsito. ACH Automated Clearing House Una red de banca electrónica utilizada para transferencias directas y de débito directo en los Estados Unidos. Transferencia ACH o pago ACH Un depósito directo o transferencia directa procesada en los Estados Unidos a través de la red ACH. Puede tomar hasta tres días laborables para limpiar, dependiendo de los horarios de funcionamiento de los bancos. Múltiples pagos pueden ser procesados ​​en lotes. Similar a BACS en el Reino Unido y EFT en Canadá. También conocido como un depósito directo ACH, pago directo ACH o débito directo ACH. Agente Un intermediario o persona contratada para realizar una transacción en nombre de otra persona o entidad. Apreciación Un aumento en el valor de una moneda. Ask Rate o Ask Price El tipo de cambio al que un proveedor de divisas le venderá una moneda. También conocido como la tasa de oferta. Para un cliente, una tasa de solicitud más baja es preferible, ya que significa que usted pagará menos para comprar una moneda. BACS Bankers Automated Clearing Services Un servicio de compensación de crédito directo y débito directo que se ofrece en el Reino Unido, donde las transferencias tardan tres días hábiles en borrarse. Los pagos BACS son gratuitos o sustancialmente más baratos que los pagos CHAPS, pero pierden popularidad para FPS. BACS es similar a ACH en los Estados Unidos y EFT en Canadá. Moneda base La primera divisa de un par de divisas. El valor de la moneda base se establece en 1 en una cotización y el precio al que se pueden intercambiar las dos monedas se refleja en la moneda de cotización. Por ejemplo, si la tasa EUR / USD es 1,10, entonces 1 euro cuesta 1,10 dólares estadounidenses. Punto de base (pb) Un centésimo de punto porcentual 1 pb 0,01 0,0001. Un punto base es una unidad de medida común en las tasas de cambio y las tasas de interés. A menudo se refiere simplemente a un punto. Cuenta bancaria Una cuenta mantenida en un banco que un cliente puede utilizar para administrar su dinero. La cuenta se puede utilizar para mantener los depósitos de los clientes, así como permitirles hacer pagos. Otras formas de cuentas se mantienen con instituciones financieras no bancarias, tales como cooperativas de ahorro y crédito. Cargo Bancario o Comisión Bancaria Una comisión cobrada por un banco para tener una cuenta o para procesar un pago. Estos incluyen, pero no se limitan a: las tasas de transferencia, los honorarios de cable, y las comisiones de cambio. También conocido como honorarios de servicio. Bank Identifier El componente de un BBAN e IBAN que indica el banco. Un identificador de banco puede ser alfa o dígitos numéricos, o una combinación de los dos. Número de Enrutamiento Bancario o Número de Tránsito Bancario Un número único de nueve dígitos utilizado en Canadá y Estados Unidos para identificar instituciones financieras. Los números de tránsito canadienses empiezan con un cero a la izquierda, seguido por un código de tres dígitos de la institución y un código de sucursal de cinco dígitos. Consulte Número de enrutamiento ABA para la estructura de números de enrutamiento de American. Beneficiario La parte que recibe una transferencia de dinero. También conocido como el destinatario. Número de cuenta bancaria básica de BBAN Un número de cuenta bancaria único reconocido mundialmente que incluye detalles sobre la institución financiera y posiblemente también una ubicación de sucursal y dígitos de verificación. Cada país es responsable de su respectiva estructura BBAN. No todos los países han adoptado el BBAN. Figura grande Se refiere al primer número a la izquierda del punto decimal en una cotización de tipo de cambio, que cambia tan rara vez que los proveedores de FX suelen omitir entre comillas. XE siempre incluye el número entero en un tipo de cambio para mayor claridad y transparencia. Precio de puja El tipo de cambio al que un proveedor de divisas le comprará una moneda. También conocido como la tasa de compra. Para un cliente, una tasa de puja más alta es preferible ya que significa que recibirá más por la moneda que está vendiendo. Diferencia Bid / Ask La diferencia entre la tasa de oferta y la tasa de solicitud. A menudo se refiere como simplemente la propagación. Código BIC de Identificación de Negocio o Banco o Código BIC / SWIFT Un identificador de ocho a once caracteres reconocido a nivel mundial que se utiliza para representar a una institución financiera para transferencias interbancarias. Un BIC contiene un identificador de parte de negocio de ocho caracteres (es decir, el banco) y puede ser seguido por un identificador de sucursal opcional de tres caracteres. El identificador de parte de empresa consta de un código de banco de cuatro caracteres, un código de país de dos letras y un código de ubicación de dos caracteres. SWIFT mantiene una lista de estos identificadores estándar operativos. También conocido como código SWIFT. Consulte la Calculadora IBAN para obtener más detalles. Pago de facturas o pagador de facturas Un servicio estadounidense en el que un titular de una cuenta bancaria puede establecer un destinatario en su sistema bancario en línea para enviarle depósitos directos. BPay Un sistema de pago de facturas australiano en el que un cliente puede pagar un negocio u otra organización que esté registrada en el sistema BPay. El cliente inicia una transferencia de crédito directa a través de su banco, que debe incluir el código de la empresa beneficiaria de la compañía y el número de referencia. Las transferencias BPay se procesan el mismo día si se presentan por el tiempo de corte. De lo contrario, normalmente se procesan el siguiente día laborable. Identificador de sucursal El componente de un BBAN e IBAN que indica una rama específica de una institución financiera. Buy Rate El tipo de cambio al que un proveedor de divisas le comprará una moneda. También conocido como la tasa de puja. Para un cliente, una tasa de puja más alta es preferible ya que significa que recibirá más por la moneda que está vendiendo. Banco Central Un banco o una organización bancaria nacional, generalmente independiente del gobierno, que proporciona servicios bancarios y otros servicios financieros a su país oa sus estados miembros. El banco central ayuda a implementar la política monetaria de los gobiernos, que incluye la fijación de tasas de interés y la emisión de divisas. CHAPS Clearing House Sistema de Pago Automatizado Un servicio en el Reino Unido que proporciona transferencias electrónicas en el mismo día. Los pagos de CHAPS son caros por lo que típicamente se usan para pagos de alto valor donde los fondos deben ser eliminados de inmediato, como la compra de un automóvil nuevo o casa. Si no se requieren fondos inmediatamente, las opciones más rentables son BACS o pagos FPS. Dígito de verificación o suma de comprobación Un dígito de verificación es un número añadido a un número de cuenta bancaria para la detección de errores mediante un cálculo matemático. Ayuda a validar la información y proteger contra errores en el número de cuenta, tales como transposiciones y dígitos faltantes. Los dígitos de verificación son responsabilidad del banco que administra la cuenta. Un dígito de verificación no verifica que el número de cuenta es correcto, sólo comprueba si es posible que el número de cuenta para una institución financiera particular. Cheque o cheque Un documento que le indica a una institución financiera que pague a un destinatario una cantidad especificada de una cuenta en particular. La parte que escribe el cheque debe tener una cuenta en la institución financiera de la cual está solicitando el pago y debe firmar el cheque para hacerlo válido. Comisión Una tarifa o cargo por servicio impuesto por una institución financiera o un proveedor de FX para llevar a cabo las instrucciones de un cliente, que también puede implicar asesoramiento dado por la institución financiera o el proveedor de FX. Las comisiones pueden ser un cargo a tanto alzado o un valor porcentual del contrato en cuestión. Confirmación Un documento escrito (electrónico) que verifica la finalización de una transacción. Incluye detalles como fechas, comisiones y / o honorarios. Las condiciones de liquidación y el tipo de cambio. Moneda del contador La segunda moneda en un par de divisas. Es el precio para comprar una unidad de la moneda base. También conocido como la moneda de la cotización. Tarjeta de crédito Un método de pago en el que un tarjetahabiente paga por bienes y servicios prestando al emisor de la tarjeta, con la promesa de pagar al emisor de la tarjeta por todos los fondos adeudados en una fecha determinada. Transferencia de Crédito Una transferencia de dinero iniciada por un titular de cuenta bancaria para ser enviada directamente a la cuenta de un destinatario. Transferencia transfronteriza Un EFT que envía fondos de una cuenta en un país a otro. También conocido como transferencia internacional. Cross Rate Un tipo de cambio entre dos monedas que se calcula sobre la base de una tercera moneda. A menudo se refiere a un tipo de cambio que no incluye una moneda nacional del país. Las divisas de monedas de divisas se cotizan en pares, como EUR / USD o USD / JPY. La primera moneda se conoce como la moneda base. Mientras que el segundo se llama la moneda del contador o de la cotización. La moneda base es la base para la compra o la venta. Riesgo de divisas Riesgo asociado a fluctuaciones, en particular una depreciación, en el valor de una moneda. Tarjeta de débito Una tarjeta que debita la cantidad adeudada directamente de una cuenta bancaria. Se utiliza para retirar dinero en efectivo o para procesar un EFT a través de banca en línea. Transferencia de Débito Transferencia de dinero iniciada por la institución financiera de un destinatario. El banco de receptores ordena al banco del ordenante que envíe fondos a la cuenta de destinatarios de la cuenta de los pagadores. Estas instrucciones son pre-aprobadas por el pagador. Los métodos de transferencia de débito incluyen los cheques. Borradores o débitos directos electrónicos. Entrega El intercambio de ambas monedas negociadas por el comprador y el vendedor. En el caso de un cliente que reserva una transacción a través de un proveedor de FX. Significa que el cliente ha pagado al proveedor y el proveedor ha pagado al destinatario. Depósito Para poner dinero en una cuenta bancaria. El término también se refiere a un porcentaje de un contrato que se debe proporcionar como garantía en algunos contratos, como un contrato a término. Depreciación Una disminución en el valor de una moneda. País de destino El país en el que se mantiene la cuenta bancaria a la que se envía un EFT. Débito directo Un EFT que es iniciado por el destinatario del pago. El destinatario envía las instrucciones a la cuenta desde la cual se retira el pago. Las instrucciones preautorizadas deben ser proporcionadas en la cuenta antes de que los remitentes instituciones financieras que procesan la transferencia. Crédito directo o depósito directo Un EFT iniciado por el titular de la cuenta bancaria para ser enviado directamente a una cuenta de destinatario. También conocido como transferencia de crédito. Borrador Semejante a un cheque, pero los fondos son pre-compensados ​​y el titular de la cuenta no tiene que firmar un borrador. Transferencia Electrónica de Fondos de EFT Un término utilizado para describir cualquier forma de transferencia de dinero que implique el procesamiento electrónico, no se realizan cheques físicos, giros, giros postales o dinero en efectivo. Estos pueden incluir débito directo. deposito directo. Crédito y transferencias de débito, así como cables. EFT es