Forex Guide,Forex Tips&Forex Book to maximize profit in forex at myforexbook.blogspot.

FOREX GLOSSARY


Day Order
An order that if not executed on the specific day is automatically canceled.

Day Trade
A trade opened and closed on the same trading day.

Day Trader
A trader who buys and sells on the basis of small short-term price movements.

Day Trading
Opening and closing the same position or positions within the same trading session.

Deal Blotter
listing of all the deals that were executed over a specified time period, usually the trading day.

Deal date
The date on which a transaction is agreed upon.

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

Dealer
An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission

Dealing Desk
Generally speaking, the collection of dealers working for forex company that facilitate the pricing and execution of customer orders.

Declaration Date
The latest day or time by which the buyer of an option must indicate to the seller his intention to the option.

Default
Generally speaking a breach of contract.

Deficit
A negative balance of trade or payments.

Delivery
An actual delivery where both sides transfer possession of the currencies traded.

Delivery Date
The date of maturity of the contract, when the exchange of the currencies is made. This date is more commonly known as the value date in the FX or money markets.

Delivery Month
The calendar month in which a futures contract comes to maturity and becomes deliverable.

Delivery Points
Those locations designated by futures exchanges at which the currency represented by a futures contract may be delivered in fulfilment of the contract

Delivery Risk
A term to describe when a counterparty will not be able to complete his side of the deal, although willing to do so.

Delta
The change in price of an option relative to a change in the underlying fx spot rate.

Deposit
The borrowing and lending of cash. The rate that money is borrowed/lent at is known as the deposit rate (or depo rate). Certificates of Deposit (CD`S) are also tradable instruments.

Depreciation
A decline in the value of a currency due to market forces

Depth of market
A measure of the size of volume available for transaction purposes for a particular currency pair at a specific point in time.

Desk
Term referring to a group dealing with a specific currency or currencies.

Details
All the information required to finalize a foreign exchange transaction, i.e. name, rate, and dates

Derivative
A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument

Devaluation
The deliberate downward adjustment of a currency's price, normally by official announcement

Direct Quotation
Quoting in fixed units of foreign currency against variable amounts of the domestic currency.

Dirty Float
Floating a currency when the rate is controlled by intervention by the monetary authorities.

Discount Rate
The interest rate at which eligible depository institutions may borrow funds directly from the Federal Reserve Banks. This rate is controlled by the Federal Reserve and is not subject to trading.

Discount
Forward rate is lower than spot rate (2) an option that is trading for less than its intrinsic value.

Discreationary Account
An account in which the customer permits a trading institution to act on the customer's behalf in buying and selling currency pairs. The institution has discretion as to the choice of currency pairs, prices, and timing-subject to any limitations specified in the agreement.

Discretionary Income
Net of tax and fixed personal spending commitments.

DM, DMark
Deutsche Mark

Domestic Rates
The interest rates applicable to deposits in the country of origin.

Double
An option either to buy or sell an instrument or currency at a specified price. The exercise of the right to sell causes the right to buy to expire and vice versa

Down tick
sale of a security (usually an equity or stock) at a price lower than the previous one.

Durable Goods Order
An economic indicator which measures the changes in sales of products with a life span in excess of three years.