This is full financial glossary and forex glossary.You can read with more description Forex glossary – financial glossary.
A
Account History – Explain Account History
It can be explained as the list of all the transactions including trading as well as non-trading that are completed for a particular account.
Accounting Currency- what is accounting currency?
Accounting currency is defined as the money in which an account deposit is denominated. You should not confuse this currency with the currencies that are purchased and sold with the account money.
Accrual Swap – Explain Accrual Swap
It is defined as a rate of interest under which the counterparty pays a reference charge, generally three to six months LIBOR and gets LIBOR plus an important spread. The interest payments of this counterparty accumulate on those days when the charges stay within a specific range said by the preset lower and upper boundaries.
Aggregate Demand – What is Aggregate Demand?
It is used in a loose manner to explain all the demand of the public and private sector for services and goods that are manufactured by a country. In general, this can be interchanged with the Gross Domestic Product. Academic notions of the aggregate demand make the dissimilarity between the temporary and permanent and are regarded as a main function of the cost levels.
Aggregate Risk – Information about Aggregate Risk
Aggregate Risk varies depending on the context but in a general way it is explained as the exposure a consumer has to the latent movements of the forward and spot charges.
Aggregate Supply – Explain Aggregate Supply
Aggregate Supply calculates the entire volume of services and goods manufactured by an economy. Generally, a rise in demand leads to a growth of the aggregate supply in economy.
What is Aggressor?
It is explained as a trader who has committed themselves to the existing cost in the market.
Explain Agio
It is an Archaic expression used for explaining the dissimilarity or premium among the official charge and the market charge.
What is American Depositary Receipt?
It is a vehicle which enables the American investors in an effective manner to own the shares in overseas corporations. The trade of American Depository Receipt on the exchanges likes the conventional securities. The supporting bank collects the dividends, makes the payment of local taxes and translates the amount to dollars for distributing among the American shareholders. One should note that the American Depository Receipt is affected by both the performance of the company and by the changes in the rates of exchange.
Explain American Option
It is explained as a currency alternative which may be used at a given point of time before expiration.
What is Appreciation?
It is a general term used for explaining a currency that increases in value, as an effect of the market forces as contradictory to the official adjustment.
Arbitrage- what is arbitrage?
It is the immediate buying and selling of an equal security in various markets with the aim of gaining profit from the cost inconsistencies. As far as currency trading is concerned, arbitrage is regarded as a mismatch in the coupled rate of exchange between the three currencies or it is also regarded as the inefficiency between the similar securities that are listed in the various markets that takes place by the fluctuation of the rate of exchange.
What is around?
It is a dealer jargon used for quoting the forward discount or premium. For instance, “two around” would convert into two points on each side of the existing spot value.
Explain Asset Allocation
Asset Allocation is defined as the asset practice that separates money among various types of vehicles, markets and securities in order to attain a return which is calibrated to the risk profile of the investor.
Ask Price- What is Ask Price?
It is the cost at which a particular currency or a contract can be bought. In general, this can be defined as the number of quotation, which is generally the high cost. For instance, in the quotation, EUR/USD 1.4123/26, the Ask or offer price is nearly 1.4126 which signifies that you can purchase one Euro for about 1.4126 dollars. It is also regarded as the opposite of bid price.
What is Association Cambsite international?
It is explained as the universal affiliation of overseas exchange dealers that make use of the Forex trading together.
Explain At Best
It is a kind of order to purchase or sell products at an affordable rate that is present in the market.
What is At or Better?
It is a kind of order to make a deal or over a given cost.
At Forward Spread- What is At Forward Spread
This explains a situation where the forward cost for a certain time period is equal to the spot cost.
What is At Price Stop Order?
It is a kind of stop order that should be implemented at the ordered cost regardless of the condition of the market.
Explain At- the- Money
It explains an alternative whose exercise or strike cost is equal to the existing market cost of the original security.
Define Auction
Auction is explained as selling securities to highest bidder. As far as finance is concerned, it is generally used by the governments for allocating the government paper and foreign exchange like US Treasury Bills. There are times when the auctions are organized in connection with yield, rather than the cost.
Autocorrelation- What is autocorrelation?
It is the correlation between the changes in a variable in various times. If a cost is correlated in a negative manner, a fall in a single period suggests a rise in the next. If it was auto correlated positively, a fall indicates a fall in the next period also and vice versa.
Explain Average Rate Option
It is hedging equipment where a sequence of spot charges fixings during an alternative are used for calculating an average charge. If an average rate is under the striking cost, the bank should settle the dissimilarity with the consumer. Or else the choice expires without any payment. The average rate choices are made for those who demand protection against the unfavorable currency moves that wishes to retain the entire upside potential. It is also regarded as the Asian Option.
Explain Aussie
It is a slang used for Australian Dollar.
B
Explain Back Office
It is the department and the process of settlement of the financial exchange.
What is Back to Back?
It is the deal where a deal is made in a single currency against the loan which is denominated by other currency.
Balance Sheet- What is Balance Sheet?
It is the financial statement that shows the assets, liabilities and the equity of a shareholder on a certain date.
Explain Balance of Payments
It is defined as the methodical record of economic transaction in a given instance for a specific country. It refers to capital account, present account or both. A continuous balance of payments deficits leads to the depreciation of the currency.
What is Balance of Trade?
It is measured by subtracting the imports from the exports. Deficit is a term used for explaining a negative equilibrium of trade which arises when the imports crosses the exports. The term “Surplus” is used for defining a positive balance. It is related with the dissimilarity between the investment and savings.
Bank Of England- What is Bank of England?
It is defined as the Central Bank of UK whose actions in a direct manner weigh on the cost of Sterling.
Bank Line- What is Bank Line?
It is a credit line that the bank offers.
Bank Note- What is Bank Notes?
It is issued as the legal tender. It can also be converted into several currencies. Generally, it is excluded from the trading market.
Bar Chart- What is Bar Chart?
It is form of chart which consists of high and small cost, opening cost and closing price.
Barrier Option- What is barrier option?
It is a kind of option whose survival or value depends on whether security, currency breaks the predetermined cost level at a time during an option. Depending on the conditions of the market, it is referred as Down in call or down out call.
Base Currency- What is Base Currency?
It is the money used for the operating consequences of the institution or banks.
Basis- What is Basis?
It is the dissimilarity among the future cost and cash cost.
Basis Convergence- What is Basis Convergence?
It the procedure in which the basis moves to zero as expiry date comes nearer.
Basis Point- What is Basis Point?
It is defined as one cent of the total number. For instance, 25 basis points can also be regarded as .25%.
Basis Price –What is Basis Price?
The cost expressed in connection with yield to the maturity or return rate, rather than the real unit cost.
Basis Trading-What is basis trading?
It is the practice of occupying contrasting positions in spot and future market with the aim of gaining profit from the favorable changes among the two.
Basket- What is Basket?
It is the group of currencies generally used for managing the rate of exchange of other currency.
Bear Market- What is Bear Market?
While the precise standards keep on changing, it is described as an extended time period of the falling asset costs.
Bear (ish)-What is Bear(ish)?
It is an investor who thinks that the asset costs will decrease.
Bear Put Spread- What is Bear Put Spread?
It is an option strategy that capitalizes on the depreciating currency by purchasing a put alternative with an increased strike cost and selling it with a low striking cost.
Bid Price- What is Bid Price?
It is the cost at which a particular currency or contract is sold. In general, this can be easily regarded as the number present at the left part of the quotation, which is generally a low cost.
Big Figure- What is Big Figure?
It refers to the initial three digits of the rate of exchange like 2.31 in 2.3125. The huge figure is generally omitted in the dealership quotations; like that a quotation of 25/30 in dollar indicates a cost of nearly 2.3025.
Bilateral Clearing- What is Bilateral Clearing?
As far as a foreign currency is concerned, the payments are generally passed through the bank which is charged by eradicating the balance of payment.
Black-Scholes Model-What is Black Scholes Model?
It is a common choice pricing formula depending on the set of perfect assumptions that relates to the underlying currency or security.
Bollinger Bands- What is Bollinger Bands?
It is explained as technical analysis equipment used for measuring the lowness and highness of the cost related to the earlier trades that consists of three brands named as upper band, middle and lower band.
Book- What is Book?
It is the summary of a total position of a trader. It includes both loses and gains.
Booked- What is Booked?
It is defined as the position where the exchange is recorded, which differs from the country or location of compromise.
What is Break Even Point?
It is the cost in which the choice purchaser recovers the important premium paid that result in neither gain nor loss. With the call choice, the “break point” is defined as the premium added with the strike cost.
Break Of Which – What is Break of Which?
Depending on the sequence of prearranged levels, this explains the idea that if a cost breaks a particular level, it will shift to the following level and continue to move down or up.
Break Out- What is Break Out?
It explains a technical situation in which the security or currency is regarded to have exited the existing pattern like range or any other types of trend.
Breakaway Gap- What is Breakaway Gap?
It is the price gap that creates the following breakout representing a temporary costing inefficiency following a consolidation period.
Bretton Woods- What is Bretton Woods?
It is the 1944 agreement that utilized the cost of gold to fasten the rate of exchange for the important currencies. It was changed in 1971 by the floating rate of exchange that remains in its place.
Broken Dates- What is Broken Dates?
It explains the deals that involve non standard phases.
Broker-What is Broker?
It is an agent who performs orders to purchase and sell currencies. It can be for a charge or it can also depend on ask or bid spread. In the overseas exchange market, the brokers play the role of intermediaries between the banks. This is called as brokerage charge.
The Bull Market- What is Bull Market?
While the precise standards keep on changing, it describes about the extended period of increasing asset costs.
Bull(ish) – What is Bull(ish)?
It is an investor who thinks that the asset cost will increase.
Bull Spread- What is Bull Spread?
It is an option plan that capitalizes a moderate increase in rate of exchane, which is executed by purchasing a call choice with a low cost and selling it with the strike cost. It is also called as purchasing the spread.
Bulldogs- What is Bulldogs?
