Foreign exchange terms: a glossary
At Halo Financial, we believe every currency transaction should be easy to understand and easy to complete. We’ve included explanations for a number of commonly used currency terms in our Glossary to make the process as transparent and simple as possible.
If you’re not sure about any aspect of your currency trade or need more information and explanation on any of the wording we’ve used, give us a call. All our people are qualified experts and can help you through every stage of your international currency transfers.
A
-
Adjustable peg
An exchange rate system where a country’s exchange rate is pegged (i.e. fixed) in relation to another currency. The official rate may be changed from time to time e.g. Hong Kong Dollar with the US Dollar.
-
Appreciation
A currency is said to appreciate when it strengthens in price response to market demand.
-
Arbitrage
A risk free type of trading where the same currency is bought and sold simultaneously in two different markets in order to cash in on the difference in these markets.
-
Ask (Offer)
The price at which the currency is offered. The price at which a seller is willing to sell. The best offer is the lowest such price offered for sale. For example, if the exchange rate reads GBP/EUR 1.4527/32, the ask price is €1.4532, meaning you can buy one Pound for 1.4532 Euros.
-
Aussie
Market slang for the Australian Dollar.
B
-
Back office
The settlement department and related processes related to the settlement of currency transactions (i.e written confirmation and settlement of trades, record keeping).
-
BACS
Acronym for Bank Automated Clearing System. Payments will take 4 business days to clear into a designated account.
-
Balance-of-Payments (BoP)
A record of a nation’s claims of transactions with the rest of the world over a particular time period.
-
Base rate
The rate at which the Bank of England lends to other banks in the UK.
-
Basis points
One hundredth of a percentage point. 50 basis points [50bp] is half a percentage point.
-
Bear market
A market distinguished by declining prices (e.g GBP/EUR exchange rate falling) accompanied by widespread pessimism.
-
Bear, Bearish
A person who believes that prices/the market will decline. This person’s outlook or opinion would be considered Bearish.
-
Bid
The price that a buyer is prepared to purchase at. The Bid Rate would be the exchange rate we would quote when you buy currency against another.
-
Bid-offer spread
The difference between the buy (bid) and sell (offer) price of a currency.
-
Big figure
Dealer phrase referring to the first few digits of an exchange rate e.g if the GBPEUR exchange rate was €1.4530 the Big figure would be the digit 5. These digits rarely change in normal market fluctuations.
-
Bretton Woods
The site of the conference, which in 1944, led to the establishment of the post war foreign exchange system that remained intact until the early 1970s. The conference resulted in the formation of the IMF. The system fixed currencies in a fixed exchange rate system with 1% fluctuations of the currency to gold or the Dollar.
-
Broken dates
Deals that are undertaken for value dates that are not standard periods e.g. 1 month. The standard periods are 1 week, 2 weeks, 1,2,3,6 and 12 months. Terms also used are odd dates, or cock dates or broken period.
-
Broker
An individual or firm that acts as an intermediary who matches a buyer with a seller. In the foreign exchange market brokers tend to bring buyers and sellers together – a client and market participants.
-
Bull market
A market distinguished by rising prices (e.g GBP/EUR exchange rate rising) accompanied by widespread optimism.
-
Bull, Bullish
A person who believes that prices/the market will rise. This person’s outlook or opinion would be considered Bullish.
-
Buying rate
Rate at which a bank is prepared to buy foreign exchange. Also known as the Bid rate.
-
Buying selling FX
Buying and selling in the foreign exchange market always happen in the currency that is quoted first. ‘Buy Dollar/Yen’ means buy the Dollar/sell the Yen. Traders buy when they expect a currency’s value to rise and sell when they expect a currency to fall.
C
-
Cable
Foreign exchange dealers slang for the British Pound sterling / US Dollar exchange rate. The term’s origins stem from the transatlantic cable laid on the seabed that transmitted the exchange rate between London and New York in the mid 1800s.
-
Candlestick chart
A type of Japanese chart that indicates the trading range (the high’s and low’s) for the day as well as the opening and closing price. The body (jittai) of the candlestick bar is formed by the opening and closing prices. To indicate that the opening was lower than the closing, the body of the bar is left blank. If the currency closes below its opening, the body is shaded or filled. The rest of the range is marked by two ‘shadows’: The upper shadow (uwakage) and the lower shadow (shitakage).
