Futures and Forex Glossary Dictionary E3

Brick and mortar location of trading activity. Example: New York Stock Exchange.

Government controls that regulate purchase of foreign currency by resident citizens and/or foreigners buying domestic currency.

Quantity of cash commodity exchanged for matching quantity of futures. Also called exchange of spot, exchange against actuals

Price or rate at which one country’s currency can be exchanged for another country’s currency. Related Term: Basis Poi

A country’s monetary reserve funds utilized for maintaining the official exchange rates of its currency

A basket of stocks and options that can be traded within the day akin to an index mutual fund. Also called ETF

Completion of an order to buy or sell financial instruments.

Conveying of a ‘right’ under the terms of a listed options contract enabling call holders to exercise their right to buy the underlying security, and the Put holders to sell the underlying security. Related Term: Bull Call Spre

Closing a currency position. In a short position, purchase is made and in a long position sale is affected.

Thinly traded currencies which trade at low volume as opposed to major currencies. Example: Uruguay Peso.

Automated forex trading systems used in currency trading developed to be utilized on MetaTrader platforms (A product owned by Metaquotes Software Corporation)

The last day on which an option may be exercised beyond which it is invalid. Related Term: Expiration Cycle

Amount of money invested in long and short positions of a specific currency expressed as a percentage of total currency portfolio holdings. Also called Market Exposure