It is the bond issued by the foreign institutions in UK, which is denominated in the British Pounds.
Bullion-What is Bullion?
Bullions refer to the gold bars. It is different from the indirect possession of gold and coins.
Bundesbank (BUBA) – What is Budesbank?
It is Germany’s Central Bank and an important member of Central Bank.
Butterfly Spread- What is Butterfly Spread?
It is an option plan in which the options with various expiry dates and strike costs are purchased and sold in a simultaneous manner.
Buyer/Taker- What is Buyer/ Taker?
It refers to the purchaser or a holder of the option. A buyer has a right but it is not his duty to buy the security.
C
What is Cable?
It refers to the US Dollar and Sterling rate of exchange.
Calendar Spread- What is Calendar Spread?
It is the options plan which involves the buying of futures or option of the market that expires in a month and the immediate selling of another option of the similar market and the similar striking cost in a separate month.
Call Option-What is call option?
It is defined as a contract where the purchaser has a right but it is not his duty to buy a certain security for a striking cost or before the expiry date.
Cancel- What is Cancel?
It is defined as the process to erase an earlier finder before it starts performing.
Candlestick Chart- What is Candlestick Chart?
It is a kind of chart that utilizes shaded bars to show the trading range and the opening and finishing costs for the consecutive time periods.
Ceiling/Cap-What is ceiling or cap?
It is the maximum interest rate that you can charge for a specific loan. It is also defined as a contradiction of a floor.
What is capacity Utilization?
It is the indicator of the inflation which the Reserve Bank releases. It is also used for measuring the percentage of the accessible resources being used by the factories, utilities and mines.
Capital-What is capital?
It is defined as the financial assets of products like cash.
Capital Account-What is a Capital Account?
This is one of the main components of balance of payment, another being the existing account. This is the result of private and public international investment flow in a country. It includes portfolio investment, foreign investment and several other types of investments.
Capital Gains-What is Capital Gains?
It is the gain made by selling the asset. It is used for the tax purpose.
Carry Grid- What is Carry Grid?
It is a detailed trading scheme made for earning profit from the carry trading plan.
Carry Trade- What is Carry Trade?
It is defined as a trading plan that involves the selling of low acquiescent currency in respect of the high yielding choice, with an aim to find a return in the differential or spread.
Cash on Deposit- What is Cash on Deposit?
It is the total money collected in the account.
What is Cash Market?
It is also defined as spot market which is contradictory to the future market.
Cash Transaction- What is Cash Transaction?
It is the one day settlement made for the transaction of the currency.
What is Central Bank?
It is a governmental or semi government firm that organizes monetary policy and at the same time manages the rate of exchange for the currency and economy. It can be charged with the help of printing cash.
Central Bank Intervention- What is central bank intervention?
It is the central bank that buys and sells its money on spot market for bringing a desired rate of exchange.
Certificate of Deposit- What is Certificate of Deposit?
It is the Time deposit provided by the banks with a certain fixed tenure and generally with a fixed rate of interest. It is planned that the certificate of deposit should be held till it gets matured during which the money can be withdrawn with its interest.
Channel-What is Channel?
It can be defined as the uptrend, sideways and downtrend whose boundaries are marked in a clear manner by two straight lines.
Chartis- What is Chartis?
It is a person moves toward trading, depending on the graphs and charts for discerning the trends and for predicting the price movements in future.
Chooser Option- What is chooser option?
It is the kind of option in which the owner can select whether the choice is a call option during an option.
Clean Float-What is Clean Float?
Clean Float is the rate of exchange where the charge is determined by market force. It does not get any intervention from the Central bank.
Cleared Funds- What is Cleared Funds?
It is the settled money that is available for trading in a free manner.
What is Clearing House Payment system?
It is defined as the international wire transferring system that most of the major banks use.
Closed Position- What is closed position?
It is the effect that arises when a position gets closed, in which the equal trade is created to eradicate the exposure to a certain currency. For instance, a stage of 100 GPB can be easily closed by purchasing 100 USD.
Closing Market Rate- What is Closing Market Price?
It the market charge calculated when the day ends.
Clearing- What is Clearing?
It is the procedure of settling a particular trade.
CME Group- What is CME Group?
It the largest future exchange in the world which consists of Chicago Mercantile Exchange, New York exchange and Chicago Trade.
Coincident Indicator- What is Coincident Indicator?
It is a kind of indicator that goes along a line with a general business cycle. An example of coincident indicator is GDP.
Commitments-What is Commitments?
It indicates the number of derivative agreements like for example, options and futures. These are presently active on a certain security. It is also called as open Interest.
What is Compound Option?
It is a choice where the instrument is another choice. A compound option has tow dates of expiry and two strike costs.
Contagion- What is Contagion?
It is the phenomenon where the economic crisis starts spreading from a certain region, market or economy to another.
Collateral- What is Collateral?
It is defined as an asset used for securing a loan.
Commission-What is Commission?
It is the transaction charge that a broker charges.
What is Commodity Future Trading Commission?
It is an independent agency belonging to the government of U.S which is charged with the regulating product, money and financial options and futures.
Confirmation- What is confirmation?
Confirmation is the written correspondence that contains detailed information about trading that includes execution date and time, cost, commission and quantity.
Construction Spending- What is construction Spending?
It is an economic indicator that the Department of Commerce in US releases every month that indicates the total spending needed for constructing a new building.
Consumer Confidence- What is consumer confidence?
It is a level of optimism that the consumers think about the whole economic state and their financial situation. Consumer confidence is measured by using the surveys, among which the popular one is conducted by Michigan University.
Consumer Price Index- What is Consumer Price Index?
It is the most closely noticed economic statistics. It calculates a change in the cost for a repeated market of services and goods from a period to the following time in the similar area.
Contango-What is Contagno?
It is a sloping curve for the forward costs. For instance, it occurs when the future cost of an item is higher when compared to the spot cost.
Continuation- What is continuation?
It is the extension of a current tendency.
What is Continuous Linked Settlement?
It is the system for settling the overseas exchange transactions between the important banks that asserts to eradicate settlement danger.
Contract- What is Contract?
It is a trading unit. $100,000 is a general lot in the trading market. $10,000 is defined as a mini lot.
Contract for difference- What is Contract for Difference?
It is defined as the agreement between the client and the provider to replace the dissimilarity between the closing opening values of contract.
Conversion Rate- What is conversion rate?
It is a term used for rate of exchange.
Convertible Currency- What is Convertible Currency?
It is a currency which can be relaced for another currency without special consent. Almost every important currencies of the world can be converted totally with the exception of Yuan.
What is Co-owner?
It is a holder of secondary account.
Copey- What is Copey?
It is a slang expression used for Krone in Danish.
Correction- What is Correction?
It is the partial turnaround in the current trend or the pullback after the unexpected, huge move for compensating an overreaction.
Correlation- What is correlation?
It calculates the degree at which the changes in two different variables and assets are related to. The general measurement of correlation is correlation coefficient. A correlation having -1 signifies that they are correlated in a negative way. The correlation of one signifies that they are correlated in a perfect manner.
Correspondent Bank- What is Correspondent Bank?
It is a bank that performs various tasks for other banks which does not have any branch in foreign countries.
Counter Currency- What is counter currency?
It is the second currency in the list of Currency pair. For instance, in USD, Sterling is counter currency. It is also called as Quote currency.
What is Counterparty?
It is a participant in a financial exchange.
Countervalue- What is countervalue?
It is the value of counter currency in the Forex trading. For instance, in a trade that involves buying money against the dollar, the counter value is the USD amount of exchange.
Country Risk- What is Country Risk?
It refers to the probability that alters the business surrounding that affects operating profits adversely or the cost of products in a particular country. These alterations can be the effect of political and financial factors.
Covariance- What is Covariance?
It is the measurement used to find out how the two random variables act with each other. It is different from the correlation as it includes measurements of magnitude of differences as contradictory to the dimensionless correlation coefficient.
Cover on Approach- What is Cover on approach?
It is a recommendation used for closing the trade depending on the predicted approach of a vital supporting stage.
What is Cover on Bounce?
It is a recommendation to stop trading depending on the predicted “bounce”.
Covered Call- What is covered call?
It is an option plan in which the person selling the call options possesses the equivalent quantity of the instrument like the shares of stock.
What is Crawling peg?
It is a kind of exchange rate rule in which the charge is fixed, but is adjusted in a periodic manner.
Credit Default Swap- What is Credit Default Swap?
It is the monetary contract in which a person selling the products is at a risk of paying a periodic charge on the amount of indication obligation, in return of the payment.
Credit Risk- What is credit Risk?
It is a risk that an exchanger will not repay the loan in time. It is generally regarded as Default Risk.
What is Credit Spread?
It is interest margin on the relevant benchmark that represents extra interest that the issuer pays to manage the incremental danger of the person over danger free charge.
Cross-Rate- What is cross rate?
It is an exchange rate originated by triangulating the two different exchange rates. It is used when the two currencies cannot be exchanged in a direct manner. Third party money like US dollar can exchange it in a direct way.
Cup with Handle- What is Cup With Handle?
It is the technical pattern used for predicting the starting of a rising trend. An outline that starts to curve upwards and arrives at “cup line” is said to show bullishness.
Currency Basket- What is currency Basket?
It refers to the group of money collected together, generally by Central bank for fixing a rate of exchange.
Currency Symbol- What is currency symbol?
It is a code made of three letter used as an abbreviation for a money.
What is currency Pair?
It consists of two different currencies used for creating a rate of exchange.
Currency Risk-What is currency Risk?
It is the possibility that the currency depreciation negatively affects the cost of one’s valuable asset, mainly the ones which are denominated in the foreign money.
What is Currency Swap?
It is explained as the agreement between two different parties in exchange of main and fixed rate of interest on loan of a single currency.
Current Account- What is current accounts?
This is one among the two main components of balance of payment and the other is capital account. This is defined as the total of balance of trade, total factor income and total transfer payment.
Custodian- What is custodian?
It can be a person, bank or an organization which is responsible for protecting the financial assets of a person.
