Forex: GBP/USD rises further to 1.5165
FXstreet.com (Córdoba) – The Dollar is plummeting across the board as stocks rocket in Europe and in Wall Street. GBP/USD rose further to 1.5165 reaching a fresh intra-day high. The pair broke above 1.5130 and jumped 40 pips favored by current market sentiment.
Saturday, July 17, 2010
THeEDgeFX Usdcad
THeEDgeFX Usdcad
THeEDgeFX Usdcad Expert Advisor strategy combines a pioneering pattern recognition technology along with innovative market level indicators to create a truly dynamic system adjustable to all market conditions.
THeEDgeFX Usdcad Expert Advisor strategy combines a pioneering pattern recognition technology along with innovative market level indicators to create a truly dynamic system adjustable to all market conditions.
Leverage Forex – What Is Leverage In Forex?
Leverage Forex – What Is Leverage In Forex?
The forex deals are accomplished in a plethora and every lot consists of 100,000 units of any particular distant currency, to purchase one single lot of foreign exchange a lot of investment is vital and that may run to hundreds of dollars of thousands of dollars which means the minute investors are left out of the fray. For this actually purpose the concept of leverage was introduced in the forex trade. Leverage backed providing credit, these kinds of as a outside edge account is very ubniquitous in Forex trade. The leverage consideration in which Forex can be sold for a combination of cash or collateral, what the broker accepts is rather popular amidst the forex traders. Usually the leverage in the margined account is collateralized by the earliest deposit made by you in the account, if the value of the trade goes low significantly next the broker may ask you to either deposit more and more cash, or sell a portion of your holding. Leverage Forex Margin requirements and interest vary among broker/dealers. The amount of leverage you use will depend on your broker and what you feel comfortable with. You can get leverage from a high as 1% with some brokers. This means you can control $100,000 with the investment of only $1,000. The broker sets a minimum account size also known as account margin or initial investment. Once you have deposited the required sum you will be able to trade in the forex market. The minimum security for each lot usually varies from broker to broker. While with the brokers you should be well aware of the Margin call. Suppose for any reason, if the broker thinks that your holdings are in danger and your losses are approaching your margin quite fast. He may ask you to deposit more money, or dispose your holding of the forex lots to limit your risk and his risk. Another term is quite relevant in this connection and that is variation margin. Variation Margin is also very important and it is the amount of profit or loss your account is showing on the holdings of the forex lots. There is one more point to keep in the mind is that some brokers require a higher margin during the weekends. It all depends on your broker. The leverage accounts in the forex market have actually made the life easy for the small investors. These leverage accounts helps the small investors to buy the big lots of the foreign currencies and in turn allow them to earn handsome profits. They also act as the alarm bell for the unaware investor while making any loosing proposition and in case of the loss it restricts the amount of the loss of the investor to a bearable limit of the initial investment. Living an average life? Always want to have financial freedom? Check out Leverage Forex Program. It’ll change your Life Forever!
The forex deals are accomplished in a plethora and every lot consists of 100,000 units of any particular distant currency, to purchase one single lot of foreign exchange a lot of investment is vital and that may run to hundreds of dollars of thousands of dollars which means the minute investors are left out of the fray. For this actually purpose the concept of leverage was introduced in the forex trade. Leverage backed providing credit, these kinds of as a outside edge account is very ubniquitous in Forex trade. The leverage consideration in which Forex can be sold for a combination of cash or collateral, what the broker accepts is rather popular amidst the forex traders. Usually the leverage in the margined account is collateralized by the earliest deposit made by you in the account, if the value of the trade goes low significantly next the broker may ask you to either deposit more and more cash, or sell a portion of your holding. Leverage Forex Margin requirements and interest vary among broker/dealers. The amount of leverage you use will depend on your broker and what you feel comfortable with. You can get leverage from a high as 1% with some brokers. This means you can control $100,000 with the investment of only $1,000. The broker sets a minimum account size also known as account margin or initial investment. Once you have deposited the required sum you will be able to trade in the forex market. The minimum security for each lot usually varies from broker to broker. While with the brokers you should be well aware of the Margin call. Suppose for any reason, if the broker thinks that your holdings are in danger and your losses are approaching your margin quite fast. He may ask you to deposit more money, or dispose your holding of the forex lots to limit your risk and his risk. Another term is quite relevant in this connection and that is variation margin. Variation Margin is also very important and it is the amount of profit or loss your account is showing on the holdings of the forex lots. There is one more point to keep in the mind is that some brokers require a higher margin during the weekends. It all depends on your broker. The leverage accounts in the forex market have actually made the life easy for the small investors. These leverage accounts helps the small investors to buy the big lots of the foreign currencies and in turn allow them to earn handsome profits. They also act as the alarm bell for the unaware investor while making any loosing proposition and in case of the loss it restricts the amount of the loss of the investor to a bearable limit of the initial investment. Living an average life? Always want to have financial freedom? Check out Leverage Forex Program. It’ll change your Life Forever!
