Foreign Exchange Glossary

Glossary

At Exchange Rate News, we understand that the world of foreign exchange can be a confusing place. This page aims to simplify some of the jargon you may encounter when dealing with a currency broker or examining the markets.

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A

Accountability
Affordability Index
Amortisation
Asset
Average Industrial Wage
Austerity

B

Balance of Payments
Balance of Trade
Bank Identifier Code (BIC)
Base Money
Bearish
Beige Book
Bilateral Procedure
Black Economy
Bond Market
Broad Economic Policy Guidelines
Building Permits
Bullish
Bureau of Labour Statistics (BLS)

C

Central Bank
Central Bank Credit Facility
Central Bank Independence
Collateral
Commercial Bank
Consumer Price Index (CPI)
Convergence Criteria
Correspondent Central Banking Model (CCBM)
Council of the European Union
Counterparty
Credit Institution
Currency in Circulation

D

Day Count Convention
Debt Instrument
Debt Market
Debt Ratio
Deficit
Deflation
Degree of Openness
Deposit
Deposit Facility
Deposit Rate

E

Economic and Financial Committee (EFC)
Economic and Monetary Union (EMU)
Enhanced Credit Support
Equity
Equity Market
Equity Price Risk
Euro
Euro Interbank Offered Rate (EURIBOR)
Euro Overnight Index Average (EONIA)
European Central Bank (ECB)
European Commission (EC)
European Council
European Economic Area (EEA)
European Financial Stabilisation Mechanism (EFSM)
European Financial Stability Facility (EFSF)
European Monetary System (EMS)
European Parliament
European System of Central Banks (ESCB)
European System of Financial Supervision (ESFS)
European Systemic Risk Board (ESRB)
European Union (EU)
Eurosystem
Eurozone
Exchange Rate Mechanism II (ERM II)
Executive Board

F

Fixed Exchange Rates
Floating Exchange Rates
Forex
Forward Contract
Forward Rates
Free Trade

G

G7
G10
G20
Gap
General Agreement on Tariffs and Trade (GATT)
General Arrangements to Borrow (GAB)
Global Depository Receipt (GDR)
Gross Domestic Product (GDP)
Gross Domestic Product (GDP) Deflator
Gross National Product (GNP)
Gross Profit

H

Hard Currency
Hedge Fund
Hedging
Herstatt Risk
Hyperinflation
Hypothecation

I

IFO Index
Illiquid
Index
Inflation
Inflation Risk
Institute of International Finance (IIF)
Institute of Supply Management (ISM)
Interbank Market
International Chamber of Commerce (ICC)
International Finance Corporation (IFC)
International Labour Organisation (ILO)
International Labour Organisation (ILO) Measure of Unemployment
International Monetary Fund (IMF)

J

Jobless Claims
Jumbo Bonds
Junk Bonds

K

Kerb Market
Key Rate
Keynesian Economics
Kicker

L

Labour Force
Labour Force Participation Rate
Labour Productivity
Laffer Curve
Lagging Indicators
Leading Indicators
LEAPS
Lender of Last Resort
Letter of Credit
Limit Order
Linked Trade
Liquidity
Liquidity Risk
Loans for Home Purchase
London Interbank Bid Rate (LIBID)
London Interbank Offered Rate (LIBOR)
London Interbank Mean Rate (LIMEAN)
Longer-Term Interest Rates
Loss Limit

M

Macroeconomics
Managed Currency
Margin
Margin Account
Margin Call
Margin Trading
Marginal Lending Facility
Markdown
Market Economy
Market Order
Market Risk
Market Trend
Markets in Financial Instruments Directive (MIFID)
Maturity
Maturity Value
Maximum Bid Limit
Maximum Bid Rate
Middle Office
Minimum Bid Rate
Monetary Financial Institution (MFI)
Monetary Policy
Monetary Policy Committee (MPC)
Money Market
Moving Average
Moving Average Convergence/Divergence (MACD)
Municipal Notes

N

Naked Position
Naked Short
Naked Warrant
National Accounts
National Central Bank (NCB)
National Debt
Nationalisation
Near Money
Negative Carry
Net
Net Asset Value
Net Assets
Net Earnings
Net Profit
Net Transaction
Netting
Neutrality of Money
Nominal Value
Nominee Account
Non-Farm Payrolls
Notes

O

Odd Lot Trade
Offer
Offer for Sale
Offer for Subscription
Offer Market
Offshore Fund
Oligopoly
One Cancels the Other (OCO)
Open Market Operations
Open Position
Option
Option Holder
Option Premium
Option Series
Option Writer
Operating Income Before Depreciation and Amortisation (OIBDA)
Order Driven Market
Organisation for Economic Co-operation and Development (OECD)
Organisation of Petroleum Exporting Countries (OPEC)
Output Gap
Outright Purchases
Over the Counter (OTC)
Overbought
Overdraft
Overnight Deposits
Overnight Limit
Overnight Rate
Oversold

P

Paper Barrels
Paris Interbank Offered Rate (PIBOR)
Parity
PBIT
Peaks
Pip
Planned Economy
Political Risk
Pre-Market Trading
Primary Commodities
Producer Price Index (PPI)
Productivity
Profit
Profit Margin
Public Goods
Public Offering Price (POP)
Public Sector Net Cash Requirement (PSNCR)
Purchasing Managers Index (PMI)
Purchasing Power Parity (PPP)
Put Option

Q

Quantity Demand
Quantity Supplied
Quick Tender
Quota

R

Rally
Rate of Change (ROC)
Real Effective Exchange Rate (REER)
Recession
Red Book
Refinancing
Refining Margin
Reflation
Refunding
Relative Strength Index (RSI)
Reporting Dealer
Repurchase Agreement
Repurchase Date
Repurchase Operation
Repurchase Price
Required Return
Reserve Account
Reserve Currency
Reserve Requirements
Resilience Test
Resistance
Retail Banking
Retail Price Index (RPI)
Revaluation
Revenue
Reverse Transaction
Risk

S

SAFE
Safe Haven Currency
Secondary Market
Secured Debt
Security
Short Selling
Short Term Borrowing
Sovereign Issue
Sovereign Risk
Special Drawing Rights (SDR)
Speculation
Spot
Spot Market
Spot Month
Spread
Stagflation
Standby Arrangement
Standby Credit
Standby Loan
Stochastic Oscillator
Stockbroker
Stock Exchange
Stock Index
Stock Lending
Stock Split
Stop Loss Order
Strike Price
Structural Adjustment Program
Structural Deficit
Subordinated Debt
Support
Surplus
Swap
Swap Spread
Syndicate

T

Tapering
Tick
Ticker
Transaction Costs

U

Uptick

V

Volatility
Volume

W

X

Y

Z