Cyclical- What is cyclical?
It is the stock or security that moves with the economy, in which the economy earns profit if it booms and loses if the economy gets weak.
D
Daily Charts- What is Daily Chart?
It is the chart that encapsulates regular cost movements for a cash pair.
What is daily cut off?
It is the time in a day selected by a trader for demarcating the end of a trading day and starting of the next trading day, importantly because the Forex markets work for 24 hours in a day.
Day Order- What is day order?
It is the purchasing or selling order that expires automatically when the present trading day comes to an end.
What is day trading?
It is an approach to trade which involves making an entry and closing the trades on that day itself or during the same trading conference.
Deal Blotter- What is Deal Brother?
It is a list of different transactions which gets completed on a dealing day.
What is a Deal Ticket?
The trader records the important details of the exchange that differs in a slight manner from a statement attained by the consumer.
Dealer- Who is a Dealer?
It is the individual or a firm that plays the role of a principal in the exchange. The most important people acquire one side, planning to earn a profit by closing the position in the trade with the other party. On the contrary to the brokers, who play the role of mere intermediaries, most of the dealers are at a high risk.
Default- What is default?
It is the failure when an issuer is unable to create timely payments of principal as well as interest when kept due.
Deficit- What is deficit?
It explains large number of liabilities over the assets, losses over the gains and expenditure over the profits.
Deflator-What is a deflator?
It is a kind of adjustment which makes the nominal GDP to actual GDP, by taking the rise in price into consideration.
Deflation- What is deflation?
It is a fall in the general cost level of services and goods, where the rate of rise in price goes less than zero percent which in turn increases a real value of finance.
Delivery- What is delivery?
It is the electronic or physical exchange by the purchaser or seller of given currencies.
Delta- What is Delta?
It is the charge of changing an option sot with due respect to the alterations in the asset price.
What is Demo Accounts?
This is the Forex practice account at free of cost that allows the beginners to calculate the gains from hypothetical trading.
Depreciation- What is Depreciation?
It is explained as the fall in value of the asset, security or currency.
Depth of Market- What is Depth of market?
It is the volume of purchasing or selling orders that has to be exchanged for a certain amount of money at a specific point of time.
Details- What is details?
It is the necessary information used for executing the Forex exchange that includes currency rate, time, pair, size and date.
Derivative- What is Derivative?
It is a financial tool whose value results from the fundamental security.
What is Descending Triangles?
It is a trading pattern that contains two comparable lows that forms a line beneath. When the support at the lower part breaks off, the triangle breaks down. It is regarded as a signal indicating bearishness.
Deutschmark- What is Deutschmark?
It is the previous currency of Germany replaced by Euro. It was during the time when European Union included Germany also.
Devaluation- What is Devaluation?
It is a depreciation of money which generally gets affected by Central Bank.
What is Direct Quote?
It is a quote indicating different units of domestic money per fixed currency units.
Dirty Float- What is dirty float?
It the regime of rate of exchange in which money is not attached outright, but the Central Bank manages it with the aim of preventing fluctuations while exchanging rate.
What is discount rate?
It is the interest rate that a depository institution charges to use temporary funds from the Reserve Bank in a direct manner.
Discount Spread- What is discount spread?
It is the situation where the bid cost of an advance spread charge is lower than the ask cost.
Discretionary Account- What is Discretionary account?
It is a kind of account where a consumer permits an organization to take the decisions regarding trading on her or his behalf.
Disinflation- What is Disinflation?
It is defined as the slowing of the rate of inflation.
Divergence- What is divergence?
It explains the phenomenon where a technical sign and corresponding cost chart do not surrender the similar bottoms or peaks.
What is diversified carry basket?
It is a kind of trading plan in which different people carry out trades in a simultaneous manner, for reducing the losses and the dangers of a specific trade.
Double Barrier Option- What is double barrier option?
It is a kind of option that incorporates the level of two knock out and knock in on each side of the place. This is used by the people having strong thoughts on resistance and support stage.
What is Double and Bottom Top?
It is the trading model that consists of higher and lower limit which have been touched two times but has never been breached. Generally, it is interpreted as an indicator of uncertainty. On the other hand, when the money breaks from the series, it becomes more important.
Dow Theory- What is Dow Theory?
It is described as an idea that underpins technical analysis, posting that every important trends can be separated into three stages named as acceleration, consolidation and entrance.
Drawdown- What is drawdown?
It is a fall in the cost of an account. This is measured by subtracting the lowest from the highest.
Dual Currency Service- What is dual currency service?
It is the overseas exchange tool that allows the investors to place money into an item that moves in accordance with the exchange between the two important finances.
What is a dual currency swap?
It is a kind of swap used for hedging the bonds of dual currency in which the person issuing money has an option with them to repay the main amount in two ways, i.e. either in the form of base currency or in the form of alternative currency.
Dual Exchange Rate- What is dual exchange rate?
It is the condition where you will find an exchange rate and a parallel rate of black market. It is also called as two level markets.
What is durable goods order?
It is the monthly report that calculates the customer expenditure on permanent purchases, items that lasts for a long time period. It is meant for measuring the strength of the modern industry.
Easing- What is easing?
It is the utilization of monetary policy for expanding the supply of money, in two ways either by lessening the interest rate or by the help of market operations.
Econometrics- What is econometrics?
It is a part of economics which teaches one to create and apply quantitative methods to study the economic principles.
Economic Calendar- What is economic calendar?
It is a kind of calendar which is made for informing the financiers and the traders about the planned important economic indicators, reports by the government and speeches said by some powerful people.
What is economic indicator?
It is the statistic that looks for substituting the present stability and economic growth. The economic pointers fall into different categories named as lagging, leading, coincident.
What is effective exchange rate?
It is the utilization of trade or the existing account balance to obtain the proper exchange rate of the country.
Efficient Market Theory- What is efficient market theory?
It is a notion that the financial markets are efficient or that the costs on the assets that are traded reflects all the popular information and earlier costs and change to show new information.
EFT- What is EFT?
It stands for Electronic Fund Transfer.
What is Elliot Wave Theory?
It is a principle that says that the psychology of a collective investor shifts from optimism to the pessimism and vice versa. These shifts create patterns, as seen in the movements of price in the market ranging from minutes to several decades.
Envelopes- What is Envelopes?
While the Bollinger Bands place the boundary lines depending on the standard deviations, the envelopes place the lines at a fixed point of percentage over and under an average line, showing an entry and exit point for trading.
What is end of day?
This is a kind of accounting procedure, where the cost of assets is recorded when the trading day comes to an end depending on the closing cost and rate.
Equilibrium- What is equilibrium?
It is the cost level or range that represents a balance between the supply and demand for a certain pair of currency.
Escrow Account- What is Escrow Account?
It is a segregated account which helps in separating the consumer deposits from the operating funds of the dealer.
Euro- What is Euro?
It is the official currency of sixteen among the twenty seven member states of Union of Europe. The states, collectively known as Eurozone include Greece, Ireland, Belgium, Germany, Finland, Luxembourg, Slovenia, Portugal, Spain and Netherlands.
What is Euro Interbank Rate?
It is the rate at which the term deposits of Euro Interbank present are provided by a single bank to another major bank.
Eurobond- What is Eurobond?
It is the bond in the US dollar or any other currency which is sold to the investors who do not live in a country whose currency can be utilized.
Eurocurrency- What is Eurocurrency?
It is the currency which is deposited in the financial institution placed at the outer region where the money is mainly used.
Eurodollar Bonds- What is Eurodollar bonds?
It is the kind of Euro bond that pays both principal and interest in euros, whose features are not generally regulated by SEC.
What is European Central Bank?
It is the central Bank meant for Monetary Union.
What is European Style option?
It is an option or a covered warranty that is exercised during the expiry date.
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European Union- What is European Union?
It is the political union consisting of twenty seven different states placed primarily in the Western side of Europe.
What is an excess margin deposit?
It is the deposited money in the trading account over and under the basic margin needs.
Execution- What is execution?
It is the term used when a trade gets completed.
Exercise- What is exercise?
It is action done by the owner taking the benefits of an opportunity or the right provided by the financial institution or a company. This includes choices, warranties and other important financial instruments.
Exotics- What is exotics?
It is the money which is not traded in an active manner and is used in the contra distinction to important currencies.
Exotic Option- What is exotic option?
It is the derivative which has certain features that make it more difficult than the generally traded items. These products are generally traded in the counter or are fixed in the notes.
Expiration Date- What is expiration date?
It is a date after which the financial contract or the derivate does not remain applicable.
What is exponential moving average?
It is generally compared with the simple average, which deals out weight in an equal manner across the series of data; moving averages are greater to the current costs or data.
Exposure- What is Exposure?
It is defined as the total of long as well as short situations for a specific currency. 6245
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Face Value- What is face value?
It is the value of bond that has to be paid because of maturity. Par Value is another name of face value.
What are Factory Orders?
It is the economic indicator that calculates new orders for nondurable as well as durable products.
Fast Market- What is fast market?
It is a pressure in market, where the costs move very fast to disseminate.
Federal Insurance Corporation- What is Federal Insurance Corporation?
It is the regulatory agency in US which is charged with the regulating banks of US. The Federal Insurance Corporation offers insurance of about $100,000 each account.
What is Federal Funds Rate?
The rate of interest at which the private depository organizations provide balances at Federal Reserve to several depository firms, generally overnight. It is guided by the Market Committee.
What is Federal Market Committee?
This committee consists of the members of Federal Reserve which arrange a meeting nearly eight times for discussing the financial policy.
What is Federal Reserve Bank?
It is the central bank in United States which is held responsible for utilizing the monetary policy for promoting growth and stability of cost.
Federal Reserve Board- What is Federal Reserve Board?
It is made of the senior members of Federal Reserve, in which everyone is selected by the President of US. The Fed Reserve Board’s chairman serves nearly a term of 4 years, whereas other members serve nearly tenure of 14 years.
Fiat Currency- What is Fiat Currency?