-
Central bank
A central bank provides financial and banking services for a country’s government and commercial banks. It implements the government’s monetary policy, as well, by changing interest rates prints a nation’s currency. In the UK the central bank is the Bank of England (BoE), the US the Federal Reserve (Fed), in Europe the European Central Bank (ECB) and in Japan, the Bank of Japan (BoJ).
-
CHAPS
Acronym for Clearing House Automated Payment System. Assuming they are transferred within time, payments will clear into a designated account the same business day.
-
Chartist
An individual who studies graphs and charts of historic data to find trends and predict future movements that include the observance of certain patterns and characteristics of the charts to derive support and resistance levels.
-
CHIPS
Acronym for Clearing House Interbank Payment System. A computerised system used for foreign exchange Dollar settlements.
-
Cleared
Transferred funds will not be designated as ‘cleared’ until they have passed through the banking system and the beneficiary account to which they have been sent has been credited.
-
Closed position
A transaction that leaves the trade with a zero net commitment to the market with respect to a particular currency.
-
Consolidation
A term used in periods of low volatility when exchange rate movements are relatively static.
-
Consumer Price Index (CPI)
A measure of inflation that tracks the price of a standard basket of goods. An increase in the CPI indicates the cost of that basket of goods in the economy has risen.
-
Correction
In periods of high volatility, if a currency’s exchange rate moves in one direction and then reverses sharply, this is known as a correction.
-
Correlation
A statistical measure referring to the relationship between two or more variables (events, occurrences etc). A correlation between two variables suggests a relationship between these variables. Typically the New Zealand Dollar is closely correlated with the Australian Dollar.
-
Counter-party
The participant, either a bank or a client, with whom the currency transaction is made.
-
Cross-rate
The exchange rate between two currencies e.g. Euro / Yen.
-
Currency
The type of money that a country uses. It can be traded for other currencies on the foreign exchange market so each currency has a value relative to another, which is the basis for trade.
-
Currency risk
Get excellent exchange rates potential loss that could be incurred from an adverse change in exchange rates.
D
-
Day trader
Traders who take positions in the foreign exchange market that are then liquidated prior to the close of the same trading day.
-
Deal ticket/Deal slip
The primary method of recording basic information relating to a transaction.
-
Dealer
One authorised to deal on the foreign exchange market, who by placing the order to buy or sell, acts as the principal or counterpart to a transaction.
-
Dealing systems
Online internet trading platforms that link the contributing banks around the world.
-
Devaluation
Deliberate downward adjustment of a currency’s value versus the value of another currency, normally by a formal announcement from the Central Bank.
-
Direct currency
A currency that is normally quoted as units of currency per US Dollar rather than US Dollars per unit of currency e.g. 1 US Dollar buys 110 Yen.
-
Discount
In foreign exchange, the term refers to a situation where currency can be bought more cheaply for a future date (using a forward contract) than for immediate (spot) delivery.
-
Discount rate
The interest rate at which eligible depository institutions may borrow funds directly from the Federal Reserve Banks. This rate is controlled by the Federal Reserve and is not subject to trading.
-
Durable goods order
An economic indicator that measures the changes in sales of products with a life span in excess of three years.
E
-
Employer Identification Number (EIN)
In the United States, each business is issued with a unique 9-digit Employer Identification Number, also often known as an EIN or a Federal Tax ID Number.
-
Elliot wave principle
A system of empirically derived rules for interpreting action in the markets. It refers to a five-wave/three-wave pattern that forms one complete bull market /bear market cycle of eight waves.
-
Exchange rate risk
The potential loss that could be incurred from an adverse change in exchange rates.
-
Exposure
The potential for running a profit or loss from fluctuations in market prices, risk.
F
-
Factory orders
An economic indicator that refers to the total orders of durable and non-durable goods. The non-durable goods orders consist of food, clothing, light industrial products and products designed for the maintenance of the durable goods.
-
FedWire
An automated communications and settlement system linking the Federal Reserve banks with other banks and with depository institutions.
-
Flat (Square)
Where a client has not traded in that currency or where an earlier deal is reversed thereby creating a neutral (Flat) position.
