Forex Glossary

The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (interest arbitrage) deals, over the period of each deal.

• Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate. 
• Accommodation/ accommodative
• Another way of referring to easy or easier monetary policy, often used as a code word by central bankers

• Traders and/or price action are acting with conviction. 
• All Ordinaries
• An Australian stock inde

Extrapolates the behavior of an element (such as volatility) from a certain time period to a full year.

A financial professional who has expertise in evaluating investments and puts together buy, sell and hold recommendations for clients.

Asset Purchase Program: It’s not just something you find on your phone, it’s a BOJ initiative introduced in 2010 as a monetary easing tool where it buys government bonds with up to three years until maturity (and also corporate debt, ETFs and REITs) and trust funds investing in stocks and property.

A product is said to 'appreciate' when it strengthens in price in response to market demand.

The simultaneous purchase or sale of a financial product in order to take advantage of small price differentials between markets.

Refers to the central banks or monetary authorities of Asian countries. These institutions have been increasingly active in major currencies as they manage growing pools of foreign currency reserves arising from trade surpluses. Their market interest can be substantial and influence currency direction in the short-term.

23:00 – 08:00 (Tokyo).

• The price at which the market is prepared to sell a product. Prices are quoted two-way as Bid/Ask. The Ask price is also known as the Offer. In FX trading, the Ask represents the price at which a trader can buy the base currency, shown to the right in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the Ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs. 
• In CFD trading, the Ask also represents the price at which a trader can buy the product. For example, in the quote for UK OIL 111.13/111.16, the product quoted is UK OIL and the Ask price is £111.16 for one unit of the underlying market.* 
• ASX 200
• A name for the Australian Securities Exchange (ASX 200) which is an index of the top 200 companies (by market capitalization) listed on the Australian stock exchange.

An instruction given to a dealer to buy or sell at the best rate that can be obtained.

An order to deal for a specific price or better.

Also, "Oz" or "Ozzie"; refers to the AUD/USD pair.

• The value of a country's exports minus its imports.
• Bank for International Settlements (BIS)
• An international organization which fosters monetary and financial cooperation and serves as a bank for central banks. The BIS often acts as an agent in the forex market, allowing central banks to mask their identity in an attempt to dampen market impact.

A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar, the opening price, which is marked with a little horizontal line to the left of the bar and the closing price, which is marked with a little horizontal line to the right of the bar.

A certain price of great importance included in the structure of a Barrier Option. If a Barrier Level price is reached, the terms of a specific Barrier Option call for a series of events to occur.

Any number of different option structures (such as knock-in, knock-out, no touch, double-no-touch-DNT) that attaches great importance to a specific price trading. In a no-touch barrier, a large defined payout is awarded to the buyer of the option by the seller if the strike price is not 'touched' before expiry. This creates an incentive for the option seller to drive prices through the strike level and creates an incentive for the option buyer to defend the strike level.

The first currency in a currency pair. It shows how much the base currency is worth as measured against the second currency. For example, if the USD/CHF rate equals 1.6215 then one USD is worth CHF 1.6215. In the FX market, the US Dollar is normally considered the 'base' currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar.

The lending rate of the central bank of a given country.

A method used in technical analysis – a chart pattern that shows when demand and supply of a product are almost equal. It results in a narrow trading range and the merging of support and resistance levels.

A unit of measurement used to describe the minimum change in the price of a product.

Negative for price direction; favoring a declining market. For example, "We are bearish EUR/USD" means that we think the Euro will weaken against the dollar.

Traders who expect prices to decline and may be holding short positions. 

The price at which the market is prepared to buy a product. Prices are quoted two-way as Bid/Ask.

The difference between the Bid and the Ask (Offer) price. 

Refers to the first 3 digits of a currency quote, such as 117 USD/JPY or 1.26 in EUR/USD. If the price moves by 1.5 big figures, it has moved 150 pips. 

