Futures and Forex Glossary Dictionary S2

 
Short Covering

Closing a short position by buying the exact same amount of a currency pair that was previously sold short.

Short Position

Selling a security. Short selling is selling a borrowed asset with the intent to buy it back at a lower price.

Short Put

Selling (writing) an option that requires the writer to sell the underlying asset at the strike price. See Also: Options

Short Squeeze

A market situation where short sellers frantically try to cover their short positions because the price rises. This creates additional pressure on the upwards movement and makes it even more difficult to close a short position.

Shout Option

An option that allows the holder to take home profit from the underlying asset but still have the opportunity to earn from future price movements. See Also: Options

Sidelined

A market situation where there is an above normal interest in a currency pair. The other currency pairs are then sidelined.

Slippage

When a trader can't get his order filled at or close to the order. This can be because of fast price movements or a slow dealer.

Society for World-wide Interbank Telecommunications

Global network of banks with headquarters in Belgium. Known for the SWIFT code.

Soft Currency

A currency that is subject to be influenced by political and economic unrest.

Soft Market

A market characterized by more sellers than buyers which can result in a quick downturn.

South African Rand (ZAR)

The currency of South Africa.

Sovereign Risk

The risk that a country will default on its debts and bonds.

Special Drawing Risk

The 'currency' of the IMF. Special Drawing Rights is an artificial currency that members can use for transactions and savings.

Speculation

Trading for profit by taking larger risks than usual.

Speculative

A trade that carries a lot more risk than normal, but also the potential for larger returns.

Spike

A sudden move in price that can be caused by erroneous data being shown.

Spot

Forex trading for immediate delivery. Spots are settled 2 days later.

Spot Market

The part of the forex market, where forex is traded for immediate delivery.

Spot Price

The price of a currency pair for immediate delivery.

Spot Trade

A forex trade for immediate delivery.

Spread

The difference in price between the Bid and Ask price.

Spreading

Simultaneously buying and selling of two related securities in the hope that it will bring a profit when the position is offset.

Square

A situation for a broker where all his deals are closed.
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