Futures and Forex Glossary Dictionary D3

 
Discretionary Account Forex

Currency trading account in the name of an individual or entity controlled and operated by a designated person other than the owner of the said account. Also called managed account.

Discretionary Account Future

An options or futures trading account operated by a broker on behalf of the client subsequent to a discretionary disclosure agreement entered between the client and broker. Also called Managed account.

Diversified Carry Basket

To limit losses in any one specific carry trade position, by distributing entire basket of carry trade position amongst different carry currencies and funding currencies.

Dollar Drain

Situation when a country imports more than what it is exporting. Increase in imports removes dollars from the importing country. Related Term: Balance of Payments (BOP)

Dollars Hegemony

The emergence of the dollar as the primary reserve currency throughout the world.

Dollar Rate

Equivalent foreign currency for 1 US Dollar.

Dollar-Cost Averaging

Regular purchase of a fixed dollar amount of a specific security irrespective of price.

Domestic Fischer Effect

Relationship between inflation and interest rates in a country with increase in inflation leading to increase in interest rate and vice versa. Related Term: Consumer Price Index (CPI)

Domestic Rates

Interest rates for foreign currency loans and deposits within a particular country.

Done

An agreement reached for a specific contract.

Drawdown

Reduction in account equity from one single trade or series of trades expressed as percentage between the peak value and the trough value. Related Term: Calmar Ratio

Dual Currency Deposit

A fixed deposit which facilitates repayment of the deposit at maturity either in the currency of initial deposit or in another currency. Example: Eurobonds that pay coupon interest in one currency and principal in another currency.

Dual Exchange Rate

Simultaneous existence of a fixed exchange rate for a currency, and an illegal market-determined parallel exchange rate.

Dual Trading (Futures)

Options and futures trader simultaneously handling their own trading account and an investor’s trading account.

Durable Goods Order

Changes in the level of sales of products with a life-span of 3 years or more as denominated by an economic indicator.

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