The Bank for International Settlements located in Basel, Switzerland, is the central bank for central banks. The BIS frequently acts as the market intermediary between national central banks and the market. The BIS has become increasingly active as central banks have increased their currency reserve management. When the BIS is reported to be buying or selling at a level, it is usually for a central bank and thus the amounts can be large. The BIS is used to avoid markets mistaking buying or selling interest for official government intervention. 

The term used for systematic, model-based or technical traders. 

The upside equivalent of capitulation. When shorts throw in the towel and cover any remaining short positions. 

Bank of Canada, the central bank of Canada. 

Bank of England, the central bank of the UK. 

Bank of Japan, the central bank of Japan. 

A tool used by technical analysts. A band plotted two standard deviations on either side of a simple moving average, which often indicates support and resistance levels. 

A name for debt which is issued for a specified period of time. 

• In a professional trading environment, a 'book' is the summary of a trader's or desk's total positions.
•  BTPs
• Italian government bonds
• British Retail Consortium (BRC) shop price index
• A British measure of the rate of inflation at various surveyed retailers. This index only looks at price changes in goods purchased in retail outlets. 

An individual or firm that acts as an intermediary, bringing buyers and sellers together for a fee or commission. In contrast, a 'dealer' commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. 

Market slang for 1 million units of a dollar-based currency pair or for the US dollar in general. 

Favoring a strengthening market and rising prices. For example, "We are bullish EUR/USD” means that we think the Euro will strengthen against the dollar. 

• Traders who expect prices to rise and who may be holding long positions. 
• Bunds
• German 10-year government bonds. The Bobl is the 5 year and Schatz the 2-year.
• Bundesbank
• Germany's central bank. 

Taking a long position on a product. 

• Looking to buy 20-30-pip/point pullbacks in the course of an intra-day trend.
• Cable
• The GBP/USD pair. ”Cable” earned its nickname because the rate was originally transmitted to the US via a transatlantic cable beginning in the mid 1800's when the GBP was the currency of international trade. 

The Canadian dollar, also known as Loonie or Funds. 

A currency trade which exploits the interest rate difference between two countries. By selling a currency with a low rate of interest and buying a currency with a high rate of interest, the trader will receive the interest difference between the two countries while this trade is open. 

A monthly gauge of Canadian business sentiment issued by the Richard Ivey Business School. 

A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded. 

A point at the end of an extreme trend when traders who are holding losing positions exit those positions. This usually signals that the expected reversal is just around the corner. 

A trade strategy that captures the difference in the interest rates earned from being long a currency that pays a relatively high interest rate and short another currency that pays a lower interest rate. For example: NZD/JPY has been a famous carry trade for some time. NZD is the high yielder and JPY is the low yielder. Traders looking to take advantage of this interest rate differential would buy NZD and sell JPY, or be long NZD/JPY. When NZD/JPY begins to downtrend for an extended period of time, most likely due to a change in interest rates, the carry trade is said to be ‘unwinding’. 

The market in the actual underlying markets on which a derivatives contract is based. 

The price of a product for instant delivery; i.e. the price of a product at that moment in time. 

Abbreviation referring to central banks. 

A government or quasi-governmental organization that manages a country's monetary policy. For example, the US central bank is the Federal Reserve and the German central bank is the Bundesbank. 

A Contract for Difference (or CFD) is a type of derivative that gives exposure to the change in value of an underlying asset (such as an index or equity). It allows traders to leverage their capital (by trading notional amounts far higher than the money in their account) and provides all the benefits of trading securities, without actually owning the product. In practical terms, if you buy a CFD at $10 then sell it at $11, you will receive the $1 difference. Conversely, if you went short on the trade and sold at $10 before buying back at $11, you would pay the $1 difference. 

An individual, also known as a technical trader, who uses charts and graphs and interprets historical data to find trends and predict future movements. 

Short-lived price moves with limited follow-through that are not conducive to aggressive trading. 

Funds that are freely available, sent in to settle a trade. 

The process of settling a trade. 

