The nickname for GBP/USD currency pair.
Foreign exchange rate quoted by a bank each day for small foreign exchange transactions.
The interest cost of financing securities or other financial instruments held.
A carry trade where you are long the high interest currency and short the low interest currency. Excluding the volatility of the currency pair, this forex strategy is profitable based on the interest rate differential between the two countries.
Funds deposited in a trading account.
A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency.
The process of selling or buying a foreign exchange position resulting in the liquidation (squaring up) of the position.
The rate at which a position can be closed based on the market price at end of the day.
Funds that are available to you for the settlement of a foreign exchange transaction.
The fee that a broker may charge clients for dealing on their behalf.
A written document or email confirming a foreign exchange deal between two parties.
A month-to-month economic indicator, which gauges changes in the cost of living by measuring price changes in a common basket of goods and services that most people use, such as food, clothing, transportation, and entertainment.
The agreed exchange rate at which the currency pair may be exchanged on it’s settlement date.
Traders’ term for the Danish Krone.
A statistical term that refers to a relationship between two seemingly independent things. In Forex for example, one could argue that the Euro and the Sterling have a higher correlation than, for example, the Euro and the Brazilian Real.
A participant in a financial transaction.
The other party in a Forex deal. In online spot Forex, the counter party is the market maker.
To take out a forward foreign exchange contract or to close out a short position by buying currency or securities which have been sold.
The exchange rate between two currencies, e.g., AUD/USD.
The money that a country uses. Currencies can be traded for other currencies on the foreign exchange market, so each currency has a value relative to another.
The two currencies that are involved in a transaction.
The risk that shifts in foreign exchange rates may undermine the dollar or any other foreign currency value of overseas investments.