Fibonacci Killer – Unlimited Fx Trading
Fibonacci Killer – Unlimited Fx Trading
Conversions Are Insane! Lethally Accurate Forex System Inc. System & Indicator Enabling Anybody To Make Shocking Amounts Of Money Trading The Forex Market With Only A Few Minutes A Day! Huge 70% Commission!
Conversions Are Insane! Lethally Accurate Forex System Inc. System & Indicator Enabling Anybody To Make Shocking Amounts Of Money Trading The Forex Market With Only A Few Minutes A Day! Huge 70% Commission!
Forex: USD/JPY rebounds from 88.00
Forex: USD/JPY rebounds from 88.00
FXstreet.com (Buenos Aires) – Despite general bullish tone seen in Japanese Yen since past Asian session, USD/JPY rebounded back up after testing the 88.00 level; pair bearish tone is being interrupted by good tone in stocks markets, with European and American indexes aiming to end the day with strong gains.
FXstreet.com (Buenos Aires) – Despite general bullish tone seen in Japanese Yen since past Asian session, USD/JPY rebounded back up after testing the 88.00 level; pair bearish tone is being interrupted by good tone in stocks markets, with European and American indexes aiming to end the day with strong gains.
foreign direct investment
Investment by a company or government of one country in production facilities in a different country. The direct investment may be by means of purchasing a foreign company or constructing production facilities as part of an existing business. For example, in 2001 Swiss-based Nestlé paid $10 billion to acquire U.S. pet food maker Ralston Purina. Also called direct investment.
foreign exchange controls
foreign exchange controls
Restrictions that are imposed by a nation on the free exchange and convertibility of its own currency. Foreign exchange controls are most often instituted by countries whose currencies are weak and whose citizens prefer to hold and use the currencies of other nations. Institution of foreign exchange controls hinders foreign investors who wish to extricate their funds.
Restrictions that are imposed by a nation on the free exchange and convertibility of its own currency. Foreign exchange controls are most often instituted by countries whose currencies are weak and whose citizens prefer to hold and use the currencies of other nations. Institution of foreign exchange controls hinders foreign investors who wish to extricate their funds.
foreign exchange
Transaction of international monetary business, as between governments or businesses of different countries.
Negotiable bills drawn in one country to be paid in another country.
foreign exchange - Business Definition
Foreign currency and financial instruments that can be used to make payments in foreign countries.
The purchase or sale of foreign currencies
foreign exchange risk
The risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced. For example, if an investor residing in the United States purchases a bond denominated in Japanese yen, a deterioration in the rate at which the yen exchanges for dollars will reduce the investor's rate of return, since he or she must eventually exchange the yen for dollars. Also called exchange rate risk.
Negotiable bills drawn in one country to be paid in another country.
foreign exchange - Business Definition
Foreign currency and financial instruments that can be used to make payments in foreign countries.
The purchase or sale of foreign currencies
foreign exchange risk
The risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced. For example, if an investor residing in the United States purchases a bond denominated in Japanese yen, a deterioration in the rate at which the yen exchanges for dollars will reduce the investor's rate of return, since he or she must eventually exchange the yen for dollars. Also called exchange rate risk.
Forex Glossary
A TO C
Appreciation - A currency is said to 'appreciate ' when it strengthens in price in response to market demand.