It is the money that the government declares to be the legal tender and is not backed by other commodities, like gold.
Fibonacci Numbers- What is Fibonacci numbers?
It is the series of numbers where every consecutive number is the total of two earlier numbers. These numbers are utilized in currency markets for developing trading algorithms, plans and applications. Some of the common forms of Fibonacci numbers are Fibonacci Time Extension, Fibonacci Arc, Fibonacci fan and Fibonacci Arc.
Fill- What is fill?
It is execution of the order to sell or buy.
What is fill or kill?
It is the kind of order that gets rejected or completed in whole.
Fill Price- What is fill price?
It is the cost at which a purchase or selling an order is initiated.
What is firm quote?
It is the order to purchase or sell money which cannot be cancelled.
What is first in and first out?
It is the account rule that says that all the positions that are opened within a certain currency pair is settled in the order as it was actually unlocked.
What is financial services authority?
It is the agency designated by UK Treasury for regulating the financial industry of UK.
Fiscal Policy- What is fiscal policy?
It is the tax policy, government expenditure and government initiatives made to optimize the financial performance.
What is Fisher Effect?
It is the theory according to which the cash moves from a low yielding currency to high yielding currency as the investors pursue high rate of interest.
Fixed Exchange Rate- What is fixed exchange rate?
It is the regime of exchange rate in which the currency is attached by Central Bank. This is done so that the exchange rate does not fluctuate against another currency. Currencies can be attached to another currencies and commodities like gold.
Fixing- What is fixing?
It is process used for determining the rates or costs that helps in attaining a balance between purchasing and selling the pressure.
What is flag and pennant?
It is a trading style which is characterized by a movement having a large slope which is in turn followed by a consolidation period. It is considered as a bullish pattern as a whole, as it is expected that the style will rise.
Flat/Square- What is flat or square?
It is the situation where the position is closed and tow positions survive canceling each one of them.
What is flat on failure?
It is the recommendation to gain profits on trade if the tests of rate of exchange fail for breaking a specific stage.
What is floating interest rate?
It is the rate of interest that adjusts according to the market forces. It is opposite to fixed rate of interest.
Floor- What is floor?
It is the lowest limit which the controlling parties restrict. It is the opposite of cap.
Floortion- What is floortion?
It is the kind of compound choice, where the buyer has a right but it is not his duty to enter the floor at the prearranged rate on a fixed date.
Force Majeure- What is Force Majeure?
It is the contractual clause relieving the party from satisfying the obligations of an agreement as an effect of unusual event.
Foreign Exchange- What is Foreign Exchange?
It is the purchase and selling of the finances.
What is Foreign currency effect?
It is the possibility of changes in the rate of exchange for affecting the returns on the foreign investments.
Forward Contract- What is forward contract?
It is the derivative agreement between any of the two parties to purchase or sell a benefit at a fixed point of time at a fixed price. This is distinguished with spot contract, described as an agreement to purchase or sell the asset.
Forward Points- What is Forward Point?
It is the pips that are added or subtracted from latest rate of exchange for calculating the forward cost.
Forward Rate- What is Forward rate?
It is the rate of interest for a certain time period in future. For instance, it can refer to a rate of interest of one year.
Forward rate agreement- What is Forward rate agreement?
It is the contract of interest rate in which the purchaser and the seller agrees to exchange dissimilarity between latest rate of interest and the earlier agreed fixed rate of interest.
Free Reserves- What is Free Reserves?
It is the border by which the reserves cross borrowings. It is also called as surplus reserves.
What is Front Office?
It refers to the personnel with whom the consumers have the chance to interrelate.
What is fundamental analysis?
It is the study of economic pointers and the political and latest events that affects the direction of the financial markets. Technical analysis is the opposite of fundamental analysis.
Fundamental Trader- What is fundamental Trader?
It is a trader that depends on the basic analysis.
What is funding currency?
It is a low currency, used for borrowing cash so that its proceedings can be provided in the high yielding money.
Futures Contract- What is Futures Contract?
It is the standardized contract to purchase or sell a specific asset or commodity of perfect quality at a particular date in future at a given price. The contracts vary from the forward contracts in which it is traded on the future exchange.
FX Forward- What is FX Forward?
It is the obligation for buying or selling money at a fixed cost on the agreed date. The future or forward cost is determined by regulating the spot or latest cost to find the changes in the rate of interest.
Gamma- What is Gamma?
It is the second order change in the order of a choice, calculating the change in delta in respect to the alterations in the price of asset.
G8- What is G8?
It is the forum for the governments of eight different nations of northern hemisphere consisting of countries like Germany, US, France, Canada, Japan, Russia and Italy. Earlier known as G7 and there are times when it is expanded to G20 and G10.
Gold Contract- What is Gold Contract?
It is the standard unit of gold trading which is equal to ten ounces.
Gold Standard- What is Gold Standard?
It is a kind of rate command that fixes money to the cost of gold. Earlier to 1973, the cost of Dollar was same as the cost of gold and other type currencies were fixed in dollar.
Golden Cross- What is Golden Cross?
It refers to the technical analysis style in which the two averages starts intersecting and indicates that the reference money will also move in the similar direction.
Goldilocks Economy- What is Goldilocks economy?
It is the expression credited to Greenspan that explains an economy which is distinguished by both moderate inflation and steady growth. In simple words, it is neither cold nor too hot.
Good Cancelled Order- what is good cancelled order?
It is the kind of order to purchase or sell money at a permanent price that does not expire until the order is cancelled or executed.
Grid Trading- What is Grid Trading?
It is a sequence of different positions and orders that are undertaken by a prearranged spread.
Gross- What is Gross?
It is an amount which is calculated prior to the deduction of commissions or tax.
Gross Domestic Product- What is gross domestic product?
It is the general measurement of the economic performance of an economy which is similar to the market cost of all the final services and goods.
Gross National Product- What is Gross National Product?
It is the value of services and goods that a country produces in a year and the income which is earned by the people living abroad. It is subtracted from the income that the foreigners earn in the nation.
What is Hard Currency?
It is any “major” currency in which the investors have confidence.
Head And Shoulders- What is head and shoulders?
It refers to the technical analysis style that resembles two different peaks with a high peak sandwiched in two shoulders. The lower boundary that is reached by both the shoulders is considered as an important point the traders can utilize to enter and exit spots.
Hedge/Hedging- What is hedging?
It is the trading plan with the aim of lessening the risk from the adverse cost movements that surrounds the main position. Generally, it involves finding a position in other currency or security or for using the derivatives to limit the downside.
Hedge Fund- What is hedge fund?
It is private investment money, generally open for certain investors. It is subjected to few regulations and restrictions, hedge money can utilize aggressive, generally leveraged investment plans in chase of high returns.
High/Low- What is high or low?
It is the regular high and low costs.
Historical Volatility- What is historical Volatility?
It is the volatility in an underlying asset cost, rate and return over a certain time period in past days. This is used for checking whether the indirect volatility of a choice is costly compared to the historical averages.
What is hit the bid?
It is the acceptance by a purchaser or seller of other’s cost.
Horizontal Spread- What is horizontal spread?
It is the options plan which includes the buying of an option and simultaneously sells the similar kind of option with similar strike cost but with a different expiry date.
Housing starts- What is housing starts?
It is the economic indicator that calculates the number of residential buildings that started construction in the earlier month.
Hyperinflation- What is Hyperinflation?
This type of inflation is really high and cannot be controlled easily, where the costs increases in a rapid manner as the money loses its worth. Descriptions keep on changing as one standard is the inflation that exceeds by nearly 50% in a month and by 100% in a year.
Illiquid- What is Illiquid?
It is the currency or security which is not actively traded.
Implied volatility- What is implied volatility?
It is a derived volatility of a benefit measured in an indirect manner from the options costs.
In the Money- What is in the money?
It refers to the call or a put option having intrinsic value as the exercise cost is under or over, respectively, the latest market cost of fundamental security.
Index Funds- What is index fund?
It is the investment fund which seeks to reflect the returns of the directory of the market by investing in securities directly that makes the index.
Indicative Quote- What is Indicative Quote?
It is the cost that a dealer quotes for collecting information. It is contradictory to firm Quote.
What is industrial production?
It is the economic indicator that calculates the whole output value created by the manufacturers, utilities and mines. This data point reflects the expansions and the contractions of business cycle and acts as an indicator of growth.
Inflation- What is inflation?
It refers to the general increase in the cost level of services and goods. It is calculated by the price index, leading to a fall in the money’s buying power.
What is initial margin?
It is the money needed to make an entry into the leveraged exchange. It is generally quoted as a proportion of the asset’s cost.
Interbank/Interdealer Market- What is the Interbank market?
This is a market which is open for the big financial organizations.
Interbank Rates- What is Interbank Rates?
It is the overseas exchange rates that are quoted by the huge multinational banking organizations.
Interest- what is interest?
It is the cost of exchanging money which is expressed as the rate for a certain time period.
Interest Rate Swap- What is interest rate swap?
It is a derivative in which a party exchanges a tributary of payments of interest for other stream of the money flow.
Institute of Supply Management Manufacturing Index- What is ISM?
It is explained as the economic indicator that calculates the condition of the manufacturing sector of US by reviewing executives on the expectations for prospect production, orders, employment, deliveries and inventories. The values more than 50 generally display a growth, whereas the values under 50 show contraction.
International Organization of Standardization- What is the international organization of Standardization?
It is the international body that consists of representatives from different national standard institutions, which determines the different codes of trading utilized by the Forex traders like EUR used for the Euro.
Intervention- what is intervention?
It is the act of Central Bank purchasing or selling money in the current market for influencing the worth of its money.
Monetary Fund- What is international monetary fund?
It is the international organization overseeing the economic system by following various macroeconomic policies of the member countries, with an effect on the exchange rate and the payment balance.
International Monetary Market- What is International Monetary Market?
It is explained as an arm of Chicago Exchange that consists of a list of various currencies and monetary futures.
International Securities Association- What is International Securities association?