-
Foreign exchange (Forex or FX)
The simultaneous buying of one currency and selling of another.
-
Foreign exchange centres
London is the largest centre of foreign exchange trading. New York, Tokyo, Singapore, Zurich, Frankfurt and Hong Kong are also important.
-
Forward / forward
A forward / forward foreign exchange deal is one where both legs of the deal have value dates greater than the current spot value date.
-
Forward contract
A forward trade contract is a foreign exchange deal where the exchange of currencies is to be made more than two business days ahead at a fixed exchange rate. A popular hedging tool, it allows companies and individuals to fix a rate of exchange for settlement in the future.
-
Forward outright
Forward foreign exchange trade deal that matures on any day past the spot rate‘s delivery date. Forward Points (Forward Pips or Forward Spread) Forward price used to adjust a spot price to calculate a forward price. It is based on the current spot exchange rate, interest rate differential (see Forward Rate) and the number of days to delivery.
-
Forward rate
Forward currency rates are quoted in terms of forward points, which represents the difference between the forward rates 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. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction, known as the Interest Rate Differential.
-
Front office
Usually comprises of the trading or dealing room.
-
Fundamental analysis
Analysis of economic data and political factors to forecast future currency movements and values.
G
-
G8
The eight leading industrial countries: The United States, Japan, Germany, United Kingdom, China, France, Canada and Italy.
-
Gold standard
The original system for supporting the value of currency issued. The way that where the price of gold is fixed against the currency it means that the increased supply of gold does not lower the price of gold but causes prices to increase.
-
Good Till Cancelled (GTC)
An order, such as a Stop Loss and Limit Order, left with a dealer to buy or sell at a fixed price and which will remain in place until it is executed or cancelled by the client.
-
Greenback
Market slang for the US Dollar
-
Gross Domestic Product (GDP)
Total value of a country’s output, income or expenditure produced within the country’s physical borders.
-
Gross National Product (GNP)
Gross domestic product plus ‘ factor income from abroad ‘ – income earned from investment or work abroad.
H
-
Head and shoulders
A pattern in price trends which chartist consider indicates a price trend reversal.
-
Hedging
A hedging transaction is one that protects an asset or liability against a fluctuation in the foreign exchange rate. Instruments used are varied and include forwards, futures, options and combinations of all of them. For commercial foreign exchange deals the most common hedging tool is the Forward Contract.
-
Honky
Market slang for the Hong Kong Dollar.
I
-
IBAN
Acronym for International Bank Account Number. It is a standardised means of identifying bank accounts used for European cross-border payments.
-
IMF
Acronym for the International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term and encourage liberalisation of exchange rates. The IMF supports countries with balance of payments problems with the provision of loans.
-
IMM
Acronym for the International Monetary Market, part of the Chicago Mercantile Exchange that lists a number of currency and financial futures.
-
Inconvertible currency
Currency which cannot be exchanged for other currencies, either because this is forbidden by the foreign exchange regulations or controlled by that country’s central bank.
-
Indicative quote
A dealer’s price that is not firm so can’t be dealt on.
-
Indirect currency
A currency that is normally quoted as dollars per unit of currency rather than the normal quote method of units of currency per Dollar. Pounds sterling is the most common example; 1 Pound buys 1.8000 US Dollars.
-
Industrial production index
A coincident indicator measuring physical output of manufacturing, mining and utilities.
-
Inflation
An economic condition reflecting a continued rise in the general price level in conjunction with a related drop in purchasing power.
-
Instruction
The specification of the banks at which funds shall be paid upon settlement.
-
Interbank broker
A specialist broker who acts as an intermediary between market makers who wish to buy or sell FX, without revealing their identities to other market makers.
-
Interbank rates
The foreign exchange rates at which international banks trade currencies with each other. The basis of the Interbank market.
-
Intervention
Deliberate action by a central bank to affect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.
J
-
Jawbone
Announcements and statements by politicians or monetary authorities to influence decisions by business, consumer, or trade union sectors, often associated with forecasts and policy implications.
K
-
Kiwi
Market slang for the New Zealand Dollar.
L
-
Lagging indicator
A measure of economic activity that tends to change after change has occurred in the overall economy e.g. Consumer Price Index (CPI).