Arbitrage - The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
Around - Dealer jargon used in quoting when the forward premium/discount is near parity. For example, "two-two around" would translate into 2 points to either side of the present spot.
Ask Rate - The rate at which a financial instrument if offered for sale (as in bid/ask spread).
Asset Allocation - Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor's objectives.
Back Office - The departments and processes related to the settlement of financial transactions.
Balance of Trade - The value of a country's exports minus its imports.
Base Currency - In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX markets, the US Dollar is normally considered the 'base' currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar.
Bear Market - A market distinguished by declining prices.
Bid/Ask Spread - The difference between the bid and offer price, and the most widely used measure of market liquidity.
Big Figure - Dealer expression referring to the first few digits of an exchange rate. These digits rarely change in normal market fluctuations, and therefore are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.30/107.35, but would be quoted verbally without the first three digits i.e. "30/35".
Book - In a professional trading environment, a 'book' is the summary of a trader's or desk's total positions.
Broker - An individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a 'dealer' commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.
Bretton Woods Agreement of 1944 - An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US $35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies.
Bull Market - A market distinguished by rising prices.
Bundesbank - Germany's Central Bank.
Cable - Trader jargon referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800's.
Candlestick Chart - A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.
Central Bank - A government or quasi-governmental organization that manages a country's monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank.
Chartist - An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader.
Clearing - The process of settling a trade.
Contagion - The tendency of an economic crisis to spread from one market to another. In 1997, political instability in Indonesia caused high volatility in their domestic currency, the Rupiah. From there, the contagion spread to other Asian emerging currencies, and then to Latin America, and is now referred to as the 'Asian Contagion'.
Commission - A transaction fee charged by a broker.
Confirmation - A document exchanged by counterparts to a transaction that states the terms of said transaction.
Contract - The standard unit of trading,
Counterparty - One of the participants in a financial transaction.
Country Risk - Risk associated with a cross-border transaction, including but not limited to legal and political conditions.
Cross Rate - The exchange rate between any two currencies that are considered non-standard in the country where the currency pair is quoted. For example, in the US, a GBP/JPY quote would be considered a cross rate, whereas in UK or Japan it would be one of the primary currency pairs traded.
Currency - Any form of money issued by a government or central bank and used as legal tender and a basis for trade.
Currency Risk - the probability of an adverse change in exchange rates.
D to G
Day Trading - Refers to positions which are opened and closed on the same trading day.
Dealer - An individual who acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
Deficit - A negative balance of trade or payments.
Delivery - An FX trade where both sides make and take actual delivery of the currencies traded.
Depreciation - A fall in the value of a currency due to market forces.
Derivative - A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.
Devaluation - The deliberate downward adjustment of a currency's price, normally by official announcement.
Economic Indicator - A government issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc.
European Monetary Union (EMU) - The principal goal of the EMU is to establish a single European currency called the Euro, which will officially replace the national currencies of the member EU countries in 2002. On January 1st, 1999 the transitional phase to introduce the Euro began. The Euro now exists as a banking currency and paper financial transactions and foreign exchange are made in Euros. This transition period will last for three years, at which time Euro notes an coins will enter circulation. On July 1,2002, only Euros will be legal tender for EMU participants, the national currencies of the member countries will cease to exist. The current members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.
EURO - the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU).
European Central Bank (ECB) - the Central Bank for the new European Monetary Union.
Federal Deposit Insurance Corporation (FDIC ) - The regulatory agency responsible for administering bank depository insurance in the US.
Federal Reserve (Fed) - The Central Bank for the United States.
Flat/square - Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.
Foreign Exchange - (Forex, FX) - the simultaneous buying of one currency and selling of another.
Forward - The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.
Forward points - The pips added to or subtracted from the current exchange rate to calculate a forward price.
Fundamental analysis - Analysis of economic and political information with the objective of determining future movements in a financial market.
Futures Contract - An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange-Traded Contacts - ETC), versus forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
Good 'Til Cancelled Order (GTC) - An order to buy or sell at a specified price. This order remains open until filled or until the client cancels.
