金融學院

The Central Bank of the United States.

Exchange rate regime in which a currency is pegged by the Central Bank so that it cannot fluctuate against other currencies. Currencies can be pegged to other currencies or commodities, such as gold.

To be neither long nor short is the same as to be flat or square. One would have a flat book if he has no positions or if all the positions cancel each other out.

As opposed to a fixed rate, the interest rate on this type of deal will fluctuate with market rates or benchmark rates.

Transaction which involves the actual exchange of two currencies (principal amount only) on a specific date at a rate agreed at the time of the conclusion of the contract and again at a date further in the future at a rate agreed at the time of the contract.

A forward is an agreement with us to exchange one currency for another on an agreed date in the future, at an agreed exchange rate.

Analysis of economic and political data with the goal of determining future movements in a financial market.

"Good Till Cancelled". An order left with a Dealer to buy or sell at a fixed price. The order remains in place until it is cancelled by the client.

The practice of undertaking one investment activity in order to protect against loss in another, e.g. selling short to nullify a previous purchase, or buying long to offset a previous short sale. While hedges reduce potential losses, they also tend to reduce potential profits.

Usually the highest traded price and the lowest traded price for the underlying instrument for the current trading day.

The required initial deposit of collateral to enter into a position as a guarantee of future performance.

The foreign exchange rates at which large international banks quote other large international banks.

Cost of using/borrowing money, expressed as a rate per period of time.

The ability to borrow money to fund trading/investing activity. The amount that can be borrowed varies between brokers, and is quoted as a multiple of maximum position size to deposited funds.

An order to buy at or below a specified price or to sell at or above a specified price.

A market position where the client has bought a currency he/she previously did not hold/ own.

Standardized quantity in forex, composed of 100,000 units of a particular currency pair.

The amount a customer must deposit as collateral to cover any potential losses from adverse movements in prices.

A demand for additional funds. A requirement by a clearing house that a clearing member brings margin deposits up to a required minimum level to cover an adverse movement in price in the market.

Refers to any dealer who provides a two-way quote a bid and ask price in which they stand ready to buy or sell.

Date (or number of years) on which payment of a financial obligation is due.

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

A contingent order where the execution of one part of the order automatically cancels the other part.

Used to describe any transaction that is not conducted over an exchange.

The term used in currency market to represent the smallest incremental move an exchange rate can make.

A price level at which you would expect selling to take place.

Where the settlement of a deal is rolled forward to another value date.

For spot foreign exchange trades it is the actual physical exchange of one currency for another.

To go 'short' is to have sold an instrument without actually owning it, and to hold a short position with expectations that the price will decline so it can be bought back in the future at a profit.

Refers to the phenomenon whereby the actual fill price differs from the expected fill price, as a result of a fast-moving market or broker error.

A transaction that occurs immediately, but for foreign exchange transactions the funds will usually change hands within two days after deal is struck.

The difference between the bid and offer (ask) prices; used to measure market liquidity. Narrower spreads usually signify high liquidity.

Spread betting is a type of speculation that involves betting on the price movement of a currency pair without actually purchasing or selling lots.

An order to buy or sell at the market when a particular price is reached.

The price at which a stop order is triggered. For purchases, the stop price acts as a minimum price you will pay if an investment is made. For sales, the stop price acts as the maximum price you will receive if a holding is sold.

A price level at which you would expect buying to take place.

Type of derivative in which two parties agree to exchange one stream of cash flows against another.

An order placed to close a position so as to lock profits once it hits a specific price.

An order specifying the exact rate or number of pips from the current price point at which point a current position should be closed, and gains will be locked in.

An effort to forecast future market activity by analyzing market data such as charts, price trends, and volume.

Both a bid and offer are quoted.

The amount of a specific financial instrument which has exchanged hands during a trading day.

International financial institution that provides leveraged loans to poorer countries for capital programs with a goal of reducing poverty.