también un término utilizado en Canadá para referirse a ACH o BACS. Asociación Europea de Libre Comercio de la AELC Organización intergubernamental que promueve el libre comercio y la integración económica de sus 4 Estados miembros: Islandia, Liechtenstein, Noruega y Suiza. UE Unión Europea Una unión política y económica de 28 países en Europa. El objetivo actual de la UE es desarrollar un mercado único que unifique las normas sobre asentamiento, empleo y comercio y garantice la libre circulación de personas, capitales, bienes y servicios dentro de la región. Sólo algunos de sus Estados miembros utilizan el euro como moneda. Zona Euro Los países de la UE que han adoptado el euro como su moneda oficial. Actualmente se compone de 19/28 Estados miembros de la UE. Tipo de cambio Indica la cantidad de moneda de cotización que costaría comprar una unidad de la moneda base. A menudo se llama tasa de cambio, tasa de cambio o tasa. Cuota Un cargo impuesto por una institución financiera o un proveedor de divisas para cambio de divisas o transferencia de dinero. También se conoce como una tarifa bancaria o cargo, honorario de servicio y tasa de transferencia. Divisas (FX o Forex) El comercio de una moneda por otra. Tipo de cambio (FX) Indica la cantidad de la moneda de cotización que costaría comprar una unidad de la moneda base. También se refiere más simplemente a la tasa de cambio o tasa. Foreign Exchange (FX) Proveedor Una empresa que ofrece intercambio de divisas y pagos internacionales. Aunque puede ser un banco, el término normalmente se refiere a instituciones financieras no bancarias. La mayoría de los proveedores de FX también se centran en la conversión de divisas con la intención de entregar un pago a un destinatario. A diferencia del comercio especulativo. Contrato a término Un contrato para el cual el comprador y el vendedor están de acuerdo con un tipo de cambio de hoy, pero la fecha de liquidación es más de dos días hábiles en el futuro. Si el precio del par de divisas cambia entre el momento en que se formaliza el contrato y cuando se fija, las partes aún están comprometidas con la tasa especificada en el contrato. Forward Points Refiere a los puntos que se suman o restan al tipo de cambio actual para obtener el precio o tasa forward. Los puntos forward se basan en una fórmula estándar de la industria que tiene en cuenta la diferencia en las tasas de interés entre las dos monedas entre el momento de comprometerse con el contrato y su fecha de vencimiento. FPS Servicio de pagos más rápido Servicio de compensación de pagos para transferencias directas de crédito y débito directo en el Reino Unido. Normalmente, el destinatario puede acceder a los fondos el mismo día en que se inicia la transferencia. Estas transferencias cuestan aproximadamente lo mismo que los pagos de BACS. FPS requiere que los bancos emisores y receptores sean miembros de la red FPS para enviar un pago. Cobertura Una cobertura es una inversión que se utiliza para compensar ganancias potenciales o pérdidas asociadas con el riesgo de otra inversión. Las empresas a menudo utilizan un contrato a plazo para protegerse de las fluctuaciones de las tasas de cambio en el futuro. IBAN International Bank Account Number Un número de cuenta que contiene información de cuenta bancaria única en un formato estandarizado para mejorar la validación al hacer una transferencia de dinero internacional. Consta de un código de país de dos letras, dos dígitos de verificación y un BBAN. Un IBAN puede contener hasta treinta y cuatro caracteres alfanuméricos dependiendo de la estructura acordada por el país. Consulte la Calculadora IBAN para obtener más detalles. IBAN Registry (también conocido como SWIFT IBAN Registry) El registro de IBAN de SWIFT es considerado el registro oficial para el IBAN compatible con ISO. Interac e-Transfer Servicio bancario canadiense que permite que cualquier persona con una cuenta en una institución financiera participante envíe una transferencia directa a un destinatario de forma segura a través de su dirección de correo electrónico. El destinatario recibe una notificación por correo electrónico para la transferencia pendiente que ordena al destinatario depositar los fondos directamente en su cuenta a través de sus respectivas banca en línea. Transferencia interbancaria La transferencia de fondos de una cuenta en un banco a otro en un banco diferente. Transferencia Internacional Un EFT que transfiere fondos de un país a otro. También conocida como transferencia transfronteriza. Transferencia intrabancaria La transferencia de fondos de una cuenta a otra dentro del mismo banco. También conocido como una misma transferencia bancaria. ISO Organización Internacional de Normalización Una organización independiente y no gubernamental que trabaja en conjunto con SWIFT para garantizar IBAN s están estandarizados. Tasa inversa o tipo de cambio inverso Una cotización para la cual se cambia la moneda base y la moneda contable. Una tasa inversa se calcula dividiendo una por el tipo de cambio. Orden límite Una transacción en la que el cliente establece el precio y la orden está abierta hasta que el mercado alcance ese precio. En ese momento, la orden se llena como una transacción al contado. Margen Se requiere un depósito en los contratos a plazo como garantía para cubrir el riesgo asociado con movimientos potenciales del tipo de cambio. También se utiliza para referirse a la marca en una transacción. Llamada de margen Una llamada de un proveedor de FX para aumentar el requisito de depósito de margen de una cuenta. La llamada se realiza normalmente después de que una moneda se deprecie significativamente en valor. Depósito de margen Se requiere un depósito en los contratos a plazo como garantía para cubrir el riesgo asociado con movimientos potenciales del tipo de cambio. Aumento adicional en el precio o el tipo de cambio de una moneda. Así es como los bancos y los proveedores de divisas suelen obtener un beneficio cuando se trata de divisas. Pagos en masa La capacidad de enviar pagos a muchos destinatarios a la vez. Vencimiento (Fecha) La fecha en que se debe liquidar el contrato. Véase también fecha de liquidación. Mid-Market Rate El punto medio entre la tasa de compra y la tasa de venta de los mercados de divisas globales. Giro Postal Un certificado que actúa como un cheque. Que un destinatario puede intercambiar por una cantidad especificada de dinero a la carta a cambio. Los giros postales son a menudo utilizados por personas que no poseen una cuenta de chequing. Transferencia de dinero Un pago que no implica dinero en efectivo. Los métodos incluyen: alambre. EFT. borrador. Y comprobar. giro postal. MSB Money Services Business Una empresa no bancaria o una institución financiera que procesa transferencias de dinero. Los MSBs pueden no tener depósitos pero están sujetos a muchas de las mismas regulaciones que los bancos. Tarifa de oferta La tasa a la que un proveedor de divisas le venderá divisas. También conocido como la tasa de solicitud. Para un cliente, una tasa de solicitud más baja es preferible, ya que significa que usted pagará menos para comprar una moneda. Beneficiario La parte que recibe una transferencia de dinero. Para transferencias de dinero y FX. Normalmente conocido como el receptor o beneficiario. PIN Número de identificación personal Una contraseña, a menudo de tres a ocho caracteres de longitud para los sistemas financieros. Punto de Pip en Porcentaje o Porcentaje en Punto o Precio Punto de Interés Unidad de cambio en un tipo de cambio. Un pip es igual a un punto para la mayoría de los pares de divisas principales, ya que tienen un precio de cuatro cifras decimales en el mercado de divisas. El yen japonés es una excepción ya que tiene un precio de sólo dos decimales. Punto Una unidad de medida común en tipos de interés y tipos de interés, un punto es un centésimo de punto porcentual 1bp 0.01 0.0001. Técnicamente llamado un punto base, pero normalmente se refiere simplemente a un punto. Moneda de cotización La segunda moneda en un par de divisas. Es el precio para comprar una unidad de la moneda base. También conocido como la moneda de contador. Tarifa El precio de una moneda en términos de otra moneda. También conocido como tipo de cambio. Destinatario La parte que recibe la transferencia de dinero. También conocido como el beneficiario. Número de referencia Un identificador numérico o alfanumérico único utilizado para realizar el seguimiento de una transferencia de dinero. Remesa Una transferencia de dinero enviada a casa por alguien que está trabajando en el extranjero. La transferencia suele implicar el intercambio de fondos del país extranjero en el que la persona está trabajando a la moneda nacional de su país de origen. Routing Number Número utilizado para redirigir los pagos dentro de una institución financiera. También conocido como número de enrutamiento ABA en los Estados Unidos, número de tránsito en Norteamérica, código de clasificación en el Reino Unido e Irlanda. Transferencia bancaria igual La transferencia de fondos de una cuenta a otra dentro del mismo banco. También se conoce como transferencia intra bancaria. Vendedor La parte que vende un par de divisas en una transacción. Remitente La persona o empresa que inicia una transferencia de dinero. Área Única de Pagos en Euros SEPA Creado para facilitar las transferencias transfronterizas de euros dentro de la UE y la AELC. Con SEPA, ahora es posible gestionar todos los pagos en euros desde una única cuenta bancaria dentro de la región. Aunque todavía pueden cobrar una cuota de transferencia por los pagos SEPA, los bancos no están autorizados a hacer deducciones de la cantidad transferida. Transferencias SEPA Las transferencias SEPA son transferencias directas de crédito directo y de euro en la UE. Los pagos SEPA se están moviendo hacia solamente requerir un IBAN para procesar y toman típicamente uno a dos días hábiles para despejar. Cuota de servicio Cuota cobrada por una institución financiera o proveedor de FX relacionado con la posesión de una cuenta o para procesar una transferencia de dinero. Estos incluyen, pero no se limitan a: tasas de transferencia, tarifas de cable y comisiones. Los bancos suelen referirse a estos como cargos bancarios o tasas bancarias. Fecha de liquidación La fecha en que se fija un contrato, es decir, todos los pagos acordados en el contrato han sido enviados. Ver también fecha de vencimiento. Código de clasificación Un código numérico de seis dígitos utilizado por los bancos irlandeses y británicos para encaminar los pagos dentro de esos países. Los códigos se dividen en tres grupos de dos y contienen detalles sobre el banco y la rama. Similar a un número de tránsito en América del Norte. Negociación especulativa o negociación especulativa Ingresar a un contrato de divisas con la intención de aprovechar el movimiento de un valor monetario. Contrato a la vista o transacción a la vista Un contrato de divisas basado en la tasa a la vista y la fecha de liquidación es de dos días hábiles. Precio spot o precio spot El precio actual de mercado para un par de divisas. Spread La diferencia entre la tasa de puja y la tasa de solicitud de un par de divisas. También se conoce como la propagación bid-ask. SWIFT La Sociedad para la Telecomunicación Financiera Interbancaria Mundial Una organización cooperativa que promueve la estandarización de las transacciones financieras. Código SWIFT Un identificador reconocido a nivel mundial de ocho a once caracteres utilizado para representar a una institución financiera para transferencias interbancarias. Un código SWIFT contiene un