Depreciation
- A fall in the value of a currency due to market forces. Derivative – A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument. Devaluation - The deliberate downward adjustment of a currency’s price, normally by official announcement.
E
Economic Indicator
- Economic indicators such as GDP, foreign investment, and the trade balance reflect the general health of an economy, and are therefore responsible for the underlying shifts in supply and demand for that currency.
End Of Day Order (EOD)
- An order to buy or sell at a specified price. This order remains open until the end of the trading day which is typically 5PM ET. EURO – since 2002 the Euro has been the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU). Members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal. European Central Bank (ECB) - the Central Bank for the new European Monetary Union.
F
Federal Deposit Insurance Corporation (FDIC)
- The regulatory agency responsible for administering bank depository insurance in the US. Federal Reserve System - The central bank of the United States, with responsibility for implementing the country's monetary policy and regulating member banks of the System. The Fed was created in 1913 and is composed of 12 regional Federal Reserve Banks and a national Board of Governors
Fixed Exchange Rate
- Official rate set by monetary authorities for one or more currencies
Floating Exchange Rate
s - Floating exchange rates refer to the value of a currency as decided by supply and demand
Flat/square
- Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position. Foreign Exchange - (Forex, FX) is the simultaneous buying of one currency while selling for another. This market of exchange has more buyers and sellers and daily volume than any other in the world. Taking place in the major financial institutions across the globe, the forex market is open 24-hours a day. Forward - The pre-specified exchange rate for a foreign exchange contract settling at some