It is an institution charged with the regulating inters bank exchanges and markets.
Intra-Day Position- What is Intra day position?
It is the position opened and also closed on the trading day itself.
Intrinsic Value- What is intrinsic value?
It is measured as the different between the exercise cost of an option and the existing market cost of underlying security. It can be zero also. (8738)
Jobber- What is Jobber?
It is a trader whose aim is to attain small but consistent, temporary gains.
Joint Account- What is Join Account?
It is the investment or bank account that two or more than two people owns.
Kiwi- What is Kiwi?
It is a slang expression used for Dollar of New Zealand.
What is Key Currency?
It is the act of connecting a currency to another one, generally undertaken by a country towards an important dealing partner.
What is knock in?
It is the procedure in which a European barrier becomes energetic as the option is concerned with money.
Knock Out- What is knock out?
It is the procedure in which a European barrier becomes inactive as an underlying choice falls in shortage of money.
Labor Productivity- What is labor productivity?
It is the kind of economic indicator calculates the growth in the efficiency of labor for manufacturing products and services.
What is ladder Option?
It is the kind of choice that bolts in profits as the asset reaches the predetermined cost levels.
Lagging Indicator- What is lagging indicator?
It is an economic pointer that reacts in a slow manner to the changes in economy and thus, has few predictive values.
Lapse- What is lapse?
It is a choice that has expired.
What is lay off?
It is defined as the act of performing an exchange for offsetting an earlier transaction and then goes back to the square location.
What is lesser developed country?
It is the term used for explaining a nation having a low stage of well being of the material. You will not find an internationally recognized explanation of the developed nation.
What is leading indicators?
It is the economic pointers used for forecasting economic activity as they start changing before it is done by the economy.
Leads and Lags- What is leads and lags?
It is the effect on the overseas trade payments of the anticipated move in an exchange rate, generally a devaluation, where the exporters and importers increase or slow their payments for achieving the favorable conversion charges.
Leverage- What is Leverage?
It is the ability to exchange money to money trading or investing. The amount that one can exchange differs between the brokers and is generally quoted as number of large position sizes to the deposited money.
Liability- What is liability?
It is a claim on the assets of a company. In the Forex trading, the obligation for delivering a currency amount at a specific future date, related with the spot or forward exchange.
Limit Order- What is Limit order?
It is a kind of purchase or selling order that cannot be carried out unless a specific low or high price is satisfied respectively.
Limit Price- What is limit price?
It is the specified cost linked with the limit arrangement.
What is limited convertibility?
It is the condition where money cannot be exchanged in a free manner for another currency.
Line Chart- What is line chart?
It is the most general kind of chart, which is designed with a sequence of different cost levels with time and links them with different lines.
Liquid Market- What is liquid market?
It is the market where large numbers of currency is bought and then sold each day.
Liquidation-What is Liquidation?
It is the exchange that closes or offsets an earlier position.
Liquidity- What is liquidity?
It is the ability of a currency or an asset to convert with the help of purchase or selling without giving rise to an important movement in the cost and with minimum loses of cost.
What is London Interbank rate?
It is the regular reference charge on the rate of interest at which the banks exchange unsecured money from different banks in Interbank market in London. It is comparable to U.S Federal rate of funds.
What is London Financial Futures Exchange?
It is the association which is composed of three biggest future exchanges in UK.
Long- What is long?
As far as exchanging a money pair is concerned, long money is the first one in the list. The aim of becoming long is to gain profit from the appreciation of money.
Lookback Option- What is lookback option?
It is the kind of option that permits the owner to look at the costs of the asset in the life of choice for selecting the best exercise cost.
Loonie- What is Loonie?
It is a slang expression used for the Canadian Dollar.
Lot-What is Lot?
It is defined as the standardized amount generally used in the Forex trading.
Macro-based- What is macro based?
It is the investment strategy that is driven by the considerations of the macroeconomic.
Maintenance- What is maintenance?
It is the lowest margin ratio over which the balance of the margin account should remain. Falling below a certain level triggers a margin cal, where a consumer will request to either deposit money or sell the securities for returning the margin of maintenance to a certain level that can be accepted.
Managed Float- What is managed float?
It is the kind of rate of exchange regime where the Central Banks intervene for controlling the movements of the balanced currency.
What is manual trading?
It is the process of using the trades in a manual manner without using the API.
Manufacturing Production- What is manufacturing production?
It is an economic pointer that calculates the whole production of manufacturing component of manufacturing production.
Margin- What is margin?
It is the minimum deposit needed to maintain the position.
What is Margin Account?
It is the kind of account that permits leveraged purchasing or selling.
Margin Call- What is margin call?
It is the written or oral notification that requests a consumer to either deposit money or sell the securities for returning he maintenance margin to such a level that is accepted.
Marginal Risk- What is marginal risk?
It is defined as a risk that a consumer will go bankrupt after making an entry into the contract. In this type of a situation, the person who issues money should close commitment following the danger of paying the marginal association on agreement.
What is marked to market?
It is the accounting standard regarding the assignment of value to a specific position held in the financial instrument depending on the existing market cost.
What is market close?
It is the time used for demarcating the days of trading for administrative reasons. It plays an important role as the Forex trading market operates for the whole day.
Market Maker- What is Market maker?
It is a dealer who offers a quote having two way named as bid and the ask cost in which they prepare themselves to sell or purchase.
Market Order- What is market order?
It is a kind of order for the instant finishing at best cost.
Market Rate- What is the market rate?
It is the most recent quote for the money pair.
What is market risk?
It is explained as the risk that the supply and demand pressures can result in the investment value to change.
Martingale System- What is martingale system?
Betting the plan where the gambler doubles the bet followed by each defeat so that an initial win recovers the earlier losses and wins a gain which is equal to the actual stake.
Maturity- What is maturity?
It is the date on which the payment of the financial obligation is kept due.
Maximum Leverage- What is maximum leverage?
It is the biggest position that an offered margin deposit covers.
Mean Reversion- What is mean reversion?
It is the theory and an observed phenomenon where the costs and returns move towards the permanent averages.
MetaTrader- What is meta trader?
It is a famous trading platform conducted online for the financial institutions that deals with the Forex and derivative market.
Middle Rate- What is middle rate?
It is defined as the cost between ask and bid quote provided by the dealers.
What are mine and yours?
It is used to signal when the trader wants to purchase or sell.
Mini Account- What is mini account?
It is a kind of trading that permits the traders to deal partially in different dimensions.
What is minimum price contract?
It is the contract that comes with a provision offering a guarantee of a minimum cost at delivering the commodity.
Mobile Trading- What is mobile trading?
It is defined as utilization of moving equipments like pda and cellular phone for executing the Forex exchange.
Module- What is module?
It is the part of a program of a computer that performs a certain function and can also be used single-handedly or in the combination with several modules of the similar program.
Momentum- What is momentum?
It is the tendency of currencies and securities to carry on moving in the similar direction where they move currently.
Monetarist- What is monetarist?
It is one who thinks that cash and fiscal policy have a sturdy effect on the financial growth.
Monetary Base- What is monetary base?
It is defined as the coins and notes that are circulated in the bank vaults and reserves which the commercial banks hold their respective accounts with Central Bank.
Monetary Easing- What is monetary easing?
It is the Central Bank that performs to increase the rate of money and raise the supply of money, generally by lowering the rate of interest or purchasing securities in open market.
What is money manager?
It can be both a person and a firm who is held responsible for the whole financial range of other firm or individual. A money manager receives performance or management fess in the form of compensation.
Monetary Policy- What is monetary policy?
It is defined as different equipments used by the Bank to influence the supply of money and finally to restrain the growth of the economy and rise in price.
Monetary Policy Committee- What is monetary policy committee?
It is the subcommittee of Bank of England that meets each month to choose the rate of interest in UK.
Money Supply- What is money supply?
It is the total money found in the economy at a certain point of time. The various kinds of money are generally categorized into M1, M2 etc. Mi comes with all money in circulation and the money in the checking accounts. M2 contains M1 and the cash held in the market funds, saving account and temporary repurchasing agreements.
Most Favored Nation- What is most favored nation?
It is the preferential treatment that the members of World trade organization afford.
Moving Average- What is moving average?
It is the method which is used with time sequence data to level the temporary fluctuations and highlight the permanent cycles and trends.
Moving Average Convergence- What is moving average convergence?
It is the technical analysis pointer that indicates the dissimilarity between the slow and fast exponential average of the closing costs.
Mutual Fund- What is mutual fund?
It is the equal to the unit trust of US.
Naked Put- what is naked put?
It is the act of making a note of put but not in a simultaneous manner. This produces important shortcoming exposure.
Narrow Market- What is narrow market?
It is the market which is characterized by the light or thin dealing.
What is negative carry pair?
It is the inverse of the traditional trading plan, in which one is a low yielding finance and the other is high yielding money.
What is negative divergence?
It takes place when a rise in cost takes place without giving rise to new high in the related cost, index, average and other types of technical pointers.
Net Asset Value- What is net asset value?
It is present in the account of Forex trading which is equal to the deposit balance, unrealized and realized gain, loss and interest withdrawals.
Netting- What is netting?
It is the process of settling a deal in which the difference is only measured.
Net Position- What is net position?
It is the currency purchased or sold by the opposing exchanges.
Net Worth- What is net worth?
It is the dissimilarity between the liabilities and assets. As far as public companies are concerned, it is considered as equity of the shareholder.
What is new home sale?
It is defined as an economic pointer that calculates the yearly number of residential buildings which were auctioned in the earlier month.
News Trading- What is news trading?
It is the approach to the trading that anticipates and earns profits from the announcement of news.
Nickel- What is nickel?
It is a US expression used for indicating five basic points.
What is NIKKEI?
It is the index of nearly 225 popular stocks that are traded on the stock exchange of Tokyo.
Noise- What is noise?
It is the activity of the market that do not match with the real perceived sentiment of the market; perhaps it creates a contradictory image.
Non-Client Order- What is non client order?
It is the order that a participant firm submits on behalf of one linked with the other participant organization.