H to N
Hedge - A position or combination of positions that reduces the risk of your primary position.
Inflation - An economic condition whereby prices for consumer goods rise, eroding purchasing power.
Initial margin - The initial deposit of collateral required to enter into a position as a guarantee on future performance.
Interbank rates - The Foreign Exchange rates at which large international banks quote other large international banks.
Leading Indicators - Statistics that are considered to predict future economic activity.
LIBOR - The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.
Limit order - An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 102.00/05, then a limit order to buy USD would be at a price below 102. (i.e., 101.50)
Liquidity - The ability of a market to accept large transaction with minimal to no impact on price stability.
Liquidation - The closing of an existing position through the execution of an offsetting transaction.
Long position - A position that appreciates in value if market prices increase.
Margin call - A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the customer.
Market Maker - A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument.
Market Risk - Exposure to changes in market prices.
Mark-to-Market - Process of reevaluating all open positions with the current market prices. These new values then determine margin requirements.
Maturity - The date for settlement or expiration of a financial instrument.
Momentum investor - A market participant who increase market exposure when the market is rising and decreases exposure or goes short when the market is declining.
O to S
Offer - The rate at which a dealer is willing to sell a currency.
Offsetting transaction - A trade with which serves to cancel or offset some or all of the market risk of an open position.
One Cancels the Other Order (OCO) - A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.
Open order - An order that will be executed when a market moves to its designated price. Normally associated with Good 'til Cancelled Orders.
Open position - A deal not yet reversed or settled with a physical payment.
Over the Counter (OTC ) - Used to describe any transaction that is not conducted over an exchange.
Overnight - A trade that remains open until the next business day.
Pips - Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points.
Political Risk - Exposure to changes in governmental policy which will have an adverse effect on an investor's position.
Position - The netted total holdings of a given currency.
Premium - In the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Price Transparency - Describes quotes to which every market participant has equal access
Quote - An indicative market price, normally used for information purposes only.
Rate - The price of one currency in terms of another, typically used for dealing purposes.
Resistance - A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.
Revaluation - An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.
Risk - Exposure to uncertain change, most often used with a negative connotation of adverse change.
Risk Management - the employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.
Roll-Over - Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
Settlement - The process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.
Short Position - An investment position that benefits from a decline in market price.
Spot Price - The current market price. Settlement of spot transactions usually occurs within two business days.
Spread - The difference between the bid and offer prices.
Sterling - slang for British Pound.
Stop Loss Order - Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.
Support Levels - A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.
Swap - A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Swissy - Slang for Swiss Franc.
T to Z
GO TO TOP
Technical Analysis - An effort to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open interest, etc.
Tomorrow Next (Tom/Next) - Simultaneous buying and selling of a currency for delivery the following day.
Transaction Cost - the cost of buying or selling a financial instrument.
Transaction Date - The date on which a trade occurs.
Turnover - The total money value of all executed transactions in a given time period; volume.
Two-Way Price - When both a bid and offer rate is quoted for a FX transaction.
Uptick - a new price quote at a price higher than the preceding quote.
Uptick Rule - In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.
US Prime Rate - The interest rate at which US banks will lend to their prime corporate customers
Value Date - The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.Variation Margin - Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements. Volatility (Vol) - A statistical measure of a market's price movements over time.
Whipsaw - slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
Yard - Slang for a billion
Appreciation - A currency is said to 'appreciate ' when it strengthens in price in response to market demand.
Arbitrage - The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
Around - Dealer jargon used in quoting when the forward premium/discount is near parity. For example, "two-two around" would translate into 2 points to either side of the present spot.
Ask Rate - The rate at which a financial instrument if offered for sale (as in bid/ask spread).
Asset Allocation - Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor's objectives.
Back Office - The departments and processes related to the settlement of financial transactions.
Balance of Trade - The value of a country's exports minus its imports.
Base Currency - In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX markets, the US Dollar is normally considered the 'base' currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar.
Bear Market - A market distinguished by declining prices.
Bid/Ask Spread - The difference between the bid and offer price, and the most widely used measure of market liquidity.
