Forex Terms Letters G,H and I

A-C

D-F

G-I

J-L

M-O

P-S

T-Z

Forex Terms beginning with letter T

Take Profit Order: A customer's instructions to buy or sell a currency pair which, when executed, will result in the reduction in the size of the existing position and show a profit on said position.
T-Bill : Treasury Bill.
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.
Technical Correction : An adjustment to price not based on market sentiment but technical factors such as volume and charting.
Terms of Trade : The ratio between export and import price indices.
Theta : A measure of the sensitivity of the price of an option to a change in its time to expiry.
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.
TIBOR : Tokyo Inter-bank Offered Rate.
Tick : A minimum change in price, up or down.
TIFFE : Tokio International Financial Futures Exchange.
Tomorrow Next (Tom/Next), (T/N), T/N Roll: The process of moving the settlement value date on an open position forward from one business day after the trade date (tomorrow), to the next valid value date (next), the spot value date.
Trade Date : The date on which a trade occurs.
Tranche : A portion of a deal or structured financing, specifically used for borrowings from the IMF.
Transaction : The buying or selling of securities resulting from the execution of an order.
Transaction Date : The date on which a trade occurs.
Transaction Exposure : Potential profit and loss generated by current foreign exchange transactions
Turnover: The total volume of all executed transactions in a given time period.
Two-Way Price: A quote in the foreign exchange market that indicates a bid and an offer.

Forex Terms beginning with letter U

Under-Valuation : An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.

Forex Terms beginning with letter V

Value Date : For exchange contracts it is the day on which the two contracting parties exchange the currencies which are being bought or sold. For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date.
Value Spot : Normally settlement is for two working days from the date the contract is entered into. Value Today Transaction is executed for same day settlement; sometimes also referred to as "cash transaction".
Vanilla : A simple option whose terms and conditions do not include any provisions other than exercise style, expiry and strike. To compare with exotic options which have additional terms.
Variation Margin : Funds required to be deposited by a client when a price movement has caused funds to fall below the stipulated percentage of the value of the contract.
Vega : Expresses the price change of an option for a one per cent change in the implied volatility.
Velocity of Money : The speed with which money circulates or turnover in the economy. It is calculated as the annual national income: average money stock in the period.
Volatility (VOL): Statistical measure of the change in price of a financial currency pair over a given time period.
Vostro Account : A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.

Forex Terms beginning with letter W

Wholesale Money : Money borrowed in large amounts from banks and institutions rather than from small investors.
Wholesale Price Index : It measures changes in prices in the manufacturing and distribution sector of the economy and tends to lead the consumer price index by 60 to 90 days. The index is often quoted separately for food and industrial products.
Working day : A day on which the banks in a currency's principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both (all relevant currency centers in the case of a cross) are open.
World Bank : A bank made up of members of the IMF whose aim is to assist in the development of member states by making loans where private capital is not available.
Writer : The seller of a position. Also known as the grantor of the trade. "Writing a Currency" is to sell it.

Forex Terms beginning with letter X

Forex Terms beginning with letter Y

Yard: A slang word used in the currency industry meaning 'billion'.
Yield Curve : The graph showing changes in yield on instruments depending on time to maturity. A system originally developed in the bond markets is now broadly applied to various financial futures. A positive sloping curve has lower interest rates at the shorter maturities and higher at the longer maturities. A negative sloping curve has higher interest rates at the shorter maturities.

Forex Terms beginning with letter Z

Z-Certificate : Certificate issued by the Bank of England to "discount houses" in lieu of stock certificates to facilitate their dealing in the short dated gilt edge securities.
Zero Coupon Bond : A bond that pays no interest. The bond is initially offered at a discount to its redemption value.

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