identificador de partido de ocho caracteres (es decir, el banco) y puede ser seguido por un identificador de sucursal opcional de tres caracteres. El identificador de parte de empresa consta de un código de banco de cuatro caracteres, un código de país de dos letras y un código de ubicación de dos caracteres. SWIFT mantiene una lista de estos identificadores estándar operativos. También conocido como código BIC o BIC o Código BIC / SWIFT. Consulte la Calculadora IBAN para obtener más detalles. Pago por terceros Un pago que involucra a un tercero (es decir, no al cliente ni al receptor). Puede implicar que un tercero procese o pague la transacción. Cargo por transferencia asociado a una transferencia de dinero. Las tarifas de transferencia son independientes de las comisiones de FX y pueden aplicarse a la misma transferencia de moneda. Número de tránsito Un número único asignado a las instituciones financieras dentro de América del Norte para identificar al banco y la sucursal para dirigir correctamente los pagos a sus destinos apropiados dentro de Canadá y los Estados Unidos. Similar al código de clasificación utilizado en Inglaterra e Irlanda. Vea el número de enrutamiento de ABA para la estructura de número de tránsito estadounidense y el número de tránsito bancario para la estructura de número de tránsito canadiense. Transparencia El concepto de un cliente que puede ver el desglose de los costes asociados a una transacción. Fecha de valor Una fecha futura para la que se establece un precio para una transacción de divisas. Para contratos al contado. La fecha de valor es típicamente la misma que la fecha de liquidación. Transferencia bancaria o por cable Un EFT seguro que requiere un código SWIFT o IBAN que se procesa a través de la red SWIFT. Los cables son una forma más cara de EFT que se puede enviar a nivel nacional o internacional. Los fondos están garantizados y no pueden ser retirados del mercado. Por lo general, tomar un par de días para borrar, con los cables internacionales tomar aún más en función de cuántos bancos están involucrados en la transferencia. Forex Glosario Los términos más importantes relacionados con el comercio de Forex se presentan en este glosario: ADX (Average Directional Index) Indicador técnico que mide la fortaleza de una tendencia. Pregunte (Oferta) Precio de la oferta, el precio que usted compra. ATR (Average True Range) Un indicador técnico estándar que mide la volatilidad de los pares de divisas. Vea una guía detallada sobre ATR. Aussie Un nombre de argot de la divisa para el dólar australiano. Tasa Bancaria La tasa porcentual a la cual el banco central de un país presta dinero a los bancos comerciales del país. Ver tabla de tasas de interés de los bancos centrales. Precio de puja de la demanda, el precio que usted vende. Broker El organismo participante en el mercado que actúa como intermediario entre los comerciantes minoristas y las grandes instituciones comerciales. Consulte la lista completa de corredores de Forex. Cable A Los comerciantes de Forex argot palabra GBP / USD par de divisas (Libra de Gran Bretaña frente al dólar de EE. UU.). Llevar el comercio en Forex, manteniendo una posición con un interés positivo a un día en la esperanza de obtener beneficios sin cerrar la posición con el fin de obtener de los bancos centrales la diferencia de tasas de interés. Vea la estrategia de carry trade. CCI (Commodity Channel Index) Un indicador técnico cíclico que se utiliza a menudo para detectar estados de sobrecompra / sobreventa del mercado. CFD Un Contrato por Diferencia mdash instrumento comercial especial que permite la especulación financiera sobre acciones, commodities y otros instrumentos sin realmente comprar o vender esos activos. Vea la lista de corredores CFD. Commission Broker comisiones por manejo de operaciones. Índice de Precios al Consumidor CPI mdash una medida estadística de la inflación basada en cambios de precios de un conjunto específico de bienes. EA (Expert Advisor) o Robot Un script automatizado que utiliza el software de la plataforma de negociación para gestionar posiciones y pedidos automáticamente sin (o con poco) control manual. Consulte a nuestros asesores expertos gratuitos para MetaTrader. ECN Broker Un tipo de empresa de corretaje de Forex que proporciona a sus clientes acceso directo a otros participantes en el mercado Forex. Los corredores de ECN no desalientan el scalping, no negocian contra el cliente, no cargan la extensión (el spread bajo se define por las tarifas actuales del mercado) sino que cargan comisión por cada orden ejecutada. Vea la lista de corredores ECN. BCE (Banco Central Europeo) El principal órgano regulador del sistema financiero de la eurozona. Elliott Waves Un conjunto de principios para el análisis gráfico basado en patrones de 5 ondas y 3 ondas. Vea nuestros videos de análisis de Elliott Wave diarios. Fed (Federal Reserve) El principal organismo regulador del sistema financiero de los Estados Unidos de América, cuya división mdash mdash (Comité Federal de Mercado Abierto) mdash regula, entre otras cosas, las tasas de interés federales. Fibonacci Retracements Niveles con una alta probabilidad de ruptura de tendencia o rebote, calculados como los 23,6, 32,8, 50 y 61,8 del rango de tendencia. Vea la calculadora de Fibonacci. Fibra A Los comerciantes de Forex palabra de jerga palabra EUR / USD par de divisas (euro vs. dólar estadounidense). Plano (Cuadrado) Estado neutral cuando todas sus posiciones están cerradas. Apalancamiento flotante Un apalancamiento que cambia dependiendo del tamaño total de las posiciones abiertas. Análisis fundamental El análisis se basó únicamente en noticias. Indicadores económicos y eventos globales. Gap Una diferencia entre los períodos anteriores de cierre de precio y los próximos períodos de precio abierto. En Forex, por lo general sólo ocurre durante los fines de semana mdash entre los viernes cerca y el lunes precio abierto. Ver la estrategia de comercio de la brecha. PIB (Producto Interno Bruto) Una medida de la renta nacional y la producción para la economía del país es uno de los indicadores fundamentales más importantes en Forex. GTC (Good Til Cancelled) Una orden de compra o venta de una moneda a una tasa fija o peor. El orden está vivo (bueno) hasta su ejecución o cancelación. Hedging Mantener una posición de mercado que asegura las posiciones abiertas existentes en la dirección opuesta. Jobber Una palabra de argot para un comerciante que está apuntado hacia el beneficio rápido pero pequeño ya corto plazo del comercio intraday. Jobber rara vez deja posiciones abiertas durante la noche. Kiwi Un nombre del argot de la divisa para el dinero en circulación de Nueva Zelandia mdash el dólar de Nueva Zelandia. Indicadores principales Un índice compuesto (año 2010 100) de los diez indicadores macroeconómicos más importantes que predice la actividad económica futura (6-9 meses). Publicada mensualmente por el Conference Board. Orden de Límite Una orden para un corredor de comprar un lote por precio fijo o menor o vender un lote por precio fijo o mejor. Este precio se denomina precio límite. Liquidez Una medida de los mercados que describe la relación entre el volumen de negociación y el cambio de precio. Long Una posición que está en una dirección Buy. En Forex, la moneda primaria cuando se compra es larga y otra es corta. Pérdida Pérdida de cierre de una posición larga a una tasa inferior a la apertura o al cierre de una posición corta con una tasa más alta que la apertura. La pérdida también puede ocurrir si el beneficio de un cierre de posiciones fue menor que la comisión de corredores en él. Lote Una cantidad definida de unidades o cantidad de dinero aceptada para el manejo de operaciones (por lo general, es un múltiplo de 100). Margen Dinero que el inversionista necesita para mantener en una cuenta de corredores para ejecutar operaciones. Margen proporciona las posibles pérdidas que pueden ocurrir en el comercio de margen. Cuenta de margen Una cuenta que se utiliza para mantener a los inversores depositado dinero para el comercio. Llamada de margen A los corredores exigen depositar más margen de dinero en la cuenta de margen cuando su tamaño cae por debajo de un mínimo determinado. Orden de mercado Una orden para comprar o vender un lote a una tasa de mercado actual. Precio de mercado Una tasa actual, en la que la moneda se cotiza en el mercado. Martingale Una estrategia de dimensionamiento de posición que implica duplicar la apuesta después de cada pérdida. Vea el sistema comercial de Martingale. Momentum Una medida de la capacidad de la moneda para moverse en una dirección dada. Promedio móvil (MA) Uno de los indicadores técnicos más básicos. Muestra la tasa media calculada sobre una serie de periodos de tiempo. El promedio móvil exponencial (EMA), el promedio móvil ponderado (WMA), el promedio móvil adaptativo (AMA), etc. difieren por el modo de las tasas de pesada y los períodos en el cálculo. Oferta (preguntar) Una tarifa de la oferta mdash la tarifa que usted compra para. Posición abierta (Comercio) Una posición sobre la compra (larga) o venta (corto) de un par de divisas. Orden Una orden para que un corredor compre o venda una divisa a una determinada tasa. Módulo de Gestión de Asignación de Porcentaje (PAMM) Un sistema de corretaje que permite a los inversionistas invertir con los comerciantes y permite a los comerciantes administrar los fondos de los inversores utilizando la plataforma de corredores. Consulte la lista de corredores con intermediarios PAMM. Punto de pivote Un punto de apoyo / resistencia primario calculado sobre la base de las tendencias anteriores, Alto, Bajo y Cerrar tasas. Consulte la calculadora de puntos de pivote. Pip (Punto) El último dígito en un tipo de cambio (por ejemplo, para EUR / USD, 1 punto 0.0001). Ganancia (ganancia) Una cantidad positiva de dinero ganado para cerrar la posición. Valor del Principal La cantidad inicialmente invertida de dinero. QE (Quantitative Easing) Una política monetaria empleada por los bancos centrales. Se trata de comprar y mantener los activos financieros de las instituciones financieras del país para proporcionar suministro de dinero y mantener los precios de los activos financieros de la caída. Ganancia / pérdida realizada Una ganancia o pérdida de una posición ya cerrada. Resistencia Un nivel de precios donde una tendencia alcista se detiene. Su incumplimiento puede dar lugar a un importante aumento de precios. RSI (Relative Strength Index) Indicador técnico que mide el poder de un movimiento direccional de precios comparando las porciones alcista y bajista de la tendencia. Scalping Un estilo de comercio notable por un gran número de posiciones que se abren para los beneficios muy pequeños y de corto plazo. Vea la estrategia comercial del scalping. Posición cerrada (cerrada) Posición cerrada, para la que se han realizado todas las transacciones necesarias. SL Ver la orden de Stop-Loss abajo. Slippage Ejecución de una orden a una tasa diferente a la esperada (ordenada). The main reasons for slippage are fast market, low liquidity, and poor execution quality by broker. Spread A difference between Ask and Bid rates of a currency pair. Standard Lot 100,000 units of the base currency of a currency pair you are buying or selling. Stop-Limit Order An order to sell or buy a lot at a certain rate or worse after it first reaches some opposite price level. It is a combination of a stop-order and a limit-order. Stop-Loss Order An order to close a position when the market reaches a certain rate. Normally, it is used to avoid extra losses when the market