|
Value Date |
With respect to any contract, the applicable settlement
date specified in the confirmation that relates to the
particular contract. A Value Date must fall on a business
day in the countries of the traded currencies. |
|
Variation Margin |
An additional margin requirement that a broker will need
from a client due to market fluctuation. |
|
Volatility |
A statistical measure of a market or a security's price
movements over time, calculated by using standard
deviation. High volatility is associated with a high
degree of risk. |
|
Vostro Account |
A local currency account maintained with a bank by another
bank. The term is normally applied to the counterparty's
account from which funds may be paid into or withdrawn as
a result of a transaction. |
|
Valeur Compensee: |
Exchange rate quotation on a reciprocal basis. See
domestic quote. |
|
Value Date: |
Payments are said to be " valeur compensee" when payment
by one party in one centre and settlement by the other
party in another centre takes place on the same day. |
|
Value Spot: |
For exchange contracts it is the day on which the two
contracting parties exchange the currencies which are
being bought or sold. For complete discription see the
chapter on trading.For a spot transaction it is two
business banking days forward in the country of the bank
providing quotations which determine the spot value date.
The only exception to this general rule is the spot day in
the quoting centre coinciding with a banking holiday in
the country(ies) of the foreign currency(ies). The value
date then moves forward a day.The enquirer is the party
who must make sure that his spot day coincides with the
one applied by the respondent. The forward months maturity
must fall on the corresponding date in the relevant
calendar month. If the one month date falls on a
non-banking day in one of the centres then the operative
date would be the next business day that is common. The
adjustment of the maturity for a particular month does not
effect the other maturities that will continue to fall on
the original corresponding date if they meet the open day
requirement. If the last spot date falls on the last
business day of a month, the forward dates will match this
date by also falling due on the last business day. Also
referred to as maturity date. |
|
Value Today: |
Transaction executed for same day settlement; sometimes
also referred to as "cash transaction" |
|
Vanilla: |
A simple option whose terms and conditions do not include
any provisions other than exercise style, expiry and
strike. To compare with exotic options which have
additional terms. |
|
Variation margin: |
Profits or losses on open positions in futures and options
contracts which are paid or collected daily. |
|
Vega: |
Expresses the price change of an option for a one per cent
change in the implied volatility. |
|
Velocity of Money: |
The speed with which money circulates or turnsover in the
economy. It is calculated as the annual national income:
average money stock in the period. |
|
Vertical (bear or bull) spread: |
The sale of an option with a high exercise price and the
purchase (in the case of a bull) or the sale (in the case
of a bear ) of an option with a lower exercise price. Both
options will have the same expiration date. |
|
VDU: |
Video display unit, sometimes a computer terminal or
vendor screen. |
|
VIBOR: |
Vienna Inter-bank Offered Rate. |
|
Visible Trade: |
Trade in merchantise goods as compared with capital flows
and invisible trade. |
|
Volatility: |
A measure of the amount by which an asset price is
expected yo fluctuate over a given period. Normally
measured by the annual standard deviation of daily price
changes. (historic). Can be implied from futures pricing,
implied volatility. |
|
Vostro Account: |
A local currency account maintained with a bank by another
bank. The term is normally applied to the counterparty's
account from which funds may be paid into or withdrawn, as
a result of a transaction. |
