When a currency strengthens in price in response to market demand.

The lowest price that a dealer will sell to a buyer.

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

Bank Automated Clearing System. Payments will take up to 3 business days to clear into a designated account.

The interest rate that a bank charges for loans.

The interest rate set by the Bank of England for lending to other banks.

A person who expects prices to decline/a currency to depreciate.

The price at which a person is willing to buy currency at.

The difference between the buy (bid) and sell (offer) price of a currency.

A person who expects prices will rise /a currency to appreciate.

Buying and selling in the foreign exchange market always happens in the currency which is quoted first. "Buy Dollar/Yen" means buy the dollar/sell the Yen. Traders buy when they expect a currency’s value to rise and sell when they expect a currency to fall.

The term used for the Great British Pound/ US Dollar currency pair.

A national bank that provides financial and banking services for its country’s government and commericial banking system, as well as implementing the governments monetary policy and issuing currency.

Clearing House Automated Payment System. A faster way of making payments, which, assuming they are transferred in time will be received by the beneficiary the same business day.

Clearing House Interbank Payment System. A computerised system used for foreign exchange Dollar settlements.

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care.

A commitment to buy or sell a specified amount of foreign currency on a fixed date in the future.

The exchange rate between two currencies. E.g. Euro/Yen.

The State Tender of a Country.

The two currencies that make up a foreign exchange rate. E.g. USD/EUR.

The possible risk that arises when the exchange rates change.

A US term. A stock trader who holds positions for a very short time.

The primary method of recording the basic information relating to a transaction.

The decline in a value of a currency due to market forces.

The formal reduction in the value of a currency against other currencies.

A portion of a company’s profit paid to common and preferred shareholders.

A financial market of a developing country.

The bank created to look after the financial affairs of the countries that have joined the Euro.

Also known as a wire, or telegraphic transfer (t/t), this is the process of moving money from bank to bank electronically.

The Currency used in most of Europe.

A 1979 arrangement between several European countries which links their currencies in an attempt to stabilize the exchange rates

The rate at which one currency can be exchanged for another.

The potential risk that could be incurred from an adverse movement in exchange rates.

Money at risk due to foreign exchange movements.

Where a client has not traded in that currency or where an earlier deal is reversed thereby creating a neutral (flat) position.

An exchange rate between currencies that is set by the governments involved rather than allowed to fluctuate freely with market movements.

The value of a currency as decided by supply and demand.

The simultaneous buying of one currency and selling of another.

The international market in which one national currency can be exchanged for another

Industrial term. Same a Foreign Exchange.

The assessment of the value of a share on a company’s actual earnings, assets and dividends.

Foreign Exchange.

Market slang term for US paper currency (US Dollar).

Total value of a country’s output, income or expenditure produced within the country’s physical borders.

Gross domestic product plus 'factor income from abroad' - income earned from investment or work abroad.

Stable, convertible currency that is not likely to depreciate suddenly or ro fluctuate greatly in value.

Use of investments to manager commercial risk, or to minimise a potential loss to an existing position or known commitment.

A standardised format adopted by European Union member nations to facilitate cross-border money transfers within the European Union.

The foreign exchange rates at which international banks trade currencies and or lend money with eachother.

International Monetary Fund.

A dealer’s price which is not firm for dealing.

A general increase in price level in conjunction with a fall in the purchasing value of money.

The percentage of a sum of money charged for its use.

The potential for losses from changes in interest rates.

London Interbank Offered Rate.

If you only wish to exchange your funds at a specified rate, your account manager can monitor the market and buy the currency at the level agreed.

A market with many bid and asks offers. The market is characterised by high liquidity, low spreads, and low volatility.

A market position to purchase a currency that was not previously owned (e.g. long Dollars).

Margin is a cash deposit provided by clients as collateral to secure a trade and cover any losses (if any) that may result from movements in exchange rates.

A brokers demand that a client deposits enough money or securities to bring a margin account to the originally agreed margin percentage of a contract that has been affected by adverse movements in the exchange rate.

Date for settlement.

The date on which the foreign exchange is to be delivered or received, under a contracted agreement.

A dealer or firm authorised to create and maintain a market in foreign exchange by supplying prices and being prepared to buy or sell at those bid and ask prices.

A central banks management of a country’s money supply.

The official US monthly report compiled by the Bureau of Labour Statistics on employment market trends. These are closely followed by the markets.

The rate at which a dealer is willing to sell currency at.

The right, but not the obligation to buy or sell something at some time in the future at a given price.

The minimum fluctuation or smallest price change that a given exchange rate can make.

A family of indexes that measures the average changes on prices received by domestic producers for their output at all stages of processing.

An indicative price.

A recovery in an exchange rate price after a period of decline.

The difference between the highest and lowest price of a currency recorded during a given trading period.

The price of one currency in terms of another.

A reserve currency, or anchor currency which is held in significant quantities by a central bank as a store of international liquidity. These are normally US Dollar, Euro and Pounds Sterling.

The degree of uncertainty associated with an investment.

Thorough financial analysis of the market and client’s position and use of appropriate.

Where a deal settlement is rolled over to another value date based on the interest rate differential of the two currencies.

A transaction that matures on the day that it takes place (Value today).

Rate at which the bank is willing to sell currency.

The actual physical exchange or one currency for another to complete a transaction.

The business day specified by which an FX contract between two parties must be settled between the buyer and the seller.

A market position where the client has sold a currency they do not already own.

The difference between the bid and ask price of a currency.

A market which has more potential sellers than buyers. This is often referred to as a buyer’s market, as the purchasers hold much of the power in negotiation.

The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another.

Analysis based on market movement chart study, past prices and volume trends to forecast future market activity such as price and trend developments.

The old terminology for what is now called an electronic funds transfer (EFT) or wire.

A market where the volume of trading is low, resulting in more volatile prices. The low number of bids and asks will also typically result in larger spread between the two quotes.

The buying or selling of currencies after accepting a price from a dealer.

A measure of the amount by which the exchange rate is expected to fluctuate over a given period.

The buying or selling of currencies after accepting a price from a dealer.

A measure of the amount by which the exchange rate is expected to fluctuate over a given period.

The graph showing changes in interest rate yield depending on time to maturity.

The graph showing changes in interest rate yield depending on time to maturity.