-
Leading indicators
Economic statistics that are considered to predict future changes in economic growth rates and total business activity, e.g. unemployment, retail sales.
-
Left-hand side
Taking the left hand side of a two way quote i.e. selling the quoted currency.
-
LIBOR
Acronym for the London Interbank Offered Rate, the rate charged by one bank to another for lending money.
-
LIFFE
Acronym for the London International Financial Futures Exchange.
-
Limit order
An order to buy or sell a specified amount of currency at a pre-determined exchange rate that is better than where the prevailing spot rate. A limit order is a 24-hour automated order which is intended to allow buyers of currency to purchase at or near the top of a currency range or allow sellers of currency to sell at or near the bottom of a currency range. It is a popular market tool as it allows companies or individuals to trade currency at the best possible price without the need to constantly monitor exchange rates.
-
Liquidity
The ability of a market to accept large transactions with no impact on price stability.
-
Long
A market position to buy an excess of a particular currency that was not previously held.
M
-
M1
Cash in circulation plus demand deposits at commercial banks.
-
M2
Includes demand deposits time deposits and money market mutual funds excluding large CDs.
-
M3
In the UK, M3 comprises of M1 plus public and private sector time deposits and sight deposits held by the public sector.
-
Make a market
A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.
-
Managed float
When the monetary authorities intervene regularly in the market to stabilise the rates or to aim the exchange rate in a required direction e.g. The Bank of Japan.
-
Margin
Margin is a cash deposit provided by clients as collateral to secure a trade and cover any losses (if any) that may result from adverse movements in exchange rates.
-
Margin call
A demand for additional funds to restore the originally agreed margin percentage of a contract that has been affected by an adverse movement in the exchange rate.
-
Mark to market
The regular adjustment of an outstanding position to reflect accrued profits and losses, often required to calculate margin calls.
-
Market
participants routinely use Support Levels as a guide to place automated orders such as Stop Loss Orders. See Resistance Level.
-
Market maker
A market maker is a dealer or firm authorised to create and maintain a market in foreign exchange by supplying prices and being prepared to buy or sell at those bid and ask prices.
-
Maturity
Date for settlement of a contract.
-
Monetarism
A school of economics that believes that strict control of money supply is the principal tool for implementing monetary policy, especially against inflation. Policies include cuts in public spending and interest rates.
-
Monetary easing
Part of Central Bank monetary policy where the interest rate is decreased or the money supply increased to stimulate an economy.
-
Monetary policy
A central bank’s management of a country’s money supply. Economic theory underlying monetary policy suggests that controlling the growth of the amount of money in the economy is the key to controlling prices and therefore inflation. However, central banks monetary capability is severely limited by global money movements. This forces them to use the indirect tool of exchange rate manipulation.
-
Monetary tightening
Part of Central Bank monetary policy where the interest rate is increased or the money supply reduced to ward off inflation.
-
Monetary union
An agreement between countries to maintain a fixed exchange rate between their currencies. The Euro is a monetary union between 12 countries and the US Dollar is a monetary union between all States in the Union.
-
Money market
A market consisting of financial institutions and dealers in money or credit who wish to either borrow or lend.
-
Money supply
The amount of money in the economy, which can be measured in a number of ways. See definitions of M1-M3.
N
-
Naked intervention
A central bank type of intervention in the foreign exchange market that consist solely of the foreign exchange activity. This type of intervention has a monetary effect on the money supply and a long-term effect on foreign exchange.
-
Netting
A process that enables institutions to settle only the net positions with one another at the end of the day, in a single transaction, not trade by trade as in gross settlement.
-
Nostro account
A foreign currency current account maintained with another bank. The account is used to receive and pay currency assets and liabilities denominated in the currency of the country in which the bank is resident.
O
-
OECD
Acronym for Organisation of Economic Co-operation and Development.
-
Offer
The rate at which a dealer is willing to sell currency at.
-
Offered market
Temporary situation where offers exceed bids.
-
Old lady
Old lady of Threadneedle Street, a term for the Bank of England.
-
One Cancels Other (OCO) Order
Where the execution of one order automatically cancels a previous order. Commonly used when a dealer is asked to place both a Stop Loss and Limit Order in the market to buy or sell currency at predetermined exchange rates. When either order is triggered the remaining order is automatically cancelled.