Nonfarm Payrolls- What is nonfarm payrolls?
It is the economic pointer that calculates the change in number of employed individuals in the preceding month of the non framing business.
Nostro Account- what is nostro account?
It is the foreign currency existing account which is maintained with other banks. This account is used for receiving and paying currency liabilities and assets denominated in money of the nation in which a bank is considered as an occupant.
What is Not basis order?
It is the kind of order in which the cost may deal through or can be better than the desired stage of the client, but if the basis order is not performed in a proper manner, principal should not be held responsible for it.
Note- What is note?
It is a monetary instrument that promises to make the payment rather than giving an order to make the payment.
Notional Amount- What is notional amount?
It is the dimension of a copied contract.
Odd Lot- What is odd lot?
It is the non standard transaction size in the Fore trading. Partial Lot another name of Odd Lot.
What is old lady?
It is a slang expression used for the banks in England.
What is Off balance sheet?
It is related with financing or the capital raising works that do not appear in the balance sheet of a company like for example the derivative agreements and the investments regarding some kind of partnership.
Offer- What is offer?
It is the rate or cost at which a person wishes to sell certain products and services.
Official Settlements Account- What is official settlement account?
It is the category of balance of payment that adds the movement of US dollar in the overseas official holdings with the reserves of US.
What is Offsetting Transaction?
It is defined as an act of making an entry into a stage which is diametrically opposed to the accessible position.
Offshore Bank- What is offshore bank?
It is the bank which is located outside the nation of residence of depositor, generally in a low jurisdiction that offers legal and financial benefits.
Omnibus Account- What is omnibus account?
It is the total count handled by a dealer or merchant, containing different individual accounts that are together rolled.
What is One Cancels Another Order?
It is the kind of order where two different orders are submitted in a simultaneous manner. The implementation of one results in the cancellation of another.
Open Interest- what is open interest?
It signifies the number of unoriginal contracts like the options or futures that are active on certain security.
What is Open market operation?
It describes the process of implementing the monetary policy which is controlled by the Central bank through the money supply by purchasing and selling the securities of the government and other important monetary instruments.
Open Order- What is open order?
It is a valid order which is not canceled or executed, mainly because the cost did not reach the level that the consumer stipulates.
Open Position- What is open position?
It is the condition of short or long currency like fluctuations of cost when the stock was listed initially.
Opening Purchase- What is opening purchase?
It is the exchange in which a seller of the option plays the role of a writer.
Option- What is option?
It is his right, but not duty to purchase or sell the investment at a fixed point in future at a cost fixed today.
Option Class- What is option class?
It is generally differentiated into puts and calls for a fixed asset.
Option Series- What is option series?
It is the option of similar class with the similar exercise cost and expiry date.
Order -What is order?
It is the instruction given by the consumer to a dealer or buyer to purchase or sell the currency or securities. Unless a specific time limit is linked with the order, it remains valid till it gets cancelled or executed.
Oscillator- What is oscillator?
It is the technical analysis pointer that differs with time within the band. It is generally used for discovering temporary oversold or overbought situations.
What is out of money?
When a choice does not have any type of intrinsic value as the exercise cost is above or under the existing market cost of the security.
Outright Deal- What is outright deal?
It is the forward agreement which is not a part of swap.
Outright Forward- What is outright forward?
It is the money exchange transaction made with the intention of settling later on.
Overbought- What is overbought?
It explains a market in which the costs are thought to have increased than is acceptable by the technical or fundamental analysis.
Oversold- What is oversold?
It explains an asset or the market in which the costs are supposed to have decreased than is accepted by the fundamental analysis.
Overheating- What is overheating?
It takes place when the productive capacity of an economy is not able to maintain a pace with the increasing collective demand. It is characterized by an over trend rate of monetary growth and inflation.
Overnight- What is overnight?
It is defined as the position which is not closed at the end of a working day.
What is overnight limit?
It is defined as the total short and long positions that a trader carries out in a trading day.
What is over counter market?
It is explained as the trading of bonds, commodities, derivatives and stocks in a direct manner among two different parties. This is different from the exchange trading.
Owner- What is owner?
An owner is also known as account holder. The name of the account holder is present in the paperwork of the account.
Package Deal- What is package deal?
It is defined as a situation where several exchange or deposit orders are filled in a simultaneous manner.
Par- What is Par?
It is the official value of money or another asset.
Par Spread- Par Spread- What is par spread?
It is a situation where ask and bid price for the forward charge spread are similar.
Parity- What is parity?
It is the condition where the value of an option in a market is similar as the intrinsic value.
Parities- What is parties?
It is the price of currency in relation to another.
Partial Lot- What is partial lot?
This is defined as the non-standard Forex exchange size. It is also called as the Odd Lot.
What is Peg?
It is a kind of exchange rate command in which the worth of a single currency is fixed with another currency or group of finances.
Permitted Currency- What is permitted currency?
It is the money that is totally convertible and therefore is liquid.
Pip- What is Pip?
It is the general cost movement in the Forex trading. It is equal to about 0.0001.
What is figure chart?
It is a kind of chart that shows cost, without considering time.
Political Risk- What is Political Risk?
It is the complications that the investors and businesses may face because of the alterations in the government policy or due to the immediate expropriation.
Position- What is position?
It is measured as the exposure of a currency. It can be square or flat, short or long.
Premium- What is premium?
It is the amount through which the forward rate crosses a spot charge or the cost a put or the call purchaser must have to pay to the vendor for an option agreement.
Price Transparency- What is price transparency?
It is the ability of market participants for trading at the similar cost.
Prime Rate- What is prime rate?
It is the standard rate from which the lending charges by the banks are measured in US.
Principal- What is principal?
It is the dealer who purchases or sells currency or stock for her or his bank account.
What is Producer Price Index?
It is the economic pointer that calculates the average alterations in costs attained by the domestic creators for their production.
Profit Taking- What is profit taking?
It is the loosening of a certain position to understand profits, depending on the supposition that an asset will fall in its cost.
Purchasing Power Parity-What is Purchasing Power Parity?
It is the replica of the exchange rate determination depending on the rule of a single cost, stating that the cost of a product in a country should be the same in other country.
What is Put Option?
It is an option that offers an owner a right, but it is not his or her duty to sell the specified amount of currency, financial instrument or commodity.
Put-call Parity- What is put call parity?
It explains about an association between the cost of a put and call option, both having an identical strike cost and expiry date. When both the choices are at money forward, the cost of call option is similar with the value of put choice.
What is Put ratio?
It is the technical analysis pointer measured by dividing the put alternatives by call choices for a certain asset, used for measuring the sentiment of the market.
What is Parabolic and the Stop Reverse?
It is technical analysis equipment made to detect the trailing stop loss depending on the idea that the costs tend to stay in a curve in a powerful trend.
What is Profit & Loss?
It is the real “imagined” profit or loss one earns from trading. It also includes “unrealized” profits and losses from the open positions. (12,494)
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Quantitative Analysis- What is Quantitative Analysis?
It is the application and a department in mathematics and the models of statistics used during trading and investments.
Quantitative Easing- What is Quantitative Easing?
It explains a tremendous form of fiscal policy used for stimulating an economy where the rate of interest is at or is close to the zero level. As far as practical terms is concerned, central Bank buys the financial assets from the financial organizations by using the money that has been created by it.
Quote- What is Quote?
It is provision of ask or bid spread for a financial pair.
Quote Currency- What is Quote Currency?
It is the currency listed as number second in the pairing of currency.
Rainbow option- What is rainbow option?
It is the option that comes with an added underlying asset, in which the assets are not interpreted as a composite asset. It is also called as the basket options.
Rally- What is rally?
It is the sustained increase in the asset costs.
Range- What is range?
It is the dissimilarity between the maximum and the lowest rate of exchange for a exchange pair during a time period.
Rate- What is rate?
It is the short for of exchange rate or rate of interest.
Rate Differential- What is Rate Differential?
It is the difference among the standard rates of interest of two different countries, generally used as a foundation for predicting the exchange rate.
Rate of Return- What is Rate of Return?
It is the percentage of gain or loss on the investment related to the total invested money.
Rating agency- What is Rating agency?
These are the independent agencies like the standard and Poor’s by Moody that assesses the quality of the credit and the likelihood of the default of an issuer and assigns a code to that specific issuer or issue.
Ratio Spread- What is ratio spread?
It is defined as holding an unbalanced amount of short and long option position.
Reaction-What is reaction?
It is the fall in costs followed by an appreciation period.
What is Realized Profit and Loss?
It is the profit or loss that one earns by closing the position.
Real-time- What is real time?
It means without any type of delay. Most of the quote systems provide real time costs, which are regarded as the costs at which purchasing and selling takes place tight at the moment in market.
Recession- What is recession?
It is defined as the slowing the economic activity within a certain time period ort it is also defined as the business cycle. It is explained by National Bureau of Research as the successive quarters of the GDP.
Rectangle- What is rectangle?
It is the technical analysis style which is characterized by the powerful support and various resistance line, showing a range of trading.
What is Reciprocal Currency?
It is the currency that you will find on the right part of the equation in a currency. It is similar to the Quoting currency.
What is regulated market?
It is the exchange or market monitored by the government organization with the aim of safeguarding the dealers.
What is Relative Strength Index?
It is the technical analysis pointer that is used for calculating the speed and magnitude of the added cost movement by comparing the downward and upward movements.
Repurchase Agreement- what is Repurchase Agreement?
It is the temporary money market tool, used mainly to increase the temporary assets.
What is Reserve Bank Of India?
It is the central bank in Australia, whose actions are related to Australian dollar directly.
Reversal- What is reversal?
It is defined as a possible shift in the existing trend.
Reserve Currency- What is reserve currency?
It is a currency which is perceived as reliable, like for example, the Central banks are planning to grasp it in large quantities.
Reserves- What is Reserves?
It is the overseas exchange and gold, reserve positions of IMF organized by the Central Banks and the different monetary authorities which is drawn from any other source to organize fiscal policy and repay compulsions.