Big Figure - Dealer expression referring to the first few digits of an exchange rate. These digits rarely change in normal market fluctuations, and therefore are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.30/107.35, but would be quoted verbally without the first three digits i.e. "30/35".
Book - In a professional trading environment, a 'book' is the summary of a trader's or desk's total positions.
Broker - An individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a 'dealer' commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.
Bretton Woods Agreement of 1944 - An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US $35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies.
Bull Market - A market distinguished by rising prices.
Bundesbank - Germany's Central Bank.
Cable - Trader jargon referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800's.
Candlestick Chart - A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.
Central Bank - A government or quasi-governmental organization that manages a country's monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank.
Chartist - An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader.
Clearing - The process of settling a trade.
Contagion - The tendency of an economic crisis to spread from one market to another. In 1997, political instability in Indonesia caused high volatility in their domestic currency, the Rupiah. From there, the contagion spread to other Asian emerging currencies, and then to Latin America, and is now referred to as the 'Asian Contagion'.
Commission - A transaction fee charged by a broker.
Confirmation - A document exchanged by counterparts to a transaction that states the terms of said transaction.
Contract - The standard unit of trading,
Counterparty - One of the participants in a financial transaction.
Country Risk - Risk associated with a cross-border transaction, including but not limited to legal and political conditions.
Cross Rate - The exchange rate between any two currencies that are considered non-standard in the country where the currency pair is quoted. For example, in the US, a GBP/JPY quote would be considered a cross rate, whereas in UK or Japan it would be one of the primary currency pairs traded.
Currency - Any form of money issued by a government or central bank and used as legal tender and a basis for trade.
Currency Risk - the probability of an adverse change in exchange rates.
D to G
Day Trading - Refers to positions which are opened and closed on the same trading day.
Dealer - An individual who acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
Deficit - A negative balance of trade or payments.
Delivery - An FX trade where both sides make and take actual delivery of the currencies traded.
Depreciation - A fall in the value of a currency due to market forces.
Derivative - A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.
Devaluation - The deliberate downward adjustment of a currency's price, normally by official announcement.
Economic Indicator - A government issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc.
European Monetary Union (EMU) - The principal goal of the EMU is to establish a single European currency called the Euro, which will officially replace the national currencies of the member EU countries in 2002. On January 1st, 1999 the transitional phase to introduce the Euro began. The Euro now exists as a banking currency and paper financial transactions and foreign exchange are made in Euros. This transition period will last for three years, at which time Euro notes an coins will enter circulation. On July 1,2002, only Euros will be legal tender for EMU participants, the national currencies of the member countries will cease to exist. The current members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.
EURO - the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU).
European Central Bank (ECB) - the Central Bank for the new European Monetary Union.
Federal Deposit Insurance Corporation (FDIC ) - The regulatory agency responsible for administering bank depository insurance in the US.
Federal Reserve (Fed) - The Central Bank for the United States.
Flat/square - Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.
Foreign Exchange - (Forex, FX) - the simultaneous buying of one currency and selling of another.
Forward - The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.
Forward points - The pips added to or subtracted from the current exchange rate to calculate a forward price.
Fundamental analysis - Analysis of economic and political information with the objective of determining future movements in a financial market.
Futures Contract - An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange-Traded Contacts - ETC), versus forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
Good 'Til Cancelled Order (GTC) - An order to buy or sell at a specified price. This order remains open until filled or until the client cancels.
H to N
Hedge - A position or combination of positions that reduces the risk of your primary position.
Inflation - An economic condition whereby prices for consumer goods rise, eroding purchasing power.
Initial margin - The initial deposit of collateral required to enter into a position as a guarantee on future performance.
Interbank rates - The Foreign Exchange rates at which large international banks quote other large international banks.
Leading Indicators - Statistics that are considered to predict future economic activity.
LIBOR - The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.
Limit order - An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 102.00/05, then a limit order to buy USD would be at a price below 102. (i.e., 101.50)
Liquidity - The ability of a market to accept large transaction with minimal to no impact on price stability.
Liquidation - The closing of an existing position through the execution of an offsetting transaction.
Long position - A position that appreciates in value if market prices increase.
Margin call - A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the customer.
Market Maker - A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument.