moves in the opposite direction. Sometimes, it can be used to lock in some amount of profit ( See Trailing Stop-Loss below ). STP (Straight Through Processing) A type of order processing that does not require any manual intervention and is fully automatic. In fact, 90 of all online Forex brokers support order handling with STP. Support A price level where a downtrend stalls. Its breach can lead to a significant price decline. Swap An overnight payment for holding a position in Forex. Since you are not physically receiving the currency you buy nor delivering the currency you sell, the broker should pay or charge an interest rate difference between the pairs two currencies. Swaps can be be negative or positive. Take-Profit Order An order to close a position when the market reaches a certain price. It is used to realize your profit. Technical Analysis A analysis method based only on the technical market data (rates, time, and volume) with the help of various technical indicators. TP See Take-Profit Order above . Trailing Stop-Loss A stop-loss level that is moved closer to the current market rate as the positions loss decreases or its profit increases. See this post on using a trailing stop in MetaTrader 4. Trend A markets direction established under an influence of various factors. Unrealized (Floating) Profit/Loss Profit/loss on your open positions. Usable Margin (Free Margin) Amount of money in a margin account that can be used for trading. Used Margin Amount of money in a margin account already used to hold open positions. Volatility A statistical measure of the number of price changes for a given currency pair in a given period of time. VPS (Virtual Private Server) A virtual environment hosted on a dedicated server that can be used to run the programs independent on the users PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions. See the list of Forex VPS providers. VSA (Volume Spread Analysis) A chart analysis method that focuses on the trading volume and the price range. Forex Glossary - a unique guide for the study of foreign currency trading and investing, with an extensive range of definitions, cross-references between related terms, informative sidelights, hyperlinked keywords and numerous examples. The Forex Glossary currently contains 1200 terms relating to online currency trading, financial and investment and is regularly updated. Using the Glossary You can search a genetic term in two different ways pick from an Alphabetical List of Terms or search the database. Feedback / Corrections/ Additions This online glossary is open to user submissions. If you wish to make a correction, add an entry, or give feedback, please go to Suggest a Term or Report a bug forms Recently updated terms About Forex Forex, or FX, stands for the foreign exchange market. This is a 24-hour market in which currencies are traded in cash, which is known as a spot market. There is no central, standard trading center, such as, a stock exchange. Instead, trade is conducted quotover-the-counterquot via an international network of dealers. Until recently, the forex market was confined to larger traders: major, international commercial and investment banks international corporations international money brokers currency traders. When the United States went off the gold standard in 1971, investors immediately recognized new opportunities for making profits. Every year, more companies start up that cater to smaller institutions and investors so they may participate in spot forex trading. A prime factor to take into account before participating in the spot market is your temperament. A risk-aversive customer is not suitable for this marketplace. You should consider not only your experience in the investment world, but your objectives, and your capacity to absorb financial losses. Certainly, you should never invest any amount of money you cannot afford to lose. Search terms Statistics 7 october 2016 Dictionaries: 5 Terms: 709 Recently updated dictionaries Last SearchesForex Glossary Aggregate Total amount of exposure a bank has with a customer for both spot and forward contracts. American Option An option which may be exercised at any valid business date throughout the life of the option. Appreciation Describes a currency strengthening in response to market demand rather than by official action. Arbitrage A risk-free type of trading where the same instrument is bought and sold simultaneously in two different markets in order to cash in on the difference in these markets. Around Used in quoting forward premium / discount. Ask Price Ask is the lowest price acceptable to the buyer. Asset In the context of foreign exchange it is the right to receive from a counterparty 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 or spot deal. At Best An instruction given to a dealer to buy or sell at the best rate that is currently available in the market. At or Better An order to deal at a specific rate or better. At Par Forward Spread When the forward price is equivalent to the spot price. At the Price Stop-Loss Order A stop-loss order that must be executed at the requested level regardless of market conditions. At-the-Money An option whose strike/exercise price is equal to or near the current market price of the underlying instrument. Auction 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. Average Rate Option 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. Back Office Settlement and related processes. Back to Back (1) Transaction where all the obligations and liabilities in one transaction are mirrored in a second transaction. (2) Transaction where a loan is made in one currency in one country against a loan in another country in another currency. Balance of Payments A systematic record of the economic transactions during a given period for a country. (1) The term is often used to mean either: (i) balance of payments on current account or (ii) the current account plus certain long term capital movements. (2) The combination of the trade balance, current balance, capital account and invisible balance, which together make up the balance of payments total. Prolonged balance of payment deficits tend to lead to restrictions in capital transfers, and or decline in currency values. Balance of Trade The value of exports less imports. Invisibles are normally excluded, and is otherwise referred to as mercantile or physical trade. Figures can be quoted on FoB/ FaS. customs cleared, or FoB export. Band The range in which a currency is permitted to move. A system used in the ERM. Bank Line Line of credit granted by a bank to a customer, also known as a line. Bank Notes Bank notes are paper issued by the central or issuing bank and are legal tender, but are not usually considered to be part of the FX market. However bank notes can be converted, in some counties, into FX. Bank notes are normally priced at a premium to the current spot rate for a currency. Bank Rate The rate at which a central bank is prepared to lend money to its domestic banking system. Barrier Option A family of path dependent options whose pay-off pattern and survival to the expiration date depend not only on the final price of the underlying currency but also on whether or not the underlying currency breaks a predetermined price level at any time during the life of the option. See Down and Out call/put, Down and in call/put, Up and out call/put, Up and in call/put. Base Currency The currency in which the operating results of the bank or institution are reported. Base Rate A term used in the UK for the rate used by banks to calculate the interest rate to borrowers. Top quality borrowers will pay a small amount over base. Basis The difference between the cash price and futures price. Basis Convergence The process whereby the basis tends towards zero as the contract expiry approaches. Basis Point One per cent of one per cent. Basis Price The price expressed in terms of yield maturity or annual rate of return. Basis Trading Taking opposite positions in the cash and futures market with the intention of profiting from favorable movements in the basis. Basket A group of currencies normally used to manage the exchange rate of a currency. Sometimes referred to as a unit of account. Bear A person who believes that prices will decline. Bear Market A market in which prices decline sharply against a background of widespread pessimism (opposite of Bull Market). Bid Price Bid is the highest price that the seller is offering for the particular currency at the moment the difference between the ask and the bid price is the spread. Together, the two prices constitute a quotation the difference between the two is the spread. The bid-ask spread is stated as a percentage cost of transacting in foreign exchange. Big Figure Refers normally to the first three digits of an exchange rate that dealers treat as understood in quoting. For example a quote of 30/40 on dollar mark could indicates a price of 1.5530/40BIS: Bank of International Settlement. Bilateral Clearing A system used where foreign currency is limited. Payments are usually routed through the central banks, and sometimes require that the trade balance is equaled every year. Binary Options A binary call (or step up) is like a standard European call option except that the pay off at expiry is fixed at one unit of the counter currency, if the call expires in the money. Black-Scholes Model An option pricing formula initially derived by Fisher Black and Myron Scholes for securities options and later refined by Black for options on futures. It is widely used in the currency markets. Booked The recording of a transaction outside the country where the transaction is itself negotiated. Boris Slang for Russian trading. Break Even Point The price of a financial instrument at which the option buyer recovers the premium, meaning that he makes neither a loss nor a gain. In the case of a call option, the break even point is the exercise price plus the premium. Break Out In the options market, undoing a conversion or a reversal to restore the option buyers original position. Bretton Woods The site of the conference which in 1944 led to the establishment of the post war foreign exchange system that remained intact until the early 1970s. The conference resulted in the formation of the IMF. The system fixed currencies in a fixed exchange rate system with 1 fluctuations of the currency to gold or the dollar. Broker An agent, who executes orders to buy and sell currencies and related instruments either for a commission or on a spread. Brokers are agents working on commission and not principals or agents acting on their own account. In the foreign exchange market brokers tend to act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties. There are four or five major global brokers operating through subsidiaries affiliates and partners in many countries. Brokerage Commission charged by a broker. BUBA Bundesbank, the reserve bank of Germany. Bull A person who believes that prices will rise. Bull Market A market characterized by rising prices. Bulldogs Sterling bonds issued in the UK by foreign institutions. Bundesbank Central Bank of Germany. Butterfly Spread (1) A futures butterfly spread is a spread trade in which multiple futures months are traded simultaneously at a differential. The trade basically consists of two futures spread transactions with either three or four different futures months at one differential. (2) An options butterfly spread is a combination of a bear and bull spread trade in which multiple options months and strike prices are traded simultaneously at a differential. The