Exposure to a financial contract, such as currency, that no longer exists. A position is closed by placing an equal and opposite deal to offset the open position. Once closed, a position is ‘squared’. 

The process of stopping (closing) a live trade by executing a trade that is the exact opposite of the open trade. 

The price at which a product was traded to close a position. It can also refer to the price of the last transaction in a day trading session. 

An asset given to secure a loan or as a guarantee of performance. 

A fee that is charged for buying or selling a product. 

Currencies from economies whose exports are heavily based in natural resources, often specifically referring to Canada, New Zealand, Australia and Russia. 

The dollar pairs that make up the crosses (i.e. EUR/USD + USD/JPY are the components of EUR/JPY). Selling the cross through the components refers to selling the dollar pairs in alternating fashion to create a cross position. 

Symbol for NASDAQ Composite Index. 

A document exchanged by counterparts to a transaction that states the terms of said transaction. 

A period of range-bound activity after an extended price move. 

Measures the amount of spending towards new construction, released monthly by the U.S. Department of Commerce's Census Bureau. 

The tendency of an economic crisis to spread from one market to another. 

The standard unit of forex trading. 

A confirmation sent that outlines the exact details of the trade. 

The notional number of shares one CFD represents. 

A position which has a limited risk because of a Guaranteed Stop.* 

A technical observation that describes moving averages of different periods moving towards each other, which generally forecasts a price consolidation. 

An event that changes the equity structure (and usually share price) of a stock. For example, acquisitions, dividends, mergers, splits and spinoffs are all corporate actions. 

Refers to corporations in the market for hedging or financial management purposes. Corporates are not always as price-sensitive as speculative funds and their interest can be very long-term in nature, making corporate interest less valuable to short-term trading. 

The second listed currency in a currency pair. 

One of the participants in a financial transaction. 

Risk associated with a cross-border transaction, including but not limited to legal and political conditions. 

A measure of inflation – short for Consumer Price Index. 

The market is ready to sell-off hard. 

A pair of currencies that does not include the US Dollar. 

Refers to CAD (Canadian Dollar), Aussie (Australian Dollar), Sterling (British Pound) and Kiwi (New Zealand Dollar) – countries off the Commonwealth. 

Refers to commodity trading advisors, speculative traders whose activity can resemble that of short-term hedge funds; frequently refers to the Chicago-based or futures-oriented traders. 

• Any form of money issued by a government or central bank and used as legal tender and a basis for trade. 
• Custody Bank
• A bank which holds securities in custody for other financial institutions, does their bookkeeping and settles their trading activity. Examples include Bank of New York Mellon, State Street and Northern Trust Co. Also know as custodians.
• Currency pair
• The two currencies that make up a foreign exchange rate, for example EUR/USD. 

The probability of an adverse change in exchange rates. 

A three-letter symbol that represents a specific currency, for example USD (US Dollar). 

• The sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid). The balance of trade is typically the key component to the current account.
• Day trader
• Speculators who take positions in commodities and then liquidate those positions prior to the close of the same trading day. 

• Making an open and close trade in the same product in one day. 
• DAX
• German stock index, the DAX 30
• Deal
• A term that denotes a trade done at the current market price. It is a live trade as opposed to an order. 

An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. 

The difference between the buying and selling price of a contract. 

Action taken by a trader, or group of traders, to prevent a product from trading at a certain price or price zone, usually because they hold a vested interest in doing so, such as a barrier option. 

A negative balance of trade or payments. 

Removing a stock’s listing on an exchange. 

• A trade where both sides make and take actual delivery of the product traded. 
• Delta
• The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the “hedge ratio”.
• Delta
• The ratio between the change in price of a product and the change in price of its underlying market. 

A monthly survey produced by the DCLG that uses a very large sample of all completed house sales to measure the price trends in the UK real estate market. 

The decrease in value of an asset over time. 

A financial contract whose value is based on the value of an underlying asset. Some of the most common underlying assets for derivative contracts are indices, equities, commodities and currencies. 

When a pegged currency is allowed to weaken or depreciate based on official actions; the opposite of a revaluation. 

