Real Time Forex Quotes
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Finex - Currency trading unit at the New York Cotton Exchange.
Firm Quote - When a buyer or seller requests a firm quote, the dealer provides a bid and ask quote that can be immediately executed if the buyer or seller wishes
Fixed exchange rate - Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band.
Flexible exchange rate - Exchange rates with a fixed parity against one or more currencies with frequent revaluation's. A form of managed float.
Fixing - Determining rates by selecting a level which, as well as possible, balances buying and selling pressure. An example is London Gold Fixing.
Floating exchange rate - An exchange rate where the value is determined by market forces. But even floating currencies are subject to intervention by the monetary authorities.
FOMC - Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.
Foreign Exchange - The purchase or sale of a currency against sale or purchase of another.
Foreign Exchange Centers - The largest forex center in the world is London. Other financial centers which follow the sun across the sky are New York, Tokyo, Hong Kong, Singapore, and Zurich.
Forex - Term commonly used when referring to the foreign exchange market.
Forward - A transaction that settles at a future date.
Forward margins - Discounts or premiums between spot rate and the forward rate for a currency. Quoted in points.
Forward Operations - Foreign exchange transactions, on which the fulfillment of the mutual delivery obligations is made on a date later than the second business day after the transaction was concluded.
Forward Outright - A commitment to buy or sell a currency for delivery on a specified future date or period.
Forward Point - Differential added to or subtracted from the spot rate to calculate the forward rate. The differential is based on anticipating future conditions and fluctuates accordingly.
Forward Rate - Forward rates are quoted in terms of forward points , which represents the difference between the forward and spot rates. In order to obtain the forward rate from the actual exchange rate the forward points are either added or subtracted from the exchange rate.
Free Reserves - The margin by which excess reserves exceed borrowings.
Front Office - The activities carried out by the dealer , normal trading activities.
Fundamentals - The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
Fundamental Analysis - The study of economic factors (fundamentals) that can influence prices in financial markets.
Funding Currencies - Low interest rate currencies. Used to finance carry trades.
Futures - An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange while forwards are traded over the counter (OTC).
FX - Foreign Exchange.
- G7 – Group of seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy.
- G10 - G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions.
- Gap – An area on chart without reciorded price activity.
- Going long - The purchase of a stock, commodity, or currency for investment or speculation, with assumption of price increase.
- Going short – Selling of a stock, commodity, or currency that one deosn’t own. Betting that price will head lower.
- Gold Standard - The original system for supporting the value of currency issued. The price of gold is fixed against the currency and it means that the increased supply of gold does not lower the price of gold but causes prices to increase.
- Golden Cross – Term in technical analysis, when two moving averages intersect, usually a short one like a 10 period and a longer one such as 50 period. This is considered a favorable sign that the underlying currency will move in the same direction
- Goldilocks Economy - Term which describes an economy that has steady growth and acceptable inflation. In this sense, the economy is not too hot and not too cold.
- Good until canceled - An instruction to a broker that unlike normal practice the order does not expire at the end of the trading day, but is valid until canceled.
- Grid Trading - A series of positions and open orders that are built with a predetermined spread defined by the trader.
- Gross Domestic Product - Total value of a country's output, income or expenditure produced within the country's physical borders.
- Gross National Product - Gross domestic product plus " factor income from abroad" - income earned from investment or work abroad.
- Hard currency - Any one of the major world currencies that is well traded and easily converted into other currencies.
- Head and Shoulders - A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate a that a further major fall is imminent. The breach of the neckline is the indication to sell.
- Hedge - The purchase or sale of options or futures contracts as a temporary substitute for a transaction to be made at a later date. Usually it involves opposite positions in the cash or futures or options market.
- Hedge Fund - A private fund which usually solicits investments from wealthy individuals. It is unregulated as it's assumed that the investors are knowledgeable and realize the speculative nature of the fund. It often invests in instruments that are considered riskier, but with bigger potential return.
- Hedged position - One open buy position and one open sell position in the same currency.
- Hit the bid - Acceptance of purchasing at the offer or selling at the bid.
- Holder - Buyer and subsequently owner of a currency pair or any other financial instrument.
- IFEMA - International Foreign Exchange Master Agreement
- IMF - International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term and encourage liberalization of exchange rates. The IMF supports countries with balance of payments problems with the provision of loans.
- IMM - International Monetary Market part of the Chicago Mercantile Exchange that lists a number of currency and financial futures Implied volatilityA measurement of the market's expected price range of the underlying currency futures based on the traded option premiums.
- Implied Rates - The interest rate determined by calculating the difference between spot and forward rates.
- Indicative quote - A market-maker's price which is not firm.
- Inflation - Continued rise in the general price level in conjunction with a related drop in purchasing power. Sometimes referred to as an excessive movement in such price levels.
- Initial margin - The margin required by a Foreign Exchange firm to initiate the buying or selling of a determined amount of currency.
- Interbank Market - A market in which financial institutions can trade. The term refers to short term money or foreign exchange markets that are only accessible to banks or financial institutions. There is no physical market place; the transactions take place over communication networks such as Bloomberg or Reuters.
- Inter-bank rates - The bid and offer rates at which international banks place deposits with each other. The basis of the Interbank market.
- Interday Trading - Positions that are opened and closed within the same trading day.
- Interest Arbitrage - Switching into another currency by buying spot and selling forward, and investing proceeds in order to obtain a higher interest yield. Interest arbitrage can be inward, i.e. from foreign currency into the local one or outward, i.e. from the local currency to the foreign one.
- Interest parity - One currency is in interest parity with another when the difference in the interest rates is equalized by the forward exchange margins.
- Interest rate Swaps - An agreement to swap interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. It is the interest cash flows be they payments or receipts that are exchanged.
- International Organization for Standardization - The organization responsible for developing the standardized forex trading codes used by traders, such as GBP for British Pound or USD or US Dollar.
- Internationalization - Referring to a currency that is widely used to denominate trade and credit transactions by non residents of the country of issue. US dollar and Swiss Franc are examples.
- Intervention - Action by a central bank to effect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.
- Intra Day Position - Positions that are opened and closed within the same trade day.
- Introducing Broker - A person or firm that introduces customers to a market maker often in return for commission or a portion of the spread.
- Jobber - A trader whose strategy is to enter and exit trades quickly for small but frequent profit, without carrying a position overnight.
- Jurisdiction Risk - The risk that funds will be lost when placed under the jurisdiction of a foreign authority.
- Key Currency - For smaller countries, the act of orienting their currency to that of a major trading partner.
- Kiwi - Traders' nickname for the New Zealand Dollar.