Resistance- What is Resistance?
It is a level of price which if reached by people helps in activating several selling.
Retail Prices Index- What is Retail Price Index?
It calculates the rise in cost depending on the cost of a collection of family products.
Retail Sales- What is retail sale?
It is the economic pointer which is regarded as an alternative for the consumption. It is regarded as a coincident pointer, in which it shows the existing condition of the financial system.
What is revaluation?
The regular calculation of the unrealized open positions depending on the dissimilarity between the earlier closing cost and the existing opening cost. It is also regarded as a change in the exchange rate of a country for the currency as an effect of the intervention of Central Bank.
Risk- What is Risk?
It is the possibility for the adverse activity that causes monetary loss in which the real return deviates from the predictable return. The dangers linked with the Forex trading are liquidity danger, credit risk and counterparty risk.
Risk Capital- What is Risk Capital?
It is the amount of finance that can be lost without impacting the financial position of a person.
Risk Management- What is risk management?
It is the utilization of financial instrument used for managing exposure to danger, mainly credit danger and market danger.
What is rollover?
It is the repeated closing of the open position for the value date of today and the opening a similar position for the other day’s price date at a cost that reflects the rate of interest between the two different currencies.
What is rollover credit?
It is the amount which is added to the account of the trader when the extended currency in the currency pair consists of high yielding interest compared to the small currency.
Rollover Debit- What is rollover debit?
It is the amount which is subtracted from the account of a trader when the extended currency in the pair has a low rate of interest compared to the short one. It is contradictory to the Rollover credit.
What is rollover rate?
It is the difference in rate of interest that is applied to the portfolio of a trader that results in rollover money or the debit.
What is round lot?
It is a general lot of nearly 100,000 money units.
Round Trip- What is round tip?
It is the purchasing and selling of similar amount of money.
What is rounding top and the bottom?
It is the rounded top line that displays bearishness, while the round bottom line shows bulginess
What is running the position?
It is a slang expression used for the opening position.
What is same day transaction?
It is the position which is closed and opened on the day trading starts.
Sell Stop Order- What is Sell Stop Order?
It is the kind of limit order, where the limit cost is placed under the existing market cost. Once it is triggered, this order is performed at the market cost.
Selling Rate- What is selling rate?
It is defined as offer or ask rate.
Selling Short- What is selling short?
It is defined as selling the currency pair like the one which is short is known as base currency and the other one which is long is known as quote currency with an aim of gaining profit from depreciation.
Settlement- What is settlement?
It is the exchange of a currency with another.
Settlement Date- What is settlement date?
It is a business day meant for delivering the currencies that are purchased and sold under the contract of Forex trading.
Settlement Risk- What is settlement risk?
It is the possibility for the loss that takes place from the counterparty which is unable to settle.
Short Position- What is short position?
It is defined as the open position that has the aim to capture profits from the depreciation of currency.
Short Squeeze- What is short squeeze?
It is the fast increase in the cost of money or stock that takes place while a shortage of supply and a surplus of demand exists. These are also known as short sellers.
Shout Option- What is shout option?
It is a kind of choice that gives permission to the owner of two different exercise dates in the existence of a choice that can be locked by them in the existing cost and if it is able to offer them a good deal compared to the paying off at the maturity, they can utilize the underlying cost on the date other than the cost at maturity for calculating the final paying off.
Sidelined- What is sidelined?
It is a condition showing extraordinary interest in the currency pair, like the important pairs of currency is traded as an effect.
Simple Moving Average- What is Simple moving average?
It is the technical analysis pointer which is commonly utilized with the time sequence data to smooth the temporary fluctuations and then highlight the permanent cycles or trends that offers similar weight to the different data points.
Slippage- What is slippage?
It is the phenomenon where the real fill cost differs from the predictable cost price, as an effect of an exciting moving market or the error of the broker.
Society for Interbank Telecommunications- What is Society for Interbank Telecommunications?
It is the worldwide electronic network for the settlement of the Forex trade, popularly known for the code that can recognize the financial organizations for the reason of settlement and transfer.
Soft Market- What is soft market?
It explains a market which is characterized by large number of sellers compared to the purchasers.
Sovereign Risk- What is sovereign Risk?
It is the risk that the government will default on the obligations or will inflict regulations limiting the ability of the issuers in a country to meet the obligations like restrictions on the overseas currency.
Speculation- What is Speculation?
It is the financial actions that do not promise about any safety of the starting investment with a return of main amount.
Spike- What is spike?
It is larger than the expected cost movement, emerged by the news announcement or the error of the broker.
Spot Market- What is spot market?
It is the act of purchasing and selling the Forex trade depending on the latest costs, with settlement that takes place after two days.
Spot/Next Roll- What is spot or next roll?
It is described as the sudden swap from the mark date to the other business day. The other term used for next roll is Rollover.
Spread- What is spread?
It is the dissimilarity between the bidding and asks cost for an offered currency pair. It is also popularly known as Bid Asking Spread.
Square- What is square?
It is the condition where all the positions in the books of the dealers have been shut down.
Squeeze- What is squeeze?
It is the central bank that makes an attempt to lessen the supply of money to raise the cost of finance.
What is stable market?
It is the market or the finance pair that has the ability to accommodate huge volumes without giving rise to the large fluctuations of cost.
Stagflation- What is stagflation?
It is the period of recession or the low growth which is linked with high rise in cost.
Sterilization- What is sterilization?
It is the procedure in which the central banks offset the intervention in the trading market by several activities in household money market. For instance, if the central bank purchases overseas exchange, it will sell the debt of the government to contract the fiscal base by a similar amount.
Sterling- What is sterling?
It is the official term used for describing British Pound.
Stochastic Oscillators- What is stochastic oscillator?
It is the technical analysis equipment designed for comparing the closing cost of the currency to its cost range over a certain time period.
Stockbroker- What is stockbroker?
It is the agent that purchases and sells the shares on behalf of one and earns a commission on the cost of exchange. It is popularly called as the broker.
Stocky- what is stocky?
It is a slang expression used for Krona of Sweden.
Stop Order- what is stop order?
It is described as the order to purchase when the cost increases above or decreases below a particular stop cost. When purchasing this order it is utilised for making an asset but only in such a condition when an upward style has been invented. As far as selling is concerned, it is used as defense from the unexpected fall in the sharing cost or to fasten the profits that have been made already.
Stop Prices- What is stop price?
It is the cost at which the stop order begins. As far as buying is concerned, the stop cost acts as the minimum cost that one has to pay if the investment is made. As far as sales are concerned, the stop cost is regarded as the highest cost that one receives after selling the holding.
Stop Loss Strategy- What is stop loss strategy?
It is the trading plan that involves setting different, half loss limit order at various cost levels for avoiding incurring the future losses.
Straddle- What is straddle?
It is the option plan that permits the owner to gain profit depending on the move of the fundamental security cost, regardless of the way of cost movement.
Strangle- What is Strangle?
It is the options plan that permits the owner to earn profit depending on the move of the fundamental security, with less exposure to a direction of cost movement.
Strip- What is strip?
It is the options plan that contains one call and two puts.
Structural Unemployment- What is structural unemployment?
It is the unemployment that results by the systematic flaws in the economy’s structure, which cannot be fixed with the help of monetary and fiscal policy.
Strike Price- What is strike price?
It is the cost at which an original benefit can be purchased or sold as particular in an alternative contract. Exercise price is another name of strike price.
Sub-account- What is sub account?
It is the segregation of account in small amounts for making the process of executing and managing different hedging and trading strategies.
Support- What is support?
It is the level or a floor that stops the downward progress of the currency as an effect of strong purchasing pressure at that particular level.
Swap- What is swap?
It is the kind of offshoot in which the two different parties agree in exchanging a single stream of money flows against one another.
Swaption- What is swaption?
It is the option for entering a contract.
What is swing option?
It is the kind of notion that offers the buyer the right to use any call or place any one of the number of a particular exercise date. Several punishments are imposed on a purchaser if the total volume bought crosses or falls under a specific lower and upper limit.
Swissy- What is swissy?
It is a slang expression used for Franc.
Symmetrical Triangle- What is symmetrical triangle?
It is the technical analysis style that contains of two lower lows and highs. By extending the lines with the help of such points, a regular triangle is created. It is associated with the markets that do not have any direction as the reduction of the range of market shows that neither the bears nor the bulls are in proper control. If this style forms an uptrend, it is regarded as a continuation style if a market breaks to an upside and the reversal pattern, provided the markets breaks downwards. In the same manner, if the pattern creates in the downtrend it is regarded as a continuation style if the market splits towards down and the reversal pattern if a market breaks to an upper portion.
Systematic Risk- what is systematic risk?
It is the risk concerning the derivatives that allow the exchange of risk across the earlier unrelated markets, therefore making it probable that the huge shock will be exchanged to others.
T+- What is T+?
It is the settlement tenure that is permitted after the trading of the security. T+5 means that the settlement will take place in five days after the exchange day.
Take Profits- What is take profits?
It is the unwinding of the position to understand gains, depending on the supposition that the cost of benefit will fall soon.
Take-Profit Order- what is Take profit order?
It is the order that specifies the precise rate or total pips from the existing cost point at which the existing position has to be closed and profits will be closed.
Take the Offer- What is Take the offer?
It is the verbal command that believes an offer for selling a money pair to the dealer.
Technical Analysis- What is technical analysis?
It is the broad approach to predict the direction of the future costs through the examination of past data of the market, mainly volume and cost. It can employ rules of trading and models depending on the cost and transformations of volume.
Technical Correction- What is technical correction?
It is the adjustment of cost which is expected as an effect of the technical factors, rather that the sentiments of the market or the basic developments.
Technical Indicators- What is technical indicators?
It is the temporary trends that the technical analysts utilize to inform the predictions for the future cost movements. It is also called technicalities and technical.
Technical Trader- What is technical trader?
It is one whose approach towards trading depends on technological analysis.
What is TED Spread?
