Futures and Forex Glossary Dictionary P2

 
Point & Figure Chart

A type of chart that does not show the passage of time, but rather shows rising and falling prices as either circles or crosses. This type of chart is used to determine critical support and resistance levels.

Political Risk

Larger changes in a country's or region's politic situation, such as government changes or unrest that may negatively affect the economy.

Position

A trade in the market that is still open.

Position Limit

A limit set on specific securities by regulatory bodies to maintain a fair market.

Position Trader

Long term trader that may hold positions for weeks, months even years

Pound Sterling (GBP)

The British pound (GBP). One British pound is made up of 100 pence.

Prearranged Trading

Trading between brokers or banks where there is an agreement to do so already. Prearranged trading is illegal because it violates the idea of a fair and free market.

Premium

The price a seller gets from selling an option.

Premium Spread

A situation where the bid price is higher than the ask price for a forward spread rate.

Pre-settlement Risk

The risk of default before settlement when entering into a financial contract.

Price

The cost of purchasing a currency with another currency.

Price Discovery

The process by which commodities are priced using the open outcry auction method on a commodity exchange. See Also: Open Outcry
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