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Forex Terms Flashcards

(121 cards)

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1
Q

barrier option

A

A type of option whose payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price. A barrier option can be a knock-out, meaning it can expire worthless if the underlying exceeds a certain price, limiting profits for the holder but limiting losses for the writer. It can also be knock-in, meaning it has no value until the underlying reaches a certain price.

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2
Q

BBA

A

British Banker’s Association

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3
Q

bear

A

Someone who things that a particular asset or market will decrease in price

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4
Q

BID

A

A buy order placed at or below the market; Price a dealer/trader is prepared to pay

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5
Q

Bid/Offer Spread

A

The difference between the bid price and the offer (sale) price

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6
Q

Bio

A

Billion

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7
Q

BIS

A

Bank of International Settlements. An international organization which fosters monetary and financial cooperation and serves as a bank for central banks. Often as agent in the forex market

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8
Q

bnp

A

BNP Paribas

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9
Q

Bobl

A

Medium-term debt Instrument issued by Germany (4.5 to 5.5 years)

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10
Q

BOC

A

Bank of Canada

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11
Q

Boe, BOE

A

Bank of England. The UK analogue to the US Federal Reserve.

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12
Q

BOJ

A

Bank of Japan. The Japanese analogue to the US Federal Reserve.

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13
Q

bounce

A

Upward price movement after a decline

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14
Q

Bps, pips

A

Basis POints

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15
Q

btmu

A

Bank of Tokyo Mitsubishi UFJ

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16
Q

BTPs

A

Italian government bonds

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17
Q

buba

A

Bundesbank - German Federal Reserve Bank

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18
Q

bucket

A

Refers to the grouped timing of particular cash flow or derivative or price at a particular time, e.g. July Bucket

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19
Q

bull

A

Someone who thinks that a particular asset or market will increase in proce

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20
Q

Bund’s

A

Long-term debt instrument issued by Germany (8.5 to 10.5 years). German 10-year government bonds. The Bobl is the 5 year and Schatz the 2-year

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21
Q

Butterflies (butterfly spread)

A

The butterfly strategy is a known strategy used in forex, which can be implemented while using both call or put options. Trading strategy where a trader is buying at price A and C whilst selling an appropriately weighted amount at price B where price B is between price A and C (or selling at A-C and buying at B)

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22
Q

Cable, cbl

A

GBP/USD. GPB/USD Exchange rate; also refers to GBP generally.