trade basically consists of two options spread transactions with either three or four different options months and strikes at one differential Cable A term used in the foreign exchange market for the US Dollar/British Pound rate. Cable Transfer Telegraphic transfer of funds from one centre to another. Now synonymous with inter bank electronic fund transfer. Cable Transfer Telegraphic transfer of funds from one centre to another. Now synonymous with inter bank electronic fund transfer. Call An option that gives the holder the right to buy the underlying instrument at a specified price during a fixed period. Call Option A call option confers the right but not the obligation to buy stock, shares or futures at a specified price. Capital Account Juxtaposition of the long and short term capital imports and exports of a country. Carry The interest cost of financing securities or other financial instruments held. Carry-Over Charge A finance charge associated with the storing of commodities (or foreign exchange contracts) from one delivery date to another. Cash Normally refers to an exchange transaction contracted for settlement on the day the deal is struck. This term is mainly used in the North American markets and those countries which rely for foreign exchange services on these markets because of time zone preference i. e. Latin America. In Europe and Asia, cash transactions are often referred to as value same day deals. Cash and Carry The buying of an asset today and selling a future contract on the asset. A reverse cash and carry is possible by selling an asset and buying a future. Cash Settlement A procedure for settling futures contract where the cash difference between the future and the market price is paid instead of physical delivery. CBOE Chicago Board Options Exchange. CBOT or CBT Chicago Board of Trade. CD Certificate of Deposit. Central Bank A central bank provides financial and banking services for a countrys government and commercial banks. It implements the governments monetary policy, as well, by changing interest rates. Central Rate Exchange rates against the ECU adopted for each currency within the EMS. Currencies have limited movement from the central rate according to the relevant band. Certificate of Deposit (CD) A negotiable certificate in bearer form issued by a commercial bank as evidence of a deposit with that bank which states the maturity value, maturity rate and interest rate payable. CDs vary in size with maturities ranging from a few weeks to several years. CDs may normally be redeemed before maturity only by sale on the secondary market but may also be redeemed back to issuing bank through payment of a penalty. CFTC The Commodity Futures Trading Commission, the US Federal regulatory agency for futures traded on commodity markets, including financial futures. CHAPS Clearing House Automated Payment System. Chartist An individual who studies graphs and charts of historic data to find trends and predict trend reversals which include the observance of certain patterns and characteristics of the charts to derive resistance levels, head and shoulders patterns, and double bottom or double top patterns which are thought to indicate trend reversals. CHIPS The New York clearing house clearing system. (Clearing House Interbank Payment System). Most Euro transactions are cleared and settled through this system. CIBOR Copenhagen Interbank Rate, the rate at which the banks lend the Danish Krone on an unsecured basis. The rate is calculated daily by the Danmarks Nationalbank (the Danish Central Bank), based on rules set out by the Danish Bankers Association. Closed Position A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency. Closing Purchase Transaction The purchase of an option identical to one already sold to liquidate a position. CME Chicago Mercantile Exchange. Coincident Indicator An economic indicator that generally moves in line with the general business cycle such as industrial production. Comex Commodity Exchange of New York. Commission The fee that a broker may charge clients for dealing on their behalf. Compound Option An option on an option, the dates and price of such option being fixed. Confirmation A memorandum to the other party describing all the relevant details of the transaction. Contract An agreement to buy or sell a specified amount of a particular currency or option for a specified month in the future (See Futures contract). Contract Expiration Date The date on which a currency must be delivered to fulfill the terms of the contract. For options, the last day on which the option holder can exercise his right to buy or sell the underlying instrument or currency. Contract Month The month in which a futures contract matures or becomes deliverable if not liquidated or traded out before the date specified. Correspondent Bank The foreign banks representative who regularly performs services for a bank which has no branch in the relevant centre, e. g. to facilitate the transfer of funds. In the US this often occurs domestically due to inter state banking restrictions. Cost of Carry The interest rate parity, where the forward price is determined by the cost of borrowing money in order to hold the position. Cost of Living Index Broadly equivalent to Retail Price Index or Consumer price. Counterparty The customer or bank with which a foreign exchange deal is executed. Counterparty Risks Foreign Currency Inter-bank Exchange (FOREX) instruments are Positions (Buys and/or Sell) between the Client and its Counterparty and, unlike exchange-traded foreign exchange instruments which are, in effect, guaranteed by a clearing organization affiliated with the exchange on which the instruments are traded, are not guaranteed by a clearing organization. Thus, when the Customer purchases an OTC foreign exchange instrument, it relies on the Counterparty from which it has purchased the instrument to fulfill the contract. Failure of a Counterparty to fulfill a Position could result in losses of any prior payment made pursuant to the Positions as well as the loss of the expected benefit of the transaction. Country Risk Factors that affect currency trading unique to the specific country include political, regulatory, legal and holiday risks. Coupon (1) On bearer stocks, the detachable part of the hide behind nominee status. Certificate exchangeable for dividends. (2) Denotes the rate of interest on a fixed interest security. Coupon Value The annual rate of interest of a bond. Cover (1) To take out a forward foreign exchange contract. (2) To close out a short position by buying currency or securities which have been sold. Covered Interest Rate Arbitrage An arbitrage approach which consists of borrowing currency A, exchanging it for currency B, investing currency B for the duration of the loan, and, after taking off the forward cover on maturity, showing a profit on the entire set of deals. It is based on the theorem of interest rate parity (one of the key theoretical economic relationships) which says that the return on a hedged foreign investment will just equal the domestic interest rate on investments of identical risk. When the covered interest rate differential between the two money markets is zero, there is no arbitrage incentive to move funds from one market to another. CPI Consumer Price Index. Monthly measure of the change in the prices of a defined basket of consumer goods including food, clothing, and transport. Countries vary in their approach to rents and mortgages. CPSS Committee on Payment and Settlement Systems. Crawling Peg (Adjustable Peg) An exchange rate system where a countrys exchange rate is pegged (i. e. fixed) in relation to another currency. The official rate may be changed from time to time. Credit Risk The risk that a debtor will not repay more specifically the risk that the counterparty does not have the currency promised to be delivered. Cross Deal A foreign exchange deal entered into involving two currencies, neither of which is the base currency. Cross Hedge A technique using financial futures to hedge different but related cash instruments based on the view that the price movements between the instruments move in concert. Cross Rate An exchange rate between two currencies, usually constructed from the individual exchange rates of the two currencies, as most currencies are quoted against the dollar. Cross-Trade A cross-trade transaction is a transaction where either the buy broker and the sell broker are the same, or the buy broker and the sell broker belong to the same firm. Currency The type of money that a country uses. It can be traded for other currencies on the foreign exchange market, so each currency has a value relative to another. Currency Basket Various weightings of other currencies grouped together in relation to a basket currency (e. g. ECU or SDR). Sometimes used by currencies to fix their rate often on a trade weighted basket. Current Account The net balance of a countrys international payment arising from exports and imports together with unilateral transfers such as aid and migrant remittances. It excludes capital flows. Current Balance The value of all exports (goods plus services) less all imports of a country over a specific period of time, equal to the sum of trade and invisible balances plus net receipt of interest, profits and dividends from abroad. Cycle The set of expiration dates applicable to different classes of option Day Order An order that if not executed on the specific day is automatically canceled. Day Trading A Day Trading deal is a currency exchange deal which renews automatically every night at 22:00 (GMT time) starting the day the deal was made and until it ends. The deal ends in one of the following events: 1.Termination initiated by you. 2.The day trading rate has reached the Stop-Loss or Take Profit rate you predefined. 3.The deal end date. As long as the deal is open, it is charged a renewal fee every night at 22:00 (GMT time). Deal Date The date on which a transaction is agreed upon. Deal Ticket The primary method of recording the basic information relating to a transaction. Dealer An individual or firm acting as a principal, rather than as an agent, in the purchase and /or sale of securities. Dealers trade for their own account and risk in contrast to the brokers who trade only on behalf of their clients. Declaration Date The latest day or time by which the buyer of an option must intimate to the seller his willingness or unwillingness to exercise the option. Deficit Shortfall in the balance of trade, balance of payments, or government budgets. Delivery The settlement of a transaction by receipt or tender of a financial instrument or currency. Delivery Date The date of maturity of the contract, when the final settlement of transaction is made by exchanging the currencies. This date is more commonly known as the value date. Delivery Risk A term to describe when a counterparty will not be able to complete his side of the deal. This risk is very high in case of over the counter transactions where there is no exchange which can stand as a guarantee to the trade between the two parties to the contract. Delta The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Also referred as the hedge ratio. Delta Hedging A method used by option writers to hedge risk exposure of written options by purchase or sale of the underlying instrument in proportion to the delta. Delta Spread A ratio spread of options established as a neutral position by using the deltas of the options concerned to determine the hedge ratio. Derivatives A broad term relating to risk management