Glossary – Trading
There are 14 names in this directory beginning with the letter A.
Accrual
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.
Adjustment
Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate.
American Option
An Option that can be exercised any time prior to and including its maturity date. American Options are the majority of the traded options. European Options can only be exercised at maturity.
Appreciation
Used to describe a currency which increases its value in response to market demand as opposed to official adjustment.
Arbitrage
The practice of taking advantage the price difference on purchase or sale of a financial product with goal of profiting from pricing inconsistencies.
Ask (offer) price
The lowest price for a specific currency offered by a seller. The Ask price is also known as the Offer and prices are quoted in Bid/Ask. For example in the quote USD/EUR 1.7190/95, the Ask price is 1.7195 which means that you can buy 1 USD for 1.7195 EURO. USD is the base currency.
Automated Forex Trading
A method of trading foreign currencies buy or sell orders automatically based on a set of criteria and analyses.Criteria in Autotrading can differ greatly.