-
Open market operations
Central Bank operations in the markets to influence exchange and interest rates.
-
Open position
Any deal that has not been settled by physical payment or reversed by an equal and opposite deal for the same value date.
-
OTC (Over-The-Counter)
A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange-trading floor.
-
Outright forward
A forward deal that is not part of a swap operation.
-
Outright rate
The forward rate of a foreign exchange deal based on the spot price plus/minus forward points.
-
Overheated economy
Is an economy where high-growth rates placing pressure on production capacity resulting in increased inflationary pressures and higher interest rates.
-
Overnight
A trade that remains open until the next business day.
-
Overnight trading
Refers to the buying or selling of currencies between the hours of 9.00pm and 8.00am the following day. Stop Loss and Limit Orders are commonly used for this purpose.
P
-
Pip (Tick)
Foreign exchange term representing the minimum fluctuation or smallest increment of price movement. It is a 100th part of a %, normally 10,000 of any spot rate. E.g. if the GBPUSD exchange rate is $1.5500, one pip is 0.0001.
-
Point
Foreign exchange term representing 100 Pips (see Pip (Tick) above). E.g. if the GBPUSD exchange rate is $1.5500, one point is 0.01.
-
Position
The netted total commitments in a given currency. A position can be either flat or square (no exposure), long, (more currency bought than sold), or short (more currency sold than bought).
-
Premium
In the currency market, it is the amount of pips added added/subtracted from the spot price to determine a forward exchange rate.
-
Producer Price Index (PPI)
An economic indicator which gauges the average changes on prices received by domestic producers for their output at all stages of processing.
-
Profit taking
The unwinding of a position to realise profits.
Q
R
-
Rally
A recovery in an exchange rate price after a period of decline.
-
Range
The difference between the highest and lowest price of a currency recorded during a given trading period.
-
Rate
The price of one currency in terms of another.
-
Real
A price, interest rate or statistic that has been adjusted to eliminate the effect of inflation.
-
Reserve currency
A currency held by a central bank on a permanent basis as a store of international liquidity, these are normally US Dollar, Euro and Pounds sterling.
-
Resistance level
A price level at which you would expect selling to take place and recognised by technical analysts as a price that a currency will struggle to move above, which could result in a rebound of the exchange rate. Market participants routinely use resistance levels as a guide to place automated orders such as limit orders.
-
Retail Price Index (RPI)
Measurement of the monthly change in the average level of prices at retail, normally of a defined group of goods. RPIX excludes mortgage interest payments.
-
Revaluation
Increase in the exchange rate of a currency as a result of official action.
-
Revaluation rate
The rate for any period or currency that is used to revalue a position or book.
-
Right-hand side
Taking the right hand side of a two way quote i.e. buying the quoted currency.
-
Risk
The degree of uncertainty associated with an investment.
-
Risk management
The identification and acceptance or offsetting of the risks threatening the profitability or existence of an organisation. With respect to commercial foreign exchange, correct risk management involves a thorough financial analysis of the market and client’s position and use of appropriate currency strategies.
-
Risk/Return
The relationship between the risk and return on a currency. Usually, the more risk you are prepared to take, the higher the profit or loss you can expect.
-
Rollover
Where the settlement of a deal is rolled forward to another value date based on the interest rate differential of the two currencies. E.g. next day (also called Tomorrow Next, abbreviated to Tom-Next).
-
Running a position
Keeping open positions in the hope of a speculative gain.
S
-
Same day transaction
A transaction that matures on the day the transaction takes place (Value Today).
-
Selling rate
Rate at which foreign currency is sold at.
-
Settlement
Actual physical exchange of one currency for another to complete a transaction and honour a contract.
-
Settlement date
The date by which an FX contract between two parties must be settled by the transference of funds between buyer and seller.
-
Settlement risk
Risk associated with the non-settlement of the transaction by the counter party.
-
Short
A market position where the client has sold a currency not already owned.
-
Short covering
Buying to unwind a shortage of a particular currency.
-
Singy
Market slang for Singapore Dollar.
-
Soft market
More potential sellers than buyers, which creates an environment where rapid price falls are likely.
