|
Maintenance Margin Requirement |
The minimum margin balance necessary to maintain the open
positions in a customer’s account. |
|
Make a market |
A dealer is said to make a market when he/she quotes bid
and offer prices at which he/she stands ready to buy and
sell. |
|
Managed float |
When the monetary authorities intervene regularly in the
market to stabilize the rates or to aim the exchange rate
in a certain direction. |
|
Margin |
The amount of cash that Delta Stock requires a customer to
deposit or maintain in the customer’s account in
connection with the customer’s trading activity. |
|
Margin Call |
A demand for the deposit of additional margin as described
in the Customer Agreement. |
|
Market Maker |
A dealer who supplies prices and is prepared to buy or
sell at those stated bid and ask prices. A market maker
runs a trading book. |
|
Market Order |
An order to buy or sell the identified currency or pairs
of currencies at the current market price. An order to buy
is executed at the ask price; an order to sell is executed
at the bid price. |
|
Market Rate/Quote |
The current quote of a currency pair. |
|
Mark-to-Market |
Process of reevaluating all open positions with the
current market prices. These new values then determine
margin requirements. |
|
Market Value |
The dollar value determined by the current foreign
exchange rates that the customer would receive if the
position were liquidated for immediate delivery in the
relevant market. |
|
Mark to Market |
The process of recalculating the value of the open
positions in a foreign currency trading account, assuming
all open positions were liquidated at current market
rates. |
|
Maturity |
The date on which payment of a financial obligation is
due. |
|
Mid-price or middle rate |
The price halfway between the two prices or the average of
both buying and selling prices offered by the market
makers. |
|
Minimum price fluctuation |
The smallest increment of market price movement possible
in a given futures contract. |
|
Momentum investor |
A market participant who increase market exposure when the
market is rising and decreases exposure or goes short when
the market is declining. |
|
M0: |
cash in circulation.Only used by the UK. |
|
M1: |
cash in circulation plus demand deposits at commercial
banks. There are variations between the precise
definitions used by national financial authorities. |
|
M2: |
Includes demand deposits time deposits and money market
mutual funds excluding large CDs. |
|
M3: |
In the UK it is M1 plus public and private sector time
deposits and sight deposits held by the public sector. |
|
M4: |
In the US it is M2 plus negotiable CDs. |
|
Maintenance margin: |
The minimum margin which an investor must keep on deposit
in a margin account at all times in respect of each open
contract. |
|
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. |
|
Make up day: |
The day when banking figures need to be compiled for
central bank reporting. |
|
Managed float: |
When the monetary authorities intervene regularly in the
market to stabilize the rates or to aim the exchange rate
in a required direction. |
|
Margin call: |
A demand for additional funds to be deposited in a margin
account to meet margin requirements because of adverse
future price movements. |
|
Margin: |
(1)Difference between the buying and selling rates, also
used to indicate the discount or premium between spot or
forward. (2)For options the sum required as collateral
from the writer of an option. (3)For futures a deposit
made to the clearing house on |
|
Marginal Risk: |
The that a customer goes bankrupt after entering into a
forward contract. In such an event the issuer must close
the commitment running the risk of having to pay the
marginal movement on the contract. |
|
Mark to market: |
The daily adjustment of an account to reflect accrued
profits and losses often required to calculate variations
of margins. |
|
Mark up: |
Premium |
|
Market amount: |
The minimum amount conventionally dealt for between banks. |
|
Market Day: |
Business day, a day when bond market is open and payments
may be made. Non market day is when market is closed. |
|
Market maker: |
A market maker is a person or firm authorized to create
and maintain a market in an instrument. |
|
Market if Touched: |
An order that becomes a market order if the specified
price is reached. |
|
Market order: |
An order to buy or sell a financial instrument immediately
at the best possible price. |
|
Marshall - Lerner: |
A model that states that if the sum of the elasticities of
demand for a country's and that of the imports exceed one,
then devaluation will have a positive effect upon the
trade balance. |
|
Marry: |
Where a dealer is able to match two customer deals which
off set one another. |
|
MAS: |
Monetary Authority of Singapore. |
|
Matched book: |
If the distribution of the maturities of a banks
liabilities equal that of its assets, it is said to be
running a matched book. |
|
Matching: |
The process of ensuring that purchases and sales in each
currency and deposits given and taken in each currency are
in balance, by amount and maturity |
|
MATIF: |
Marche a Terme International de France |
|
Maturity date: |
The last trading day of a futures contract. Date on which
a bond matures, at which time the face value will be
returned to the purchaser. Sometimes the maturity date is
not one specified date but a range of dates during which
the bond may be repaid. |
|
MIBOR: |
Madrid Inter-bank Offered Rate. |
|
Micro economics: |
The study of economic activity as it applies to individual
firms or well defined small groups of individuals or
economic sectors. |
|
Mid Office: |
The control of the trading activity including position
keeping. |
|
Mid-price or middle rate: |
The price half-way between the two prices, or the average
of both buying and selling prices offered by the market
makers. |
|
Milliard: |
European term for 1,000 million. |
|
Mine: |
Expression used to indicate that the contacting party is
willing to buy at the rate offered by the quoting bank. |
|
Minimum price fluctuation: |
The smallest increment of market price movement possible
in a given futures contract. |
|
Minimum Reserve: |
Reserves required to be deposited at central banks by
commercial banks and other financial institutions.
Sometimes referred to as Registered Reserves. |
|
Mio: |
Million. |
|
Mismatch: |
(1) A mismatch between the interest rate maturities of a
banks assets and liabilities. (2) Forward purchases differ
in the value date from the forward sales in a given
currency. |
|
MITI: |
Japanese ministry of International Trade & Industry. |
|
MM: |
Money Markets |
|
Monetarism: |
A school of economics which 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 hopefully temporary
high interest rates. |
|
Monetary Base: |
Currency in circulation plus banks' required and excess
deposits at the central bank. |
|
Monetary Easing: |
A modest loosening of monetary constraint by changing
interest rate, money supply, deposit ratios etc.. |
|
Monetary Union: |
An agreement between countries to maintain a fixed
exchange rate between their currencies. A process which
the EMS is intended to lead to, especially after the
Maastricht Treaty. |
|
Moneyness: |
The extent to which an option is in or out of the money,
expressed as a percentage of the current spot, forward or
future depending upon the nature of the underlying asset.
Positive moneyness is in the money. |
|
Money Market: |
A market consisting of financial institutions and dealers
in money or credit who wish to either borrow or lend. |
|
Money Market Operations: |
Comprises the acceptance and re-lending of deposits on the
money market. |
|
Money Stock: |
A measure of German money supply, being cash and banks'
minimum reserves on domestic liabilities (sight, statutory
notice, and time deposits). Used by the Bundesbank until
1987 as its monetary target. |
|
Money Supply: |
The amount of money in the economy, which can be measured
in a number of ways. See definitions of M0-M4. |
|
Moral Suasion: |
When monetary authorities and governments try to influence
the markets by persuasion rather than regulation or the
its threat. |
|
Most Favoured Nation (MFN): |
An undertaking to give the rate of tariff concession
offered to members of the GATT. More concessionary rates
can exist. |
|
Moving Average: |
A way of smoothing a set of data, widely used in price
time series. |
|
Multiple Exchange Rates: |
Different exchange rates for different types of
transaction. The South African Rand is an example. |
|
Mutual fund: |
An open-end investment company. Equivalent to unit trust. |
