|
Hard currency |
A currency whose value is expected to remain stable or
increase in terms of other currencies. |
|
Head and Shoulders |
A pattern in price trends which chartists consider to
indicate a price trend reversal. The price has risen for
some time, at the peak of the left shoulder; profit taking
has caused the price to drop or level out. The price then
rises steeply again to the head before more profit taking
causes the price to drop to around the same level as the
shoulder. A further modest rise or level will indicate
that a further major fall is imminent. The breach of the
neckline is the indication to sell. |
|
Hedging |
The practice of undertaking one investment activity in
order to protect against loss in another, e.g. selling
short to nullify a previous purchase or buying long to
offset a previous short sale. While hedges reduce
potential losses, they also tend to reduce potential
profits. |
|
High/Low |
Usually the highest traded price and the lowest traded
price for the underlying instrument for the current
trading day. |
|
Hit the bid |
Acceptance of purchasing at the offer or selling at the
bid. |
|
Hard currency: |
A currency whose value is expected to remain stable or
increase in terms of other currencies. |
|
Head and Shoulders: |
A pattern in price trends which chartist consider
indicates a price trend reversal. The price has risen for
some time, at the peak of the left shoulder, profit taking
has caused the price to drop or level. The price then
rises steeply again to the head before more profit taking
causes the price to drop to around the same level as the
shoulder. A further modest rise or level will indicate a
that a further major fall is imminent. The breach of the
neckline is the indication to sell. |
|
Hedge: |
The purchase or sale of options or futures contracts as a
temporary substitute for a transaction to be made at a
later date. Usually it involves opposite positions in the
cash or futures or options market. |
|
Hedge ratio: |
The number of futures or options required to hedge a given
exposure in the cash market. |
|
HEIBOR: |
Helsinki Inter-bank Offered Rate. |
|
Herstatt: |
Relates to the exposure to the counterparty to a foreign
exchange transaction defaulting which could trigger
widespread default in the market due to the netting system
of settlement. The name derives from a German bank
involved in a bank failure that resulted in default in
settling a FX transaction in the 70s.. |
|
HIBOR: |
Hong Kong Inter-bank Offered Rate. |
|
Historical volatility: |
The annualized standard deviation of percentage changes in
futures prices over a specific period. It is an indication
of past volatility in the marketplace. |
|
Hit the bid: |
Acceptance of purchasing at the offer or selling at the
bid. |
|
Holder: |
Same as buyer. |
|
Hold Account: |
Current Accounts in the UK in a currency other than
sterling. |
|
Horizontal spread: |
A calendar or time spread. |
|
Hot money: |
Short term international capital movements, motivated by
interest rate differentials or expectation of exchange
rate movements. |
|
Hots: |
In the UK treasury bills on the day of issue. |
|
Hyperinflation: |
Very high and self sustaining inflation levels. One
definition being the period while inflation exceeds 50%
until it has drops below that level for 12 months. |