-
Spot
The most common foreign exchange transaction. A transaction that occurs immediately with the transfer of funds to settle the contract usually taking place within two business days after the deal has been agreed. It is used when clients need to buy and sell currency and transfer it within the shortest period possible.
-
Spot next
The overnight swap from the spot date to the next business day.
-
Spot rate
The price at which the currency is currently trading in the spot market.
-
Spread
The difference between the bid and ask price of a currency.
-
Squawk box
A speaker connected to an Interbank broker room that transmits live exchange rate prices so traders know where the bids and offers lie.
-
Stable market
An active market that can absorb large volumes of currency without major moves.
-
Stagflation
Recession or low growth in conjunction with high inflation rates.
-
Sterilisation
Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market.
-
Stocky
Market slang for Swedish Krona.
-
Stop loss order
An order to buy or sell a specified amount of currency at a pre-determined exchange rate that is either above or below the rate that prevailed when the order was given. A stop loss order is a 24-hour automated order that is intended to protect the purchase or sale of a currency from adverse movements in the exchange rate. It is a popular market tool as it allows companies or individuals to firstly protect their profits and bottom line positions and secondly, enhance the value of their currency if the exchange rate rallies in their favour. Of course, as with limit orders, this can all be achieved without the need to constantly monitor exchange rates.
-
Support level
A price level at which you would expect buying to take place and is recognised by technical analysts as a price which a currency will struggle to move below, which could result in a rebound of the exchange rate.
-
Swap
The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another.
-
Swap price
A price as a differential between two dates of the swap.
-
SWIFT
Acronym for the Society for World-wide Interbank Telecommunications. A Belgian based company that provides the global electronic network for settlement of most foreign exchange transactions.
-
Swissy
Market slang for Swiss Franc.
T
-
Talking up
Statements made normally by the central bank or government ministers designed to bolster market sentiment with respect to a currency.
-
Technical analysis
Is the analysis of market action through charts, past prices and volume trends to forecast future market activity such as price and trend developments. Technical analysis provides details of Support and Resistance levels and can identify changes in currency movements.
-
Technical correction
An adjustment to price not based on market sentiment but technical factors predicted by technical analysis charting.
-
Terms of trade
The ratio between export and import price indices.
-
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.
-
Tomorrow next (Tom next)
Simultaneous buying or selling of a currency for delivery the following day and selling for the next day or vice versa.
-
Top
A term used to describe a situation where a currency has traded to the top of its range and, as a consequence of market resistance, has failed to break into a new range.
-
Tradable (market) amount
Smallest transaction amount accepted by a financial institution.
-
Trade (transaction) date
The date on which a trade occurs.
-
Trade deficit/surplus
The difference between the value of imports and exports. Often only reported in visible trade terms.
-
Transaction (deal or trade)
The buying or selling of currencies resulting from the acceptance of a price from a dealer.
-
Translation exposure
The calculation of loss or profit resulting from the valuation of foreign assets and liabilities for balance sheet purposes, when consolidating into the base currency.
-
Turnover
The total money value of currency contracts traded is calculated by multiplying size by the number of contracts traded.
-
Two-way price
When both the bid and offer rates are quoted for a foreign exchange transaction.
U
-
Unwind
Selling of assets and or instruments to square a position.
V
-
Value date
The settlement date of a spot or forward contract; the day on which the two contracting parties exchange the currencies that are being bought or sold. A spot transaction usually has a value date two business days from the deal date. However, if a bank or public holiday falls in the country(s) of the foreign currency(s) within this period, then the value date then moves forward one business day. A transaction with a value date beyond two business days would usually be considered a forward contract.
-
Visible trade
Trade in merchandise goods as compared with capital flows and invisible trade.
-
Volatility
A measure of the amount by which a currency s price is expected to fluctuate over a given period.
-
Vostro account
A local currency account maintained with a bank by another bank. The term is normally applied to the counter-party’s account from which funds may be paid into or withdrawn, as a result of a transaction.
W
-
Whipsaw
Term for where a trader takes a position, and then is stopped-out when the market initially moves against him. The market then turns and heads in the direction of the trader s original position. Normally occurs in volatile markets.
-
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.
-
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.
X
Y
Z