Market Risk - Exposure to changes in market prices.
Mark-to-Market - Process of reevaluating all open positions with the current market prices. These new values then determine margin requirements.
Maturity - The date for settlement or expiration of a financial instrument.
Momentum investor - A market participant who increase market exposure when the market is rising and decreases exposure or goes short when the market is declining.
O to S
Offer - The rate at which a dealer is willing to sell a currency.
Offsetting transaction - A trade with which serves to cancel or offset some or all of the market risk of an open position.
One Cancels the Other Order (OCO) - A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.
Open order - An order that will be executed when a market moves to its designated price. Normally associated with Good 'til Cancelled Orders.
Open position - A deal not yet reversed or settled with a physical payment.
Over the Counter (OTC ) - Used to describe any transaction that is not conducted over an exchange.
Overnight - A trade that remains open until the next business day.
Pips - Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points.
Political Risk - Exposure to changes in governmental policy which will have an adverse effect on an investor's position.
Position - The netted total holdings of a given currency.
Premium - In the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Price Transparency - Describes quotes to which every market participant has equal access
Quote - An indicative market price, normally used for information purposes only.
Rate - The price of one currency in terms of another, typically used for dealing purposes.
Resistance - A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.
Revaluation - An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.
Risk - Exposure to uncertain change, most often used with a negative connotation of adverse change.
Risk Management - the employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.
Roll-Over - Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
Settlement - The process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.
Short Position - An investment position that benefits from a decline in market price.
Spot Price - The current market price. Settlement of spot transactions usually occurs within two business days.
Spread - The difference between the bid and offer prices.
Sterling - slang for British Pound.
Stop Loss Order - Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.
Support Levels - A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.
Swap - A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Swissy - Slang for Swiss Franc.
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Technical Analysis - An effort to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open interest, etc.
Tomorrow Next (Tom/Next) - Simultaneous buying and selling of a currency for delivery the following day.
Transaction Cost - the cost of buying or selling a financial instrument.
Transaction Date - The date on which a trade occurs.
Turnover - The total money value of all executed transactions in a given time period; volume.
Two-Way Price - When both a bid and offer rate is quoted for a FX transaction.
Uptick - a new price quote at a price higher than the preceding quote.
Uptick Rule - In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.
US Prime Rate - The interest rate at which US banks will lend to their prime corporate customers
Value Date - The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.Variation Margin - Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements. Volatility (Vol) - A statistical measure of a market's price movements over time.
Whipsaw - slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
Yard - Slang for a billion
Stock Markets
Indian stock markets recovered some earlier losses on Friday.
The 30-share index Sensex marked its closure after making small gains owing to subdued worldwide signals.
The bellwether index Sensex belled the day on a quite note accompanying pessimistic Asian peers and continued the dispirited session amid instability during the entire day.
During the second half, buying activity took the broad-based Nifty above 5,400 levels but failed to sustain the mark.
It’s Vital For Common Man To Know Benefits Of Investing In Capital Market
Union Minister for Corporate Affairs Salman Kurshid stated that it is important for the common man to be acquainted with the plus points of making investments in the capital market through investor education programmes.
The 30-share index Sensex marked its closure after making small gains owing to subdued worldwide signals.
The bellwether index Sensex belled the day on a quite note accompanying pessimistic Asian peers and continued the dispirited session amid instability during the entire day.
During the second half, buying activity took the broad-based Nifty above 5,400 levels but failed to sustain the mark.
It’s Vital For Common Man To Know Benefits Of Investing In Capital Market
Union Minister for Corporate Affairs Salman Kurshid stated that it is important for the common man to be acquainted with the plus points of making investments in the capital market through investor education programmes.
Lack of any major news allowed Indian equities market to trade within a narrow range only. Nevertheless it carried on the positive trail to end the day in green.
While the benchmark Bombay Stock Exchange Sensex closed 46.36 points or 0.26 per cent up at 17,955.82, the 50 scrip-based Nifty at the National Stock Exchange ended the day 15.15 points or 0.28 per cent up.
However, the broader indices outperformed the benchmarks, even if it's by a smaller margin, at both BSE and NSE.
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