Futures and Forex Glossary Dictionary M1

 
M1

Money supply measurement which includes all cash and liquids in circulation, money in checking accounts and travelers checks.

M2

Money supply measurement which includes M1, money in savings accounts, money market funds and small Certificates of Deposit.

M3

Money supply measurement which includes M2 and large Certificates of Deposit.

Maintenance

A minimum margin, that the trader must have in his/hers account, set by the broker. See Also: Margin

Maintenance Margin

Maintenance Margin. The minimum margin needed to support open trades. If the minimum margin is not met, an account may be liquidated. See Also: Margin

Major Pairs

The four most commonly traded currency pairs on the forex market, referred to as the Major Pairs. The major pairs are EUR/USD, USD/JPY, GBP/USD, USD/CHF.

Make a Market

A situation where a market agent, such as a dealer or broker, is ready to buy or sell a security or currency, displaying both Bid and Ask quotes and therefore acting as a Market Maker. The market maker holds an inventory of securities and sells or buys these from its clients in order to faster facilitate trades, which can then be carried out in a matter of seconds. See Also: Market Maker

Managed Account

An investment account that is owned by an individual but managed by a professional investor. In forex, a professional trader, may manage and trade another person's forex account for a fee (fixed + cut of profits).

Managed Float

Foreign exchange rate policy where the central bank of a country frequently intervenes to steer or stabilize the currency, but the currency is still floating, i.e. the price is determined by market forces of demand and supply.

Managed Funds Association (MFA)

The organization for the managed funds industry akin to the National Futures Association.

Manual Trader

A trader who does his trades manually without the use of an API.

Margin

Margin is borrowed money used to purchase and leverage forex. Using margin a trader can leverage his/her trades many times.
Margin Account

A forex account that allows for leveraging of positions and short selling. The broker loans the trader money and takes the securities as collateral. If the value of the account falls under a certain limit, a margin call may be issued. If this is not met, then the account will be liquidated.
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