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Friday, September 5, 2008
Forex Glossary
Value at Risk
The expected loss from an adverse market movement.
Value Date
The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
Value Spot
Normally settlement for two working days from today. See value date.
Value Today
Transaction executed for same day settlement; sometimes also referred to as "cash transaction.
Velocity of Money
The speed with which money circulates or turnover in the economy. It is calculated as the annual national income: average money stock in the period
Vertical (bear or bull) Spread
The sale of an option with a high exercise price and the purchase (in the case of a bull) or the sale (in the case of a bear ) of an option with a lower exercise price. Both options will have the same expiration date.
Volatility
A statistical measure of a market or a security's price movements over time and is calculated by using standard deviation. Associated with high volatility is a high degree of risk.
Variation Margin
Funds, which are required to bring the equity in an account back up to the initial margin level, calculated on a day-to-day basis.
Volatility
Statistical measure of the change in price of a financial currency pair over a given time period.
Value at Risk
The expected loss from an adverse market movement.
Value Date
The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
Value Spot
Normally settlement for two working days from today. See value date.
Value Today
Transaction executed for same day settlement; sometimes also referred to as "cash transaction.
Velocity of Money
The speed with which money circulates or turnover in the economy. It is calculated as the annual national income: average money stock in the period
Vertical (bear or bull) Spread
The sale of an option with a high exercise price and the purchase (in the case of a bull) or the sale (in the case of a bear ) of an option with a lower exercise price. Both options will have the same expiration date.
Volatility
A statistical measure of a market or a security's price movements over time and is calculated by using standard deviation. Associated with high volatility is a high degree of risk.
Variation Margin
Funds, which are required to bring the equity in an account back up to the initial margin level, calculated on a day-to-day basis.
Volatility
Statistical measure of the change in price of a financial currency pair over a given time period.
Volume
The number, or value, of securities traded during a specific period.
Vostro Account
A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.
The number, or value, of securities traded during a specific period.
Vostro Account
A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.
Labels: Forex Glossary
