Futures and Forex Glossary Dictionary I1

A currency that cannot be exchanged to another currency on account of foreign exchange regulations. Example: Currency of a country that depreciates drastically on account of hyperinflation.

NYSE affiliated member who executes orders for floor brokers and others apart from his own.

Currency of the Republic of India. Related Term: Currency

Market maker’s quote to a trader, when a trader requests a quote for a currency pair without specifying quantity or when the market maker is not sure of transacting the currency pair at the bid and ask quoted

The amount of foreign currency needed to buy 1 unit of local currency. Example: An indirect quote for Canadian dollar in the US would be C$ 1.0749 = US$1

The rate of price rise for goods and services.

Measure of unemployed persons seeking state doles. Higher claims corroborate a weakening economy and vice versa.

Quantum of cash needed in a currency trading account with a forex broker to facilitate margin transaction.

Margin requirements set by individual forex brokerage firms that specify the percentage of the purchase price of the currency that the trader must pay with his/her own cash in conformity with regulation T of the Federal Reserve Board stipulation of a minimum initial margin of 50%.

The exchange of currencies between and amongst banks and financial institution but excluding retail investors.

Currency positions opened and closed on the same trading day.

Another word for Interbank Market.

The effective monthly interest rates on currencies in a Forex trading account