It is the dissimilarity between the rate of interest on the Interbank loans and temporary government debt on U.S. Ted Spread is measured as the dissimilarity between the T bill rate of interest of three months and LIBOR of three months.
Terms of Trade- What is terms of trade?
It is the ratio between the imports and exports. A development in the trading terms of nation is regarded beneficial for the country as it does not have to pay a large amount for the items it imports.
Theta- What is theta?
It is the change of rate of a choice with time. Theta reflects the fact that a choice value falls with time.
Thin Market- What is thin market?
It is the term used for constricted market.
Tick- What is tick?
It is the small possible change in cost, either down or up. It is called as Pip.
What is ticker?
It is the streaming display of the existing rates for a money pair.
Tightening- What is tightening?
It is the Central Bank that raises rate of interest or conducts fiscal policy for lessening rise in curb and demand.
Tier One- What is tier one?
It is the maximum grading that the bank earns for the financial strength, as per the International Bank Settlement.
Tokyo Inter-bank Rate- What is Tokyo Inter-banks Offered Rates?
It is the regular reference rate depending on the rate on interest at which the banks provide unsecured money to another banks in the Interbank market of Japan.
Tomorrow Next- What is Tomorrow Next?
It is the procedure of not taking the delivery of the money by closing and reopening the position with the recent trading date so that the date of settlement is forwarded to next trading date.
Total Return- What is Total Return?
It is the yearly return on the investment that includes appreciation and interest of the capital.
Total Return Swap- What is Total Return Swap?
It offers the purchaser a financial performance of an obligation of reference, like the coupon or an interest from the obligation of reference with the capital profits in return of the predetermined funding price. The purchaser will need to make payment for the capital losses.
Trade Dates- What is trade date?
It is the date on which the position reopens.
Trade Price Response- What id trade price response?
It is the belief that money will start reacting after reaching a certain limit and the dealers should respond according to that.
Tradeable Amount- What is Tradable amount?
It is the smallest size of transaction allowed by a dealer that varies from one unit to nearly 10000 units.
Trading Margins Excess- What is Trading margin excess?
It is extra money under the margin needs for the current positions used for entering a new position or raise current positions.
Trading Model- What is trading Model?
It is a sophisticated program that offers buying or selling recommendations depending on the calculation of chronological data.
Trading Platform- what is Trading Platform?
It is the software application utilized for online Forex trading.
Trailing Stops Orders- What is Trailing Stops Order?
It is the order which makes an entry with the stop parameter that makes a trailing or moving activation cost. This parameter makes an entry as a change in the percentage or the real specific quantity of increase or decrease in the security cost.
Tranche- What is Tranche?
It is one of the numbers of related securities provided as a part of the similar exchange.
Transaction- What is Transaction?
It is the purchase or selling of the financial pair.
Transaction Costs- What is transaction cost?
It is the charge associated with an exchange, which are assessed by the dealers in a direct manner or in a indirect way with the help of Ask spread.
Transaction Dates- What is transaction date?
It is the date in which a specific position is closed or opened.
Treasury Securities- What is Treasury Securities?
It is the debt obligation of the government of US that comes in the bill form used for short time period and bonds for long term. It is used as a danger free standard for the costing of US dollar.
Trend- What is Trend?
It is the latest direction of market, either down, up or through the side.
Trend Lines- What is Trend Lines?
It is the line, arc and different types of visual cues that are plotted on the line chart used for identifying and demarcating cost trends.
Triangular Arbitrage- What is triangular arbitrage?
It is defined as enjoying the benefits of imbalance state between three overseas trade markets.
What is Triple Top?
It is the technical style in which the currency reaches a cost level three times earlier, but is not able to break the that particular level.
Turnover- What is turnover?
It is defined as the volume of exchange traded over a certain time period.
Two-Way Price- What is Two-Way-Price?
It is the condition when both the ask prices and lid are quoted in an exchange.
Two-Tier Market- What is Two Tier Market?
It is the dual replacing charge system where there is a government, official and market charge.
What is unconvertible currency?
It is defined as any money that cannot be exchanged freely for another due to the overseas regulations of exchange.
What is uncovered position?
It is the other term used for the Open Position.
What is an underlying asset?
It is as asset or currency according to which the covered warranty, contract of future or alternative depends and derives its cost.
Undervalued- What is undervalued?
It is a situation when the currency trades under the buying power parity or another assessment metric.
What is unemployment rate?
It is an economic pointer explained as the proportion of people who are employed in the labor power.
Unit- What is Unit?
It is the most general denomination of a currency. It is a unit of USD which is similar to a Dollar.
What is Unit Labor Costs?
It is calculated by dividing the labor costs of the employer by the actual value production. There are different economic pointers that seek measuring changes in labor prices.
What is University of Michigan Sentiment Index?
It is the index of the consumer confidence published every month by the Michigan University.
Unrealized Profit & amp – What is Unrealized Profit &?
It is the profit and losses that take place hypothetically, in the places that have not been closed.
Uptick- what is Uptick?
It explains the situation where a new cost quote is more than the earlier quote.
What is Uptick Rule?
It is the rule that speaks about specific kinds of trades that has to be executed at the cost higher than the earlier deal.
What is US Dollar Index?
It is the measure of the cost of US dollar, calculated according to the money of the trading partner.
Us Prime Rate- What is US Prime Rate?
It is the rate of interest at which the US banks lends the creditworthy dealers.
US Treasury- What is US Treasury?
It is the department within the government of US which is meant for printing finance and issuing the obligations of the government.
V Formation- what is V Formation?
It is the other term used for the Spike.
Valuation- What is valuation?
It is the procedure of guessing the cost of the asset or the money.
What is value at risk?
It is the measure of high possible changes in the cost of portfolio of the financial tools with an offered possibility over a certain time period.
Vanilla- What is Vanilla?
It is a descriptive term that means financial instrument with several ordinary features and no unusual characteristics. It is contradictory to the Exotic Option.
What is value date?
It is the settlement date for the contract of currency, generally two business days following the trading date.
Value Today- What is value date?
It is the similar day settlement for the currency exchange. It is also called Cash Transaction.
Variance- What is Variance?
It is the statistical measurement to calculate how a variable disperses around mean.
Variation Margin- What is Variation Margin?
It is the money needed to bring the ration of margin again to the needed level, calculated regularly.
Vega- what is Vega?
It is the rate of alteration of a choice with respect to the volatility of fundamental asset.
What is velocity of Money?
It is the average frequency in which money is spends in a certain time period. It is associated with the economic activity linked with the supply of money.
VIX- What is VIX?
It is the ticker symbol for Chicago Board Option Exchanges Volatility Index, a famous measure of implied volatility. A high cost communicates to a volatile market and thus costly alternatives can be utilized to defray the danger from volatility.
Volatility- What is volatility?
It is the calculation of the changes in currency or price rate. It is generally used as the proxy for danger.
Volatility Smile/Skew- What is volatility smile or skew?
It is the irregular distribution of indirect volatility. It has maximum implied volatilities than entitles. This is a fact described as demand and supply.
Volume- What is volume?
It is the total number of contracts or shares that are traded in the security or a whole market during a certain time period.
Vostro Account- What is Vostro Account?
It is the account of the overseas bank held the domestic bank, vital in the country where the overseas bank lacks in the presence of branch.
Wage Price Index- What is Wage Price Index?
It is the economic pointer that helps in measuring the changes in an average cost for labor.
Warrant- What is warrant?
It is a right but not an obligation, to purchase shares in company that issues warranty on the fixed date. It is just like the options, but is generally not tradable.
Weekly charts- What is weekly chart?
It is a kind of chart for which every candlestick or the bar encapsulates the data rate showing one week.
Whipsaw- What is Whipsaw?
It is the sharp adverse cost movement or the reversals of the market, taking a place after the execution.
Whisper Number- What is Whisper Number?
It is the predictions of the analysts made for earnings and economic pointers, which is known for the public in spite of not released formally.
Wholesale Money- What is wholesale money?
It is the money exchanged in huge amounts from the organizations rather than from the small shareholders.
Wholesale Price Index- What is Wholesale Price Index?
It is the cost of a representative collection of wholesale products, generally used in an interchangeable manner with the price Index.
What is Wire Transfer?
It is the electronic transfer of money from a bank to other bank.
Withholding Tax- What is withholding tax?
It is the tax levied by the sourcing country on the income paid, generally on the dividends send to the country of the organization operating in the overseas country.
Writer- what is Writer?
It is defined as an issuer of option, derivative and warrant.
Working day- What is working day?
It is the day on which most of the banks in the main financial center of the currency are opened for business. In the Forex exchange, a working day takes place if the banks in both the countries of utilization are opened.
World Bank- What is World Bank?
It is the International Financial organization that offers leveraged loans to the poorer countries for the capital programs with the aim of lessening deficiency.
What is World Trade Organization?
It is the international firm made by the founders to manage and liberalize the international trade.
Wedge- What is Wedge?
It is a type of chart that displays a narrow range of cost over time. In the ascending wedge, the cost becomes less, whereas in the descending wedge, the cost decreases which in turn makes the increment larger.
Yard- What is Yard?
It is a slang expression meant for a billion.
What is yield?
It is explained as the return of investment, generally expressed in terms of percentage.
Yield Curve- What is Yield curve?
It is a graph showing the rate of interest of an issuer for a wide range of various maturities.
Z-Certificate- What is Z-Certificate?
It is a certificate issued by Bank of England rather than the stock certificates, for enhancing the temporary exchanges.
Z-Score- What is Z-score?
It is a statistical method for making the data points around mean normal.
ZAR- What is ZAR?
It is the money symbol for Rand of South Africa.
What is Zero Bound?
It is the interest rate that is at zero percent or close to it.
Zero Coupon- What is Zero Coupon?
It is a security that does not pay any specific interest and sold under the face price. The shareholder attains the return as capital profits.
Zero Coupon Bond- What is Zero Coupon Bond?
It is a bond that the discount issues for which the investors will not get coupon payments for bond. The interest grows over a bond like the bond is traded in at the maturity level.
