Market terms Glossary

Simple definitions to international markets trading terminology.


Transaction

The buying or selling of securities resulting from the execution of an order.

Transaction Exposure

Potential profit and loss generated by current foreign exchange transactions.

Transaction Date

The date on which a trade occurs.

Tranche

A portion of a deal or structured financing, specifically used for borrowings from the IMF.

Trade Date

The date on which a trade occurs.

Tomorrow Next (Tom next)

Simultaneous buying and selling of a currency for delivery the following day and selling for the next day or vice versa.

Tick

A minimum change in price, up or down.

Thin Market

A market in which trading volume is low and in which consequently bid and ask quotes are wide and the liquidity of the instrument traded is low.

Theta

A measure of the sensitivity of the price of an option to a change in its time to expiry.

Terms of Trade

The ratio between export and import price indices.

Technical Correction

An adjustment to price not based on market sentiment but technical factors such as volume and charting.

Technical Analysis

The study of the price that reflects the supply and demand factors of a currency. Common methods are flags, trend-lines spikes, bottoms, tops, pennants, patterns and gaps.

TIFFE

Tokyo International Financial Futures Exchange.

TIBOR

Tokyo Inter Bank Offered Rate.

T-Bill

Treasury Bill.

Take Profit

An order placed with a broker or market maker to close a position once it reaches a specified rate in the market above the current rate. The intention being to lock in a specific profit amount.