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FOREX GLOSSARY


Account
Record of all transactions

Account Balance
Amount of money in an account

Account Statement report
This report will give the client all the debit and credit activity that occurs in the client account over a user specified time period.

Account Status window
The Account Status Window is the window that shows the Margin Monitor. Including is account balances, and the unrealized profit/loss on open positions. It also has a numerical and graphical representations of the margin levels for the client given existing open positions.

Account Value
The current value of a customers account given the amount of money deposited and changes as a result of profits and losses from existing and closed out positions, credits and debits from daily rollover and charges from such things as commissions, transfer fees or bank related fees if applicable.

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.
Adjustment
Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or. Adjustment - Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.

Aggregate Demand
Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and firms in other countries for good and services.

Aggregate Risk
Size of exposure of a single customer to a market related movement.

Aggregate Supply
Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.

Appreciation
Describes a currency increasing or strengthening in response to a market reaction

Arbitrage
Taking advantage of countervailing prices in different markets by the purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market to profit from small price differentials

Around
Dealer jargon used in quoting when rhe forward premium/discount is near parity.For example,”two-two around would translate into 2 points to either side of the present spot

Asset Allocation
Dividing funds among different investment alternatives in order to attempt to achieve diversification or maximum return.

Ask, Offer
The price, or rate, that a willing seller is prepared to sell at

Association Cambiste Internationale
The international society of foreign exchange dealers consisting of national "Forex clubs" affiliated on a worldwide basis.

At best
A specific instruction given to a dealer to buy or sell at the best rate that can be obtained. The term is synonymous with the term “at the market” or is implied by the customer issuing a market order.

At or Better
An order to deal at a specific rate or better.

At the Price Stop-Loss Order
A stop-loss order that must be executed at the requested level regardless of market conditions

Ausie
The Australian Dollar

Authorized dealer
A financial institution or bank authorized to deal in foreign exchange.

Average Rate Option
A contract where the exercise price is based on the difference between the strike price and the average spot rate over the contract period. Sometimes called an "Asian option".