instruments such as futures, options, swaps, etc. The contract value moves in relation to the underlying instrument or currency. The issue of derivatives and their control following large losses by banks and corporates has been subject of much debate. Desk Term referring to a group dealing with a specific currency or currencies. Details All the information required to finalize a foreign exchange transaction, i. e. name, rate, dates, and point of delivery. Devaluation Deliberate downward adjustment of a currency against its fixed parities or bands which is normally accompanied by formal announcement. Direct Quotation Quoting in fixed units of foreign currency against variable amounts of the domestic currency. Discount Less than the spot price. For example, forward discount. Discount Rate The rate at which a bill is discounted. Specifically it refers to the rate at which a central bank is prepared to discount certain bills for financial institutions as a means of easing their liquidity, and is more accurately referred to as the official discount rate Domestic Rates The interest rates applicable to deposits domiciled in the country of origin. Value and values may vary from Eurodeposits due to taxation and varying market practices. Economic Exposure Reflects the impact of foreign exchange changes on the future competitive position of a company in the sense of the impact it can have on the future cash flows of the company. Economic Indicator A statistic which indicates current economic growth rates and trends such as retail sales and employment. ECU - European Currency Unit A basket of the member currencies. As a composite unit, the ECU consists of all the European Community currencies, which are individually weighted. It was created by the European Monetary System with the eventual goal of replacing the individual European member currencies. Effective Exchange Rate An attempt to summarize the effects on a countrys trade balance of its currencys changes against other currencies. EFT Electronic Fund Transfer. Either Way Market In the Euro Interbank deposit market where both bid and offer rates for a particular period are the same. EMS European Monetary System. EMU European Monetary Union. EOE European Options Exchange. Epsilon The change in the price of an option associated with a 1 change in implied volatility (technically the first derivative of the option price with respect to volatility). Also referred to as eta, vega, omega and kappa. ERM Exchange Rate Mechanism. Euro Clear A computerized settlement and depository system for safe custody, delivery of, and payment for Eurobonds. European Union The group formerly known as the European Community. Exchange Rate Risk The potential loss that could be incurred from an adverse movement in exchange rates. Exercise Price (Strike Price) The price at which an option can be exercised. Exotic A less broadly traded currency. Expiration Date (1) Options - the last date after which the option can no longer be exercised. (2) Bonds - the date on which a bond matures. Expiration Month The month in which an option expires. Expiry Date The last date on which an option can be bought or sold. Expiry Date The last day on which the holder of an option can exercise his right to buy or sell the underlying security. Exposure The total amount of money loaned to a borrower or country. Banks set rules to prevent overexposure to any single borrower. In trading operations, it is the potential for running a profit or loss from fluctuations in market prices. Fast Market Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported. Fed The United States Federal Reserve. Federal Deposit Insurance Corporation Membership is compulsory for Federal Reserve members. The corporation had deep involvement in the Savings and Loans crisis of the late 80s. Fed Fund Rate The interest rate on Fed funds. This is a closely watched short term interest rate as it signals the Feds view as to the state of the money supply. Fed Funds Cash balances held by banks with their local Federal Reserve Bank. The normal transaction with these funds is an inter bank sale of a Fed fund deposit for one business day. Straight deals are where the funds are traded overnight on a unsecured basis. FEDAI Foreign Exchange Dealers Association of India is an association of all dealers in foreign exchange which sets the ground rules for fixation of commissions and other charges and also determines the rules and regulations relating to day-to-day transactions in foreign exchange in India. Federal National Mortgage Association A privately owned but US government sponsored corporation that trades in residential mortgages. Its activities are funded by the sale of instruments commonly known as Fannie Maes. Federal Reserve Board The board of the Federal Reserve System, appointed by the US President for 14 year terms, one of whom is appointed for four years as chairman. Federal Reserve System The central banking system of the US comprising 12 Federal Reserve Banks controlling 12 districts under the Federal Reserve Board. Membership of the Fed is compulsory for banks chartered by the Comptroller of Currency and optional for state chartered banks. Fiscal Policy Use of taxation as a tool in implementing monetary policy. Fixed Exchange Rate Official rate set by monetary authorities for one or more currencies. In practice, even fixed exchange rates are allowed to fluctuate between definite upper and lower bands, leading to intervention by the central bank. Fixing A method of determining rates by normally finding a rate that balances buyers to sellers. Such a process occurs either once or twice daily at defined times. Used by some currencies particularly for establishing tourist rates. The system is also used in the London Bullion market. Flat/Square Where a client has not traded in that currency or where an earlier deal is reversed thereby creating a neutral (flat) position. example: you bought 500,000 then sold 500,000 FLAT . Float (1) see Floating exchange rate. (2) Cash in hand or in the course of being transferred between banks (3) Federal Reserve Float arises from the system where cheques sent to the Federal Reserve Banks are credited sometimes in advance of the depositing bank loosening the reserve. Floating Exchange Rate When the value of a currency is decided by the market forces dictating the demand and supply of that particular currency. Floor (1) An agreement with a counterparty that sets a lower limit to interest rates for the floor buyer for a stated time. (2) A term for an exchanges trading area (cf. screen based trading), normally the trading area is referred to as a pit in the commodities and futures markets. FOMC Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc. Foreign Exchange The purchase or sale of a currency against sale or purchase of another. Foreign Position It means a position under which one party agrees to purchase from or sell to the other party an agreed amount of foreign currency. Forex An abbreviation of foreign exchange Forex Deal The purchase or sale of a currency against sale or purchase of another currency. The maximum time for a deal is defined when the deal opens, the deal can be closed at any moment until the expiry date and time. A deal cannot be closed on its first 3 minutes, due to technical reasons. Forward Contract Sometimes used as synonym for forward deal or future. More specifically for arrangements with the same effect as a forward deal between a bank and a customer. Forward Cover Taking Forward contracts to protect against movements in the exchange rate. Forward Deal A deal with a value date greater than the spot value date. Forward Points The interest rate differential between two currencies expressed in exchange rate points. The forward points are added to or subtracted from the spot rate to give the forward or outright rate depending on whether the currency is at a forward premium or discount. Forward Rate The rate at which a foreign exchange contract is struck today for settlement at a specified future date which is decided at the time of entering into the contract. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction. The base currency with the higher interest rate is said to be at a discount to the lower interest rate quoted currency in the forward market. Therefore the forward points are subtracted from the spot rate. Similarly, the lower interest rate base currency is said to be at a premium, and the forward points are added to the spot rate to obtain the forward rate. Free Reserves Total reserves held by a bank less the reserves required by the authority. Front Office The activities carried out by the dealer, normal trading activities. Fundamental Analysis Analysis based on economic and political factors. Fundamentals The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates. Funds A term for USD/CAD/Fungibles Instruments that are equivalent, substitutable and interchangeable in law. May apply to certain exchange traded currency contracts offered on a number of exchanges. Futures Contract A contract traded on a futures exchange which requires the delivery of a specified quality and quantity of a commodity, currency or financial instruments a specified future month, if not liquidated before the contract matures. Futures Exchange-Traded Contracts They are firm agreements to deliver (or take delivery of) a standardized amount of something on a certain date at a predetermined price. Futures exist in currencies, money market deposits, bonds, shares and commodities. They are traded on an exchange with the clearing corporation gauranteeing the contract and moreover the trade is done on a mark to market basis. G10 G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved. G5 The five leading industrial countries - US, Germany, Japan, France, UK. G7 The seven leading industrial countries, being US. Germany, Japan, France, UK, Canada, Italy. Gamma The rate at which a delta changes over time or for one unit change in the price of the underlying asset. GNP Deflator Removes inflation from the GNP figure. Usually expressed as a percentage and based on an index figure. GNP Gap The difference between the actual real GNP and the potential real GNP. If the gap is negative an economy is overheated. Gold Standard The original system for supporting the value of currency issued. This system was in vogue before 1973 when the fixed exchange rates were prevalent. Gross Domestic Product Total value of a countrys output, income or expenditure produced within the countrys physical borders. Gross National Product Gross domestic product plus factor income from abroad - income earned from investment or work abroad. GTC Good Till Cancelled An order left with a dealer to buy or sell at a fixed price. The order remains in place until it is cancelled by the client. Hard Currency A currency whose value is expected to remain stable or increase in terms of other currencies. Head and Shoulders A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate that a further major fall is imminent. The breach of the neckline is the indication to sell. Hedge The purchase or sale of options or futures contracts as a temporary substitute for a transaction to be made at a later date. Usually it involves opposite positions in the cash or futures or options market. Hedging A hedging transaction is one whose main aim is to protect an asset or liability against a fluctuation in the foreign exchange rate rather than profit from the exchange rate fluctuations. Hyperinflation Very high and self sustaining inflation levels. One definition being the period while inflation