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Acceptance House |
An acceptance house “accepts” a trade bill at a specified
date in the future, meaning it pays the trade bill at a
discounted rate. |
|
Account |
The record of transactions, charges, credits and debits
with or by Delta Stock in respect of a customer’s foreign
currency transactions, which the customer now has or at
any time may have with Delta Stock. |
|
Account Balance |
The sum of all deposits, interest income and realized
gains minus all withdrawals, realized losses, and
incidental fees. |
|
Account History |
Display log of all transactions made and closed. |
|
Accrual |
The apportionment of premiums and discounts on forward
exchange transactions that relate directly to deposit swap
(interest arbitrage) deals over the period of each deal. |
|
Accrued Interest |
Interest that has been earned on a bond but not yet paid.
Typically, interest accrues on a daily basis from the
previous coupon date (inclusive) to the value date
(exclusive). An investor buying a bond must pay accrued
interest to the seller. |
|
Actuals |
The underlying assets or instruments which are traded in
the cash market. |
|
Actualize |
The underlying assets or instruments that are traded in
the cash market. |
|
ADB: |
Abbreviation for African Development Bank and the Asian
Development Bank. |
|
Accumulation / Distribution Analysis |
A technical analysis, which measures the difference
between the cumulative amount of buying pressure and the
cumulative amount of selling pressure. |
|
Adjustable Peg |
Term for an exchange rate regime where a country's
exchange rate is "pegged" (i.e. fixed) in relation to
another currency, often the US dollar or French franc, but
where the rate may be changed from time to time. This was
the basis of the Bretton Woods system. See peg and
crawling peg. |
|
Adjustment |
Official action, normally either by a change in the
internal economic policies to correct a payment imbalance
or in the official currency rate. |
|
Agent Bank |
(1) A bank acting for a foreign bank. (2) In the euro
market, the agent bank is the one appointed by the other
banks in the syndicate to handle the administration of the
loan. |
|
Aggregate Demand |
Total demand for goods and services in the economy.
Includes private and public sector demand for goods and
services within the country and the demand of consumers
and firms in other countries for good and services. |
|
Aggregate risk |
Size of exposure of a bank to a single customer for both
spot and forward contracts. |
|
Aggregate Supply |
Total supply of goods and services in the economy from
domestic sources (including imports) available to meet
aggregate demand. |
|
Agio |
Difference in the value between currencies. Also used to
describe percentage charges for conversion from paper
money into cash, or from a weak into a strong currency. |
|
AIBOR |
Amsterdam Inter-bank Offered Rate. |
|
Agreement |
The Customer Agreement, including all annexes thereto, and
all documents and authorizations executed by the customer
in connection with the maintenance of the customer’s
account (regardless of when such documents and
authorizations are executed), as amended from time to
time. |
|
Allotment Letter |
The letter sent by the issuer to person to hold bond, it
represents ownership. |
|
American Option |
An option which may be exercised at any time prior to
expiration. Compared with a European option that can only
be exercised on a specific date. |
|
Annualized |
Extrapolates the behavior of an element (such as
volatility) from a certain time period to a full year. |
|
Announcement Date |
Launch date, the date when most terms of bond are made
public, such as size and maturity. |
|
Answerback: |
Code name of a telex subscriber, printed automatically by
the telex machine. |
|
Appreciation |
A currency is said to “appreciate” when it strengthens in
price in response to market demand. |
|
Arbitrage |
The purchase or sale of an instrument and simultaneous
taking of an equal and opposite position in a related
market in order to take advantage of small price
differentials between markets. |
|
Arbitrage channel |
The range of prices within which there will be no
possibility to arbitrate between the cash and futures
market. |
|
Arcru |
A unit of account based on the movement of 12 Arab
currencies against the US dollar. |
|
Around |
Dealer jargon used in quoting when the forward
premium/discount is near parity. For example, “two-two
around” would translate into two points to either side of
the present spot. |
|
Article 8 Currency: |
A senior currency in IMF terminology, which should be
freely convertible. |
|
As you like option: |
Enables the holder to convert from one style of option to
a different style of option over a preset period of time.
Sometimes referred to as either a "call-or-put option" or
"chooser option". |
|
Asian Monetary Unit: |
An accounting unit for the Asian Clearing Union with the
same value as an SDR. |
|
Asset Allocation |
Investment practice that divides funds among different
markets to achieve diversification for risk management
purposes and/or expected returns consistent with an
investor’s objectives. |
|
Ask (Offer) Price |
Ask is the market selling price, the price at which Delta
Stock or the market is prepared to sell a specified
currency in a foreign exchange contract or cross currency
contract. At this price, the trader can buy the base
currency. In the quotation, it is shown on the right side
of the quotation. |
|
Ask - |
The price at which the currency or instrument is offered. |
|
Asset: |
In the context of foreign exchange is the right to receive
from a counterparty an amount of currency either in
respect of a balance sheet asset (eg a loan) or at a
specified future date in respect of an unmatched forward
Forward or spot deal. |
|
Assignment: |
Notice to an option holder, usually by the clearing house
of an exchange traded option that the option has been
exercised. |
|
Association Cambiste Internationale: |
The international society of foreign exchange dealers
consisting of national "Forex clubs" affiliated on a world
wide basis. |
|
ATHIBOR: |
Athens Inter-bank Offered Rate. |
|
Au Jour le Jour: |
The rate for money lent from day to day on the French
money market. |
|
Auction: |
Sale of an item to the highest bidder. (1) A method
commonly used in exchange control regimes for the
allocation of foreign exchange. (2) A method for
allocating government paper, such as US Treasury Bills.
Small investors are given preferential access to the
bills. The average issuing price is then computed on the
basis of the competitive bids accepted. In some
circumstances for government auctions it is the yield
rather than the price which is bid. |
|
Automated Clearing House: |
A US term for an organisation set up by financial
institutions agreeing to initiate and receive among
themselves electronic transfers of funds authorised by
their customers. |
|
Automatic exercise: |
A procedure for exchange traded options under which the in
the money options are exercised on a given date. |
|
Average life: |
The arithmetic weighted average life of a bond where the
weights are the proportion of the principal amount being
redeemed. |
|
Average Rate Option: |
A contract where the exercise price is based on the
difference between the strike price and the average spot
rate over the contract period. Sometimes called an "Asian
option" |
|
At best |
An instruction given to a dealer to buy or sell at the
best rate that can be obtained. |
|
At or Better |
An order to deal at a specific rate or better. |
|
At-the-money |
In options, when the strike price equals the price of the
underlying contract |
|
Authorized dealer |
A financial institution or bank authorized to deal in
foreign exchange. |