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23
Q

CAC

A

The french stock index, the CAC 40

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24
Q

cad

A

Canadian Dollar

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25
Call option, call
The right (but not the obligation) to buy an underlying asset from the counterparty at a fixed price
26
Candle.Candlestick
Tools for charting movement in FX. For instance, you can have bullish and bearish candlesticks
27
carry
Returns realized from an asset minus the cost of the holding asset
28
chf, francs, swiss, swissies, sfr
Swiss franc
29
Commercial Paper, cp
An unsecured, short-term money market security sold by banks and other corporations to raise funds.
30
Condor
A four-part option strategy using calls and puts
31
copper
Futures contracts which settle on IMM dates ten years from the date quoted
32
Corporates
The finance and treasury departments of large multinational corporations that typically contract with big wirehouse providers like UBS in FX. They must hedge their currency exposures to try and offset currency risk.
33
cosmo
cosmorex, swiss broker
34
Cost of carry
The cost of carrying or holding a position less any income received on the asset would be used interchangeably with carry where carry is negative.
35
Counterparty
The other party to trade or contract
36
cp
commercial paper
37
Cross surrency swap
An interest rate swap where the payment legs are made in two different currencies
38
cs
Credit Suisse
39
Currency Swap
A present exchange of one currency for equal value in a different currency; see also FOREX
40
Curve: Flatten, steepen, invent
The graph showing future price projected at present time. These are typically built by each trader using a variety of sources of information to asset them in pricing their trades. Slopes up less steeply, slopes up more steeply, slopes down
41
Custody Bank / Custodian
A bank which holds securities in custody for other financial institutions. For instance, Bank of New York Mellon and State Street.
42
DAX
German stock index
43
Deferred Swap
Agreement to enter into a swap at some time in the future (also a forward swap)
44
Delta
The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the "hedge ration"
45
Depo
Deposit. Deposit rate offered on particular currency
46
dkk
Danish Krone
47
Dove
Proponent of lower rates
48
Dovish
A statement related to monetary policy which implies looser policy (lower rates)
49
Easy (easing)
Refers to monetary policy trending towards lower interest rates. Monetary authorities ( a central bank) will want easy monetary policies (lower interest rates and even perhaps a program like quantities easing, in order to encourage economic growth)
50
ebf
European banking federation
51
EBS
Electronic Broking Services. A wholesale electronic trading platform used to trade between interbank dealers, It's like an ECN for banks.
52
ECB
Eurpoean Centeral Bank. The Euro analogue to the US federal Reserve
53
Ecofin
A council consisting of the economy and finace ministers of the EU. They meet once a month.
54
Ed/ed
Euro dollars
55
eonia
Euro OverNight Index Average
56
ESFS
European Financial Stability Facility. A legal instrument agreed by the 27 member states of the EU on May,, 9, 2012, aiming at preserving finiancial stability in Europe by providing finacial assitance to euro zone states in difficulty. Colloquially known as 'euro SPV' or 'euro TARP'
57
ETF
Exchange Traded Fund
58
Euro
Euro
59
Eurodollar
A Eurodallar refers to a US dollar on deposit at banks outside the US. Similaryl
60
Eurodlaar, ED, eu$, e$, eurused, edollar
Any US dollar on deposit in Europe.
61
Eurogroup
A group of finance ministers of countries who are members of the euro
62
Euroyen, eurjpy
Any yen on deposit in Europe (not to be confused with EUR/JPY currency swp)
63
Fade
To trade counter to
64
Fed
Ferderal Reseerve. The central bank for the US
65
Fibonacci Level
A preice deermined by charting techniques which some traders regard as particularly significant
66
Fibonacci retracements
A useful tool for traders as markets correct during trends. Technicians look for supprt on pullbacks at 38.2% of the uptrend or rebounds in a downtredn, 50% and 61.8%. Dervied from the "golden ratio" of Ialian mathematician Fibonacci
67
Fix or Fixing
The official market rate set for a currency pair or the ecexution date of a currency trade.
68
Flatten, steepen, Invent
?
69
FOMC
Federal OPen Market Committee
70
Footsie or FTSE
UK Stock index. ie FTSE 100
71
FOREX, fx
Foriegn Exchange. The cheif open market of currency swaps, highly liquid and pegged at nearly $4 trillion in volume
72
Forward Guidance
Forward guidance is a central bank suggesting monetary policy they intend to implement prior to execution.
73
Forward Swap
See deferred swap
74
FRA
Forward rate agreement. BIlateral contract to make a cash settlement payment based on the difference between a fxed interest rate for a single future period and the actual market rate set for that period.
75
4 bells
4:00 pm fixing
76
8AMERS
Traders who start working around 8am
77
AAA
Asian Centeral Bank
78
ADP
Private-sector employment report
79
AGG
An electronic trading platform [?] OR internal UBS system [?]
80
Aussie
AUD/USD (Australian Dollar to US Dollar exchange rate)
81
B9yer
possibly a code word
82
Back Book
See prop book
83
Bail
To sell
84
Barney
USD/RUB
85
Barrier Order
Trading orders placed by the FX options desk with the FX spot desk in order to prevent a currency pair from reaching the options strike price.
86
BBIL
Barclays Capital
87
Bells
Fixing. for example, 4 bells refers to the 4pm fixing
88
Betty
EUR/RUB or GBP/USD
89
Bgt
BOught
90
Bid
Price at which a party is willing to buy
91
Big B
BNP Paribas
92
Big Figure
The second decimal point. Exchange rates are generally quoted to four or five decimal points. All but the most significant or long term movements in price are refelcted in fluctuations in the third and fourth decimal points, so the Big Figure is a significant number, opten understood (and therefore unspoken) by traders in the parket. In an exchange rate of 1.3265, 2 is this big figure.
93
Big Run Up
See Bob Willis
94
Blx
Bollocks
95
Bob Willis
Euphmism for a big rum up to the fixing, meaning a rtrader or bank executes a seried of trades (usually in the hour or half prior to the fixing, rather than just within the 1 minute fixing window) to create momentum in the market for a price movembent in one direction or another to suit their trading positions. Named for an English Cricket player who took a notably long run up when bowling.
96
Break
When the market hits support or resistance levels
97
Bull/Bully
50 million
98
Carry
Returns from holding an asset (less costs)
99
Cable
GBP/USD
100
Charity Trade
See wash trade
101
Chase
JP Morgan
102
Cheese
USD/CHF or profit
103
250 mio
Chop...See stop.
104
Chunnel
EUR/GBP
105
Clr
Clear, possibly nuetral or flat
106
CME
Chicago Mercantile Exchange
107
Comp
Compensation OR dompetition ot in comparisson
108
Corp
Corporate referring to large corporations that transact in the market and through banks
109
Cross
Cross currency
110
CS
Credit Suisse
111
Deuce/Duece
Flat (nuetral or fully matched out positon - see matched( OR a volume indication
112
Dogeater
A code word used to refer to the Korean Central Bank
113
Dorrar
USD/JPY
114
Drive-by
An unexpectedand concerted burst of trading activity (sometimes inmplying an ambush on the market by a trader)
115
Dump
Sell
116
EBS
Electronic brokering Sustem - an electronic trading platform on which traders can concludetrades directly with counterparies on an anonymous instantaneous basis.
117
ECB
European Central BAnk. Also refers to the ECB fixing
118
E-Comm
E-Commerence trading and payment tool
119
EFP
Euro Dollar
120
EUR/USD
fiBER
121
Fixing Trades
Orders by clients for FX spot trades ata particular fixing rate

Forex Terms (1 decks)

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