The interest rates applicable to deposits domiciled in the country of origin. Value may vary from Euro deposits due to taxation and varying market practices.
Less than the spot price. For example, forward discount.
Quoting in fixed units of foreign currency against variable amounts of the domestic currency.
Deliberate downward adjustment of a currency against its fixed parities or bands which is normally accompanied by formal announcement.
All the information required to finalise a foreign exchange transaction, i.e. name, rate, dates, and point of delivery.
Term referring to a group dealing with a specific currency or currencies.
A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterised by high leverage.
The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Also referred as the "hedge ratio".
A ratio spread of options established as a neutral position by using the deltas of the options concerned to determine the hedge ratio.
A method used by option writers to hedge risk exposure of written options by purchase or sale of the underlying instrument in proportion to the delta.
The settlement of a transaction by receipt or tender of a financial instrument or currency.
The date of maturity of the contract, when the final settlement of transaction is made by exchanging the currencies. This date is more commonly known as the value date.
Shortfall in the balance of trade, balance of payments, or government budgets.
The latest day or time by which the buyer of an option must intimate to the seller his willingness or unwillingness to exercise the option.
An individual or firm acting as a principal, rather than as an agent, in the purchase and /or sale of securities. Dealers trade for their own account and risk in contrast to the brokers who trade only on behalf of their clients.
The primary method of recording the basic information relating to a transaction.
The date on which a transaction is agreed upon.
A Day Trading deal is a currency exchange deal which renews automatically every night at 22:00 (GMT time) starting the day the deal was made and until it ends. The deal ends in one of the following events:
As long as the deal is open, it is charged a renewal fee every night at 22:00 (GMT time).
An order that if not executed on the specific day is automatically canceled.