Same Day Transaction
A transaction that matures on the day the transaction takes place (Value Today).
Rate at which foreign currency is sold at.
Actual physical exchange of one currency for another to complete a transaction and honour a contract.
The date by which an FX contract between two parties must be settled by the transference of funds between buyer and seller.
Risk associated with the non-settlement of the transaction by the counter party.
A market position where the client has sold a currency not already owned.
More potential sellers than buyers, which creates an environment where rapid price falls are likely.
The most common foreign exchange transaction. A transaction that occurs immediately with the transfer of funds to settle the contract usually taking place within two business days after the deal has been agreed. It is used when clients need to buy and sell currency and transfer it within the shortest period possible.
The overnight swap from the spot date to the next business day.
The price at which the currency is currently trading in the spot market.
The difference between the bid and ask price of a currency.
A speaker connected to an Interbank broker room that transmits live exchange rate prices so traders know where the bids and offers lie.
An active market that can absorb large volumes of currency without major moves.
A term for the Great British Pound.
Market slang for Swedish Krona.
Allows you to choose your maximum budget rate, and we’ll book the trade automatically should it reach that level, to save you from further losses.
A price level at which you would expect buying to take place and is recognised by technical analysts as a price which a currency will struggle to move below, which could result in a rebound of the exchange rate.
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 price as a differential between two dates of the swap.
Acronym for the Society for World-wide Interbank Telecommunications. A Belgian based company that provides the global electronic network for settlement of most foreign exchange transactions.
Is the analysis of market action through charts, past prices and volume trends to forecast future market activity such as price and trend developments. Technical analysis provides details of Support and Resistance levels and can identify changes in currency movements.
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.
A term used to describe a situation where a currency has traded to the top of its range and, as a consequence of market resistance, has failed to break into a new range.
Trade (Transaction) Date
The date on which a trade occurs.
The difference between the value of imports and exports. Often only reported in visible trade terms.
Transaction (Deal or Trade)
The buying or selling of currencies resulting from the acceptance of a price from a dealer.
The total money value of currency contracts traded is calculated by multiplying size by the number of contracts traded.
When both the bid and offer rates are quoted for a foreign exchange transaction.
The settlement date of a spot or forward contract; the day on which the two contracting parties exchange the currencies that are being bought or sold. A spot transaction usually has a Value Date two business days from the deal date. However, if a bank or public holiday falls in the country(s) of the foreign currency(s) within this period, then the value date then moves forward one business day. A transaction with a value date beyond two business days would usually be considered a forward contract.
Trade in merchandise goods as compared with capital flows and invisible trade.
A measure of the amount by which the price of a currency is expected to fluctuate over a given period.
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.
The graph showing changes in interest rate yield depending on time to maturity. A system originally developed in the bond markets. 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.