exceeds 50 until it drops below that level for 12 months. ICCH International Commodities Clearing House Limited, a clearing house based in London operating world wide for many futures markets. IFEMA International Foreign Exchange Master Agreement. IMF International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term and encourage liberalization of exchange rates. The IMF helps its members to tide over the balance of payments problems with supplying the necessary loans. IMM International Monetary Market part of the Chicago Mercantile Exchange that lists a number of currency and financial futures. Implied Rates The interest rate determined by calculating the difference between spot and forward rates. Inconvertible Currency Currency which cannot be exchanged for other currencies either because it is forbidden by the foreign exchange regulations or the currency witnesses extreme volatility that it is not perceived to be a safe haven for parking the funds. Indicative Quote A market-makers price which is not firm. Indirect quote Where the foreign currency is a variable amount and the domestic currency is fixed at one unit. Inflation Continued rise in the general price level in conjunction with a related drop in purchasing power. Sometimes referred to as an excessive movement in such price levels. Info Quote Rate given for information purposes only. Initial Margin The deposit required by the Broker before a client can trade/transact a deal to have some cushion in the event of default by the party. Interbank Rates The forex rates large international banks quote to other large international banks. Normally the public and other businesses do not have access to these rates. Interest Rate Risk The potential for losses arising from changes in interest rates Interest Rate Swaps An agreement to exchange interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. The principal amount is notional as at the end of the tenure only cash flows related with the interest payments (whether payment or reciept) are exchanged. Intervention Action by a central bank to effect the value of its currency by entering the market. In-the-Money A call option is in-the-money if the price of the underlying instrument is higher than the exercise/strike price. A put option is in-the-money if the price of the underlying instrument is below the exercise/strike price. Intra Day Limit Limit set by bank management on the size of each dealers Intra Day Position. Intra Day Position Open positions run by a dealer within the day. Usually squared by the close. IOM Index and Options Market part of the Chicago Mercantile Exchange. IPI Industrial Production Index. A coincident indicator measuring physical output of manufacturing, mining and utilities. ISDA (International Securities Dealers Association Organization which foreign currency exchange banks have formed to regulate inter-bank markets and exchanges. J Curve A term describing the expected effect of a devaluation on a countrys trade balance. It is anticipated that import bills rise before export orders and receipts increase. Kiwi Slang for the New Zealand dollar. Knock In A process where a barrier option (European) becomes active as the underlying spot price is in the money. Knock Out has a corresponding meaning although the option may permanently cease to exist. Lay Off To carry out a transaction in the market to offset a previous transaction and return to a square position. LDC Less developed countries, often used with respect to secondary debt market. Leading Indicators Statistics that are considered to precede changes in economic growth rates and total business activity, e. g. factory orders. Leads and Lags The effect on foreign trade payments of an anticipated move in the exchange rate, normally a devaluation. The importers speeden up the payment for the imports and exporters delay receiving payment for the exports. Liability In terms of foreign exchange, the obligation to deliver to a counter party an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un-matured forward or spot transaction. LIBOR (London Inter Bank Offer Rate) British Bankers Association average of interbank offered rates for dollar deposits in the London market based on quotations at 16 major banks. Effective rate for contracts entered into two days from date appearing. LIFFE London International Financial Futures Exchange. Limit Order Reserved Day Trading Deal An order to perform a Day Trading deal at a rate pre-defined by the customer, when and if such rate comes up in real market time. The Limit rate is superior to the existing rate at the time of reservation. The reservation order lasts for a period defined by the customer, and is associated by the necessary collaterals to facilitate the potential Day Trading deal, when and if activated, under the pre-defined terms. Limited Convertibility When residents of a country are prohibited from buying other currencies even though non-residents may be completely free to buy or sell the national currency and the foreign institutional investors also have the liberty to buy and sell shares on the stock exchange of that country. Liquidation Any transaction that offsets or closes out a previously established position. Liquidity The ability of a market to accept large transactions without having any major impact on the interest rates. Long A market position where the Client has bought a currency they previously did not own. For example: long Dollars. M0 Cash in circulation. Only used by the UK. M1 Cash in circulation plus demand deposits at commercial banks. There are variations between the precise definitions used by national financial authorities. M2 Includes demand deposits, time deposits and money market mutual funds excluding large CDs. M3 In the UK it is M1 plus public and private sector time deposits and sight deposits held by the public sector. M4 In the US it is M2 plus negotiable CDs. Make a Market A dealer is said to make a market when he quotes both the bid and offer prices at which he stands ready to buy and sell. Managed Float When the monetary authorities intervene regularly in the market to stabilise the rates or to push the exchange rate in a required direction. Also called a dirty float. Margin Collateral that the holder of a position in securities, options, Forex or futures contracts, has to deposit to cover the credit risk of his counterparty. Other definitions to MARGIN, used in other areas are: (1) Difference between the buying and selling rates, also used to indicate the discount or premium between spot or forward. (2) For options, the sum required as collateral from the writer of an option. (3) For futures, a deposit made to the clearing house on establishing a futures position account. (4) The percentage reserve required by the US Federal Reserve to make an initial credit transaction. Margin Call A demand for additional funds to cover positions Marginal Risk The risk that a customer goes bankrupt after entering into a forward contract. In such an event the issuer must close the commitment running the risk of having to pay the marginal movement on the contract. Mark - To - Market The profits and/or losses are tallied at the end of the session according to the closing prices of the security and the account is marked to the market daily. The party will be called upon to make good the losses if there has been an adverse movement in the prices and it can book the profits in case there has been a favorable movement in the prices. Market Value Market value of a forex position at any time is the amount of the domestic currency that could be purchased at the then market rate in exchange for the amount of foreign currency to be delivered under the forex Contract. Maturity Date for settlement of the transaction which is decided at the time of entering into the contract. MITI Japanese Ministry of International Trade amp Industry. Money Supply The amount of money in the economy, which can be measured in a number of ways. Mutual fund An open-end investment company. Equivalent to unit trust. Nickel US term for five basis points. Nostro Account A foreign currency current account maintained with another bank. The account is used to receive and pay currency assets and liabilities denominated in the currency of the country in which the bank is resident. Not Held Basis Order An order whereby the price may trade through or better than the clients desired level, but the principal is not held responsible if the order is not executed. Note A financial instrument consisting of a promise to pay rather than an order to pay or a certificate of indebtedness. Offer The rate at which a dealer is willing to sell the base currency. Official Settlements Account A US balance of payments measure based on movement of dollars in foreign official holdings and US reserves. Also referred to as reserve transaction account. Off-Shore The operations of a financial institution which although physically located in a country, has little connection with that countrys financial systems. In certain countries a bank is not permitted to do business in the domestic market but only with other foreign banks. This is known as an off shore banking unit. Old Lady Old lady of Threadneedle Street, a term for the Bank of England. One Cancels Other Order Where the execution of one order automatically cancels a previous order also referred to as OCO or One cancels the other. Open Market Operations The central bank operations in the markets to influence exchange and interest rates. Open Position Any deal which has not been settled by physical payment or reversed by an equal and opposite deal for the same value date. It can be termed as a high risk, high return proposition. Option A contract conferring the right but not the obligation to buy (call) or to sell (put) a specified amount of an instrument at a specified price within a predetermined time period. Option Class All options of the same type - calls or puts - listed on the same underlying instrument. Option Series All options of the same class having the same exercise/strike price and expiration date. Out-of-the-Money A put option is out-of-the-money if the exercise/strike price is below the price of the underlying instrument. A call option is out-of-the money if the exercise/strike price is higher than the price of the underlying instrument. Outright Deal A forward deal that is not part of a swap operation. Outright Forward Foreign exchange transaction involving either the purchase or the sale of a currency for settlement at a future date. Outright Rate The forward rate of a foreign exchange deal based on spot price plus forward discount/premium. Over The Counter (OTC) A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange trading floor. These markets have not been very popular because of the risks both the parties face in case the other party fails to honour the contract. They were never part of the Stock Exchange since they were seen as unofficial. Overheated (Economy) Is an economy on a high growth rate trajectory placing pressure on the production capacity resulting in increased inflationary pressures and higher interest rates. Overnight Limit Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmonitored exposures. Package Deal When a number of exchange and /or deposit orders have to be fulfilled simultaneously. Par (1) The nominal value of a security or instrument. (2) The official value of a currency. Parities The value of one currency in terms of another. Parity (1) Foreign exchange dealers slang for your price is the correct market price. (2) Official rates in terms of SDR or other pegging