Category: FOREX
Forex Glossary of Terms U to Z
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 complete description see the chapter on trading….
Forex Glossary of Terms S to T
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…
Forex Glossary of Terms P to R
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 dealer’s slang for…
Forex Glossary of Terms N to O
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…
Forex Glossary of Terms L to M
Forex Glossary of Terms L to O 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 Statistic that are considered to precede changes in…
Forex Glossary of Terms F to K
Forex Glossary of Terms F to K 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…
FOREX 101 Things You Need to Know to Succeed in Forex Trading Online
FOREX 101 Things You Need to Know to Succeed in Forex Trading Online Firstly, never succumb to the ‘gamblers addiction’ when you are trading online in Forex. This is the downfall of perhaps hundreds of people who go into the Forex market without any sense of money management. Do not…
Forex Glossary of Terms A to B
Forex Glossary of Terms A to B Aggregate RiskTotal 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 through out the life of the option. Appreciation Describes a currency strengthening in…
4 Benefits of Forex Exchange Trading
The first thing you should know about when talking about the benefits of the Forex market is that it really is one of the largest markets in the world with a daily turnover of a few trillion dollars. While market saturation is always a problem, the Forex market is one…
