Market terms Glossary

Simple definitions to international markets trading terminology.


Market slang for Swiss Franc.


Society for Worldwide Interbank Financial Telecommunication is a clearing system for international trading.


The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.

Support Levels

A price level at which the buying is expected to take place.

Structural Unemployment

Unemployment levels inherent in an economic structure.


A combination of two puts and one call.

Strike Price

Also called exercise price. The price at which an option holder can buy or sell the underlying instrument.


The simultaneous purchase/sale of both call and put options for the same share, exercise/strike price and expiry date.

Stop Out Price

US term for the lowest accepted price for Treasury Bills at auction.

Stop Loss Order

An order placed with a broker or market maker to close a position when it reaches a specified price in the market lower than the current rate. The intention being to limit the amount of loss made.


British pound.


Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the forex market.

Standard and Poors (S&P)

A US firm engaged in assessing the financial health of borrowers. The firm also has generated certain stock indices i.e. S&P 500.


Recession or low growth in conjunction with high inflation rates.

Stable Market

An active market which can absorb large sale or purchases of currency without having any major impact on the interest rates.


(1) The difference between the bid and ask price of a currency.
(2) The difference between the price of two related futures contracts.
(3) For options, transactions involving two or more option series on the same underlying currency.


(1) The most common foreign exchange transaction.
(2) Spot refers to the buying and selling of the currency where the settlement date is two business days forward.

Spot Price/Rate

The price at which the currency is currently trading in the spot market.

Spot Next

The overnight swap from the spot date to the next business day.

Soft Market

More potential sellers than buyers, which creates an environment where rapid price falls are likely.


A market position where the client has sold a currency or asset he does not already own. Usually expressed in base currency terms.


Actual physical exchange of one currency or asset for another.

Settlement Date

It means the business day specified for delivery of the currencies bought and sold under a forex contract.

Selling Rate

Rate at which a bank is willing to sell foreign currency.


Standard International Trade Classification. A system for reporting trade statistics in a common manner.