currency. Permitted Currency It means a foreign currency which is freely convertible i. e a currency which is permitted by the rules and regulations of the country concerned to be converted into major reserve currencies and for which a fairly active and liquid market exists for dealing against the major currencies. Pip See point. (0.0001 of a unit). Point (1) 100th part of a per cent, normally 10,000 of any spot rate. Movement of exchange rates are usually in terms of points. (2) One percent on an interest rate e. g. from 8-9. (3) Minimum fluctuation or smallest increment of price movement. Political Risk The potential for losses arising from a change in government policy or due to the risk of expropriation (nationalisation by the government ). Position The netted total exposure in a given currency. A position can be either flat or square (no exposure), long (more currency bought than sold), or short ( more currency sold than bought). PPI Producer Price Indices. See wholesale price indices. Premium (1) The amount by which a forward rate exceeds a spot rate. (2) The amount by which the market price of a bond exceeds its par value. (3) Options, the price a put or call buyer must pay to a put or call seller for an option contract. (4) The margin paid above the normal price level. Prime Rate (1) The rate from which lending rates by banks are calculated in the US. (2) The rate of discount of prime bank bills in the UK. Principal A dealer who buys or sells stock for his/her own account. Profit Taking The unwinding of a position to realize profits. Purchasing Power Parity Model of exchange rate determination stating that the price of a good in one country should equal the price of the same good in another country after adjusting for the changes in the price due to the change in exchange rate. Also known as the law of one price. Put Call Parity The equilibrium relationship between premiums of call and put options of the same strike and expiry. Put Option A put option confers the right but not the obligation to sell currencies, instruments or futures at the option exercise price within a predetermined time period. Quote An indicative price. The price quoted for information purposes but not to deal. Range The difference between the highest and lowest price of a future recorded during a given trading session. Rate The price of one currency in terms of another. It has the same meaning as the term parities. Recession A decline in business activity. Often defined as two consecutive quarters with a real fall in GNP. Reserve Currency A currency held by a central bank on a permanent basis as a store of international liquidity, these are normally Dollar, Deutschemark, and Sterling.. Reserves Funds held against future contingencies, normally a combination of convertible foreign currency, gold, and SDRs. Official reserves are to ensure that a government can meet near term obligations. They are an asset in the balance of payments. Resistance A price level at which the selling is expected to take place. Retail Price Index Measurement of the monthly change in the average level of prices at retail, normally of a defined group of goods. Reuter Dealing A system for screen based trading that has been in operation since the early 1980s. It now has a matching optional enhancement known as Dealing 2000-2. Revaluation Increase in the exchange rate of a currency as a result of official action. Risk management The identification and acceptance or offsetting of the risks threatening the profitability or existence of an organisation. With respect to foreign exchange involves, among others, consideration of market, sovereign, country, transfer, delivery, credit, and counterparty risk. Risk Premium Additional sum payable or return to compensate a party for adopting a particular risk. Risks There are risks associated with any market. It means variance of the returns and the possibility that the actual return might not be in line with the expected returns. The risks associated with trading foreign currencies are: market, exchange, Interest rate, yield curve, volatility, liquidity, forced sale, counter party, credit, and country risk. Rolling over The substituting of a far option for a near option of the same underlying stock at the same strike/exercise price. Rollover Where the settlement of a deal is carried forward to another value date based on the interest rate differential of the two currencies example: next day Selling Rate Rate at which a bank is willing to sell foreign currency. Settlement Actual physical exchange of one currency for another. Settlement Date It means the business day specified for delivery of the currencies bought and sold under a forex contract. Short A market position where the client has sold a currency he does not already own. Usually expressed in base currency terms. SITC Standard International Trade Classification. A system for reporting trade statistics in a common manner. SOFFEX Swiss Options and Financial Futures Exchange, a fully automated and integrated trading and clearing system. Soft Market More potential sellers than buyers, which creates an environment where rapid price falls are likely. Spot (1) The most common foreign exchange transaction. (2) Spot refers to the buying and selling of the currency where the settlement date is two business days forward. Spot Next The overnight swap from the spot date to the next business day. Spot Price/Rate The price at which the currency is currently trading in the spot market. Spread (1) The difference between the bid and ask price of a currency. (2) The difference between the price of two related futures contracts. (3) For options, transactions involving two or more option series on the same underlying currency. Stable Market An active market which can absorb large sale or purchases of currency without having any major impact on the interest rates. Stagflation Recession or low growth in conjunction with high inflation rates. Standard and Poors (SP) A US firm engaged in assessing the financial health of borrowers. The firm also has generated certain stock indices i. e. SampP 500. Sterilization Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the forex market. Sterling British pound, otherwise known as cable. Stop Loss Order Order given to ensure that, should a currency weaken by a certain percentage, a short position will be covered even though this involves taking a loss. Realize profit orders are less common. Stop Out Price US term for the lowest accepted price for Treasury Bills at auction. Straddle The simultaneous purchase/sale of both call and put options for the same share, exercise/strike price and expiry date. Strike Price Also called exercise price. The price at which an option holder can buy or sell the underlying instrument. Strip A combination of two puts and one call. Structural Unemployment Unemployment levels inherent in an economic structure. Support Levels A price level at which the buying is expected to take place. Swap 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 swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction. Swift Society for Worldwide Inter-bank Financial Telecommunication is a clearing system for international trading. Swissy Market slang for Swiss Franc. Technical Analysis The study of the price that reflects the supply and demand factors of a currency. Common methods are flags, trend-lines spikes, bottoms, tops, pennants, patterns and gaps. Technical Correction An adjustment to price not based on market sentiment but technical factors such as volume and charting. Terms of Trade The ratio between export and import price indices. Theta A measure of the sensitivity of the price of an option to a change in its time to expiry. Thin Market 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. TIBOR Tokyo Inter-bank Offered Rate. Tick A minimum change in price, up or down. TIFFE Tokio International Financial Futures Exchange. Tomorrow Next (Tom next) Simultaneous buying and selling of a currency for delivery the following day and selling for the next day or vice versa. Trade Date The date on which a trade occurs. Tranche A portion of a deal or structured financing, specifically used for borrowings from the IMF. Transaction The buying or selling of securities resulting from the execution of an order. Transaction Date The date on which a trade occurs. Transaction Exposure Potential profit and loss generated by current foreign exchange transactions Under-Valuation An exchange rate is normally considered to be undervalued when it is below its purchasing power parity. Value Date For exchange contracts it is the day on which the two contracting parties exchange the currencies which are being bought or sold. For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. Value Spot Normally settlement is for two working days from the date the contract is entered into. Value Today Transaction is executed for same day settlement sometimes also referred to as cash transaction. Vanilla A simple option whose terms and conditions do not include any provisions other than exercise style, expiry and strike. To compare with exotic options which have additional terms. Variation Margin Funds required to be deposited by a client when a price movement has caused funds to fall below the stipulated percentage of the value of the contract. Vega Expresses the price change of an option for a one per cent change in the implied volatility. Velocity of Money The speed with which money circulates or turnover in the economy. It is calculated as the annual national income: average money stock in the period. Volatility A measure of the amount by which an asset price is expected to fluctuate over a given period. Normally measured by the annual standard deviation of daily price changes (historic). Can be implied from futures pricing, implied volatility. Vostro Account A local currency account maintained with a bank by another bank. The term is normally applied to the counter-partys account from which funds may be paid into or withdrawn, as a result of a transaction. Wholesale Money Money borrowed in large amounts from banks and institutions rather than from small investors. 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. Working day A day on which the banks in a currencys principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both (all relevant currency centers in the case of a cross) are open. 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. Writer The seller of a position. Also known as the grantor of the trade. Writing a Currency is to sell it. Yield Curve The graph showing changes in yield on instruments depending on time to maturity. A system originally developed in the bond markets is now broadly applied to various financial futures. 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. Z-Certificate Certificate issued by the Bank of England to discount houses in lieu of stock certificates to facilitate their dealing in the short dated gilt edge securities. Zero Coupon Bond A bond that pays no interest. The bond is initially offered at a discount to its redemption value. Advertencia de Riesgo: Forex, Commodities, Options y CFDs (OTC Trading) son productos apalancados que conllevan un riesgo sustancial de pérdida hasta su capital invertido y pueden no ser adecuados para todos. Asegúrese de que entiende completamente los riesgos involucrados y no invierta dinero que no puede permitirse perder. Consulte nuestra renuncia de responsabilidad completa. EF Worldwide Ltd EF Worldwide Ltd Easy Forex reg es una marca registrada. Copyright copy 2016. Todos los derechos reservados.