1 | ACCRUAL | The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (interest arbitrage) deals, over the period of each deal. |
2 | ADJUSTMENT | Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate. |
3 | AGGRESSIVE | Traders and/or price action are acting with conviction. |
4 | ANALYST | A financial professional who has expertise in evaluating investments and puts together buy, sell and hold recommendations for clients. |
5 | APPRECIATION | A product is said to 'appreciate' when it strengthens in price in response to market demand. |
6 | ARBITRAGE | The simultaneous purchase or sale of a financial product in order to take advantage of small price differentials between markets. |
7 | ASIAN CENTRAL BANKS | Refers to the central banks or monetary authorities of Asian countries. These institutions have been increasingly active in major currencies as they manage growing pools of foreign currency reserves arising from trade surpluses. Their market interest can |
8 | ASIAN SESSION | 23:00 – 08:00 GMT. |
9 | ASK (OFFER) PRICE | The price at which the market is prepared to sell a product. Prices are quoted two-way as Bid/Ask. The Ask price is also known as the Offer. In FX trading, the Ask represents the price at which a trader can buy the base currency, shown to the left in a c |
10 | AT BEST | An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time. |
11 | AT OR BETTER | An instruction given to a dealer to buy or sell at a specific price or better. |
12 | AUS 200 | A term for the Australian Securities Exchange (ASX 200), which is an index of the top 200 companies (by market capitalization) listed on the Australian stock exchange. |
13 | AUSSIE | Refers to the AUD/USD (Australian Dollar/U.S. Dollar) pair. Also "Oz" or "Ozzie". |
14 | BALANCE OF TRADE | The value of a country's exports minus its imports. |
15 | BAR CHART | A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar; the opening price, which is marked with a horizontal line to the left of the bar; and the closing price, which is marked with a horizontal |
16 | BARRIER LEVEL | A certain price of great importance included in the structure of a Barrier Option. If a Barrier Level price is reached, the terms of a specific Barrier Option call for a series of events to occur. |
17 | BARRIER OPTION | Any number of different option structures (such as knock-in, knock-out, no touch, double-no-touch-DNT) that attaches great importance to a specific price trading. In a no-touch barrier, a large defined payout is awarded to the buyer of the option by the s |
18 | BASE CURRENCY | The first currency in a currency pair. It shows how much the base currency is worth as measured against the second currency. For example, if the USD/CHF (U.S. Dollar/Swiss Franc) rate equals 1.6215, then one USD is worth CHF 1.6215. In the forex market, t |
19 | BASE RATE | The lending rate of the central bank of a given country. |
20 | BASING | A chart pattern used in technical analysis that shows when demand and supply of a product are almost equal. It results in a narrow trading range and the merging of support and resistance levels. |
21 | BASIS POINT | A unit of measurement used to describe the minimum change in the price of a product. |
22 | BEARISH/BEAR MARKET | Negative for price direction; favoring a declining market. For example, "We are bearish EUR/USD" means that we think the euro will weaken against the dollar. |
23 | BEARS | Traders who expect prices to decline and may be holding short positions. |
24 | BID PRICE | The price at which the market is prepared to buy a product. Prices are quoted two-way as Bid/Ask. In FX trading, the Bid represents the price at which a trader can sell the base currency, shown to the left in a currency pair. For example, in the quote USD |
25 | BID/ASK SPREAD | The difference between the bid and the ask (offer) price. |
26 | BIG FIGURE | Refers to the first three digits of a currency quote, such as 117 USD/JPY or 1.26 in EUR/USD. If the price moves by 1.5 big figures, it has moved 150 pips. |
27 | BIS | The Bank for International Settlements located in Basel, Switzerland, is the central bank for central banks. The BIS frequently acts as the market intermediary between national central banks and the market. The BIS has become increasingly active as centra |
28 | BLACK BOX | The term used for systematic, model-based or technical traders. |
29 | BLOW OFF | The upside equivalent of capitulation. When shorts throw in the towel and cover any remaining short positions. |
30 | BOC | Bank of Canada, the central bank of Canada. |
31 | BOE | Bank of England, the central bank of the UK. |
32 | BOJ | Bank of Japan, the central bank of Japan. |
33 | BOLLINGER BANDS | A tool used by technical analysts. A band plotted two standard deviations on either side of a simple moving average, which often indicates support and resistance levels. |
34 | BOND | A name for debt which is issued for a specified period of time. |
35 | BOOK | In a professional trading environment, a book is the summary of a trader's or desk's total positions. |
36 | BRITISH RETAIL CONSORTIUM (BRC) SHOP PRICE INDEX | A British measure of the rate of inflation at various surveyed retailers. This index only looks at price changes in goods purchased in retail outlets. |
37 | BROKER | An individual or firm that acts as an intermediary, bringing buyers and sellers together for a fee or commission. In contrast, a dealer commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a sub |
38 | BUCK | Market slang for one million units of a dollar-based currency pair, or for the US dollar in general. |
39 | BULLISH/BULL MARKET | Favoring a strengthening market and rising prices. For example, "We are bullish EUR/USD” means that we think the euro will strengthen against the dollar. |
40 | BULLS | Traders who expect prices to rise and who may be holding long positions. |
41 | BUNDESBANK | Germany's central bank. |
42 | BUY | Taking a long position on a product. |
43 | BUY DIPS | Looking to buy 20-30-pip/point pullbacks in the course of an intra-day trend. |
44 | CABLE | The GBP/USD (Great British Pound/U.S. Dollar) pair. Cable earned its nickname because the rate was originally transmitted to the US via a transatlantic cable beginning in the mid 1800s when the GBP was the currency of international trade. |
45 | CAD | The Canadian dollar, also known as Loonie or Funds. |
46 | CALL OPTION | A currency trade which exploits the interest rate difference between two countries. By selling a currency with a low rate of interest and buying a currency with a high rate of interest, the trader will receive the interest difference between the two count |
47 | CANADIAN IVEY PURCHASING MANAGERS (CIPM) INDEX | A monthly gauge of Canadian business sentiment issued by the Richard Ivey Business School. |
48 | CANDLESTICK CHART | A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, th |
49 | CAPITULATION | A point at the end of an extreme trend when traders who are holding losing positions exit those positions. This usually signals that the expected reversal is just around the corner. |
50 | CARRY TRADE | A trading strategy that captures the difference in the interest rates earned from being long a currency that pays a relatively high interest rate and short another currency that pays a lower interest rate. For example: NZD/JPY (New Zealand Dollar/Japanese |