Forex Dictionary

A B C D E F G H I K L M N O P Q R S T U V W Y

Account

1. An arrangement by which an organization accepts a customer's financial assets and holds them on behalf of the customer at his or her discretion.

2. A statement summarizing the record of transactions in the form of credits, debits, accruals and adjustments that have occurred and have an affect on an asset, equity, liability or past, present or future revenue.

3. A relaying of happenings from one party to another.

Actualise

Financial instrument traded on the cash market

Adjustable peg

A system, where countries manage their exchange rates around par values. This allows countries to intervene in the foreign exchange markets to keep their exchange rates within a margin, ie. the peg.

Adjustment

Policy-based measures designed to solve balance-of-payment problems. Curing balance-of-payment problems requires decreasing absorption relative to production, ie usually cutting government spending and increasing taxation levels.

Agent

Representative acting in favor of the client.

Agent bank

A bank that has been authorized by an individual to act as his/her agent. An agent bank would typically provide services such as back-office operations, processing of credit applications, and verification services.

Aggregate Demand

The total demand for goods and services in an economy at a certain price level for a certain period of time. Submit via aggregate demand curve, which describes the relationship between prices and production, the company provides. Typically, there is an inverse relationship between aggregate demand.

Aggregate risk

Total exposition risk to a single bank client, including spot and forward contracts.

Aggregate supply

The total supply of goods and services produced within an economy at a given overall price level in a given time period. It is represented by the aggregate-supply curve, which describes the relationship between price levels and the quantity of output that firms are willing to provide. Normally, there is a positive relationship between aggregate supply and the price level. Rising prices are usually signals for businesses to expand production to meet a higher level of aggregate demand. Also known as "total output".

Agio

It is the difference in the currencies values. It is used to calculate and withdraw taxes, held in money transfer operation when cash the checks and from no liquid to liquids money.

All or None - AON

A condition used on a buy or sell order to instruct the broker to fill the order completely or not at all.

American Option

An option that can be exercised anytime during its life. The majority of exchange-traded options are American.

Appreciation

Strenghtening of a currency as a result of higher market demand or a action of the oficial authorities.

Arbitrage channel

Price channel where the arbitrage between cash and futures markets are not available.

Arbitrageur

Type of investor, which is tryeing to earn money from price diferences in the market, by simultaneous opposite contracts and making a non-risk profit. Arbitrageur for an example, is seeking price diferences between shares offered on one market, buys undervalued shares and sells the undervalued shares on other market, by this he makes a non-risk profit.

Around

Word used in the quotation of the forwards to charge premiums and respectively discounts.

Ask

The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.

Ask Price

1. Sale Price. Offer by an investor, trader or dealer for the sale of a financial instrument. The offer contains both the price and quantity of the instrument. 2. The price at which market maker is willing to sell a financial instrument. Market makers shows and Buy price or the price at which it is willing to buy.

Asset

1. A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.

2. A balance sheet item representing what a firm owns.

Asset allocation

Asset allocation is a term used to refer to how an investor distributes his investments among various classes of investment vehicles (e.g., stocks and bonds

At - The - Market

Kind of market order of a financial instrument on a current market price.

At best

Instruction – given to dealer to buy or to sell on determined price or better.

At the Money

Option is at the money if the strike price is equal on the current market price.

Authorised dealer

Authorized financial institution to carry out for deals calculated in foreign currency.