Proof of address (dated and posted within three months) and proof of identification.
Application Programming Interface.
The sell price.
Bank Automated Clearing System. Payments will take up to three business days to clear into a designated account.
The interest rate set by a central bank.
The first currency in a currency cross or pair, e.g. GBP/USD, GBP is the base.
Someone who forecasts prices will decline and/or a currency to depreciate.
The buy price.
The Bank of England--the UK's central bank.
Where a client trades outside agreed parameters.
An estimate of income and expenditure for a set period of time.
Someone who forecasts prices to rise and/or a currency to appreciate.
The Pound to US Dollar (GBP/USD) exchange rate.
Clearing House Automated Payment System. Faster than a BACS payment, and can be transferred and received on the same business day.
The two currencies involved in a transaction, e.g. GBP/EUR, USD/JPY, EUR/USD.
The primary method of recording basic information relating to a transaction.
Someone authorised to deal on the foreign exchange market, who by placing the order to buy or sell, acts as the principal or counterpart to a transaction.
Online Internet trading platforms that link the contributing banks around the world.
A down payment provided by clients as collateral to secure a forward trade.
A product of two or more moving components.
A tone of language used to describe a situation that is seen to be non-aggressive. For instance: The Bank of England Governor made dovish comments about the future of monetary policy.
Durable Goods Orders
An economic indicator that measures the changes in sales of products with a life span in excess of three years.
The European Central Bank, governing monetary policy for the 19 member states in the Eurozone.
The rate at which one currency can be traded for another.
The potential for running a profit or loss from fluctuations in market prices, risk.
An economic indicator that refers to the total orders of durable and non-durable goods. The non-durable goods orders consist of food, clothing, light industrial products, and products designed for the maintenance of durable goods.
The Federal Reserve, the US central bank.
Where an earlier deal is reversed thereby creating a neutral (flat) position.
Foreign Exchange, Forex, FX
The simultaneous buying of one currency and selling of another.
Foreign exchange centres
London is the largest centre of foreign exchange trading. New York, Tokyo, Singapore, Zurich, Frankfurt, Hong Kong, Sydney, and Paris are also important.
A trade booked at today’s price but delivered at a specified date in the future, a way of locking in an exchange rate.
A Forward/Forward deal is one where both legs of the deal have value dates greater than the current Spot value date.
Foreign exchange deal that matures on any day past the Spot delivery date. Forward Points (Forward Pips or Forward Spread) Forward price used to adjust a spot price to calculate a forward price. It is based on the current spot exchange rate, interest rate differential (see Forward Rate) and the number of days to delivery.
Forward rates are quoted in terms of forward points, which represents the difference between the forward and spot rates. To obtain the forward rate from the actual exchange rate the forward points are either added or subtracted from the exchange rate. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction, known as the Interest Rate Differential.
Usually comprises of the trading or dealing room/floor.
Analysis of economic data and political factors to forecast future currency movements and values.