Glossaire

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.

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

Traders and/or price action are acting with conviction.

A financial professional who has expertise in evaluating investments and puts together buy, sell and hold recommendations for clients.

A product is said to 'appreciate' when it strengthens in price in response to market demand.

The simultaneous purchase or sale of a financial product in order to take advantage of small price differentials between markets.

Refers to the central banks or monetary authorities of Asian countries. These institutions have been increasingly active in major currencies as they manage growing pools of foreign currency reserves arising from trade surpluses. Their market interest can be substantial and influence currency direction in the short-term.

23:00 – 08:00 GMT.

The price at which the market is prepared to sell a product. Prices are quoted two-way as Bid/Ask. The Ask price is also known as the Offer. In FX trading, the Ask represents the price at which a trader can buy the base currency, shown to the left in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the Ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs. In CFD trading, the Ask also represents the price at which a trader can buy the product. For example, in the quote for UK OIL 111.13/111.16, the product quoted is UK OIL and the Ask price is £111.16 for one unit of the underlying market.

An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.

An instruction given to a dealer to buy or sell at a specific price or better.

A term for the Australian Securities Exchange (ASX 200), which is an index of the top 200 companies (by market capitalization) listed on the Australian stock exchange.

Refers to the AUD/USD (Australian Dollar/U.S. Dollar) pair. Also "Oz" or "Ozzie".