Interest rate that an eligible depository institution is charged to borrow short-term funds directly from the Federal Reserve Bank. 

In technical analysis, a situation where price and momentum move in opposite directions, such as prices rising while momentum is falling. Divergence is considered either positive (bullish) or negative (bearish); both kinds of divergence signal major shifts in price direction. Positive/bullish divergence occurs when the price of a security makes a new low while the momentum indicator starts to climb upward. Negative/bearish divergence happens when the price of the security makes a new high, but the indicator fails to do the same and instead moves lower. Divergences frequently occur in extended price moves and frequently resolve with the price reversing direction to follow the momentum indicator. 

A technical observation that describes moving averages of different periods moving away from each other, which generally forecasts a price trend. 

The amount of a company’s earning distributed to its shareholders – usually described as a value per share. 

• Abbreviation for the Dow Jones Industrial Average or US30. 
• Dollar rate
• The exchange rate of a foreign currency as quoted against the US dollar (USD). Some currencies are typically only quoted against the US dollar, such as the Algerian dinar (DZD) and the Andorran franc (ADF). The exchange rate of the Algerian dinar against the Andorran franc is thus computed from DZD-USD and ADF-USD.

Dovish refers to data or a policy view that suggests easier monetary policy or lower interest rates. The opposite of hawkish. 

Price action consisting of lower-lows and lower-highs. 

• Symbol for US Dollar Index.
• Easy (easing)
• Refers to monetary policy tending towards lower interest rates. Monetary authorities (a central bank) will want easy monetary policies (lower interest rates and even perhaps a program like quantitative easing, in order to encourage economic growth).
• ECB
• European Central Bank, the central bank for the countries using the Euro.
• Ecofin
• A council consisting of the economy and finance ministers of the European Union. They meet once a month.

• A government-issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc. 
• Emergency Liquidity Assistance (ELA)
• The provision of liquidity by member national banks of the European System of Central Banks (Eurosystem) to individual banks. The provision of liquidity is made under exceptional circumstances to illiquid institutions unable to obtain liquidity either in the market or from participation in monetary policy operations (shut out by the ECB). Loans are made against collateral and are at the risk of the national central bank.
• End of day order (EOD)
• An order to buy or sell at a specified price that remains open until the end of the trading day, typically at 5pm / 17:00 New York. 

The time zone of New York City, which stands for United States Eastern Standard Time/Eastern Daylight time. 

A name for the Euronext 50 index. 

• The currency of the Eurozone. 
• EuroDollar
• Not the Euro; a pet peeve of many old FX traders is to hear the euro currency referred to as ‘eurodollar’. A eurodollar refers to a US dollar on deposit at banks outside the US. Similarly, eurodollar futures are a very popular interest-rate futures contract.
• Eurogroup
• A group of finance ministers of countries who are members of the euro. It’s spokesman is Jean-Claude Junckers, the finance minister of Luxembourg.
• ETF
• An Exchange Traded Fund (the BOJ has bought ETFs as part of its APP easing program).
• European Monetary Union (EMU)
• An umbrella name for the group of policies that aims to coordinate economic and fiscal policies across EU Member States. 
• European Financial Stability Facility (ESFS)
• Is a legal instrument agreed by the 27 member states of the European Union on 9 May 2010, aiming at preserving financial stability in Europe by providing financial assistance to eurozone states in difficulty. Colloquially known as ‘euro SPV’ or ‘euro TARP’.

07:00 – 16:00 (London). 

Measures the annualized rate of inflation in the compensation and benefits paid to civilian workers and is seen as a primary driver of overall inflation. 

A monthly index produced by the OECD. It measures overall economic health by combining ten leading indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices and interest rate spreads. 

A share bought where the buyer forgoes the right to receive the next dividend and instead it is given to the seller. 

The precise date and time when an option will expire. The two most common option expiries are 10:00am ET (also referred to as 10:00 NY time or NY cut) and 3:00pm Tokyo time (also referred to as 15:00 Tokyo time or Tokyo cut). These time periods frequently see an increase in activity as option hedges unwind in the spot market. 

Corporations who sell goods internationally, which in turn makes them sellers of foreign currency and buyers of their domestic currency. Frequently refers to major Japanese corporations such as Sony and Toyota, who will be natural sellers of USD/JPY, exchanging dollars received from commercial sales abroad. 

• A market that is thought to have traveled too far, too fast.
• Fade
• To trade counter to. For instance, to “fade a trend” is to counter the trend. To fade a rumor is to believe it to be untrue and do the opposite of what the rumor would suggest.
• Factory orders
• The dollar level of new orders for both durable and nondurable goods. This report is more in depth than the durable goods report which is released earlier in the month. 

The difference between the price of a derivative contract and the underlying cash market price. Fair value means there are no arbitrage opportunities between the two prices. 

The Federal Reserve Bank, the central bank of the United States, or the FOMC (Federal Open Market Committee), the policy-setting committee of the Federal Reserve. 

• Refers to members of the Board of Governors of the Federal Reserve or regional Federal Reserve Bank Presidents. 
• Fibonacci retracements
• A useful tool for traders as markets correct during trends. Technicians look for support on pullbacks at 38.2% of the uptrend or rebounds in an downtrend, 50% and 61.8%. Derived from the “golden ratio” of Italian mathematician Fibonacci.
• Figure / The figure 
• Refers to the price quotation of '00' in a price such as 00-03 (1.2600-03) and would be read as 'figure-three.' If someone sells at 1.2600, traders would say 'the figure was given' or 'the figure was hit.' 

When an order has been fully executed. 

An order that, if it cannot be filled in its entirety, will be cancelled. 

All positions opened within a particular currency pair are liquidated in the order in which they were originally opened. 

• One of approximately 5 times during the FX trading day when a large amount of currency must be bought or sold to fill a commercial customer’s orders. Typically these times are associated with market volatility. The regular fixes are as follows (all times NY): 
• 5:00am - Frankfurt
• 6:00am - London
• 10:00am - WMHCO (World Market House Company)
• 11:00am - WMHCO (World Market House Company) - more important
• 8:20am - IMM
• 8:15am - ECB

Economic data readings matching the previous period's levels that are unchanged. 

Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 and then sold $500,000, thereby creating a neutral (flat) position. 

Fresh buying or selling interest after a directional break of a particular price level. The lack of follow-through usually indicates a directional move will not be sustained and may reverse. 

• Federal Open Market Committee, the policy-setting committee of the US Federal Reserve. 
• FOMC
• Federal Open Market Committee, the monetary policy-setting group within the Federal Reserve Bank of the USA. It consists of 12 members, the seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank presidents 9selected on a rotating basis for one-year terms).

Written record of FOMC policy-setting meetings are released 3 weeks following a meeting. The minutes provide more insight into the FOMC's deliberations and can generate significant market reactions. 

The simultaneous buying of one currency and selling of another. The global market for such transactions is referred to as the “forex” or “FX” market. 

• The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved. 
• Forward guidance
• Forward guidance can take many forms, but, in essence all of them involve a central bank saying, or at least hinting at, what its going to do with monetary policy do before they do it. 

• The pips added to or subtracted from the current exchange rate to calculate a forward price.
•  Footsie
• UK stock index, the FTSE100

A name for the index of the top 40 companies (by market capitalization) listed on the French stock exchange. FRA40 is also known as CAC 40. 

The name of the UK 100 Index. 

The assessment of all information available on a tradable product to determine its future outlook and therefore predict where the price is heading. Often non-measurable and subjective assessments, as well as quantifiable measurements, are made in fundamental analysis. 

Refers to hedge fund types active in the market; also used as another term for USD/CAD pair. 

An agreement between two parties to execute a transaction at a specified time in the future when the price is agreed in the present. 

• An obligation to exchange a good or instrument at a set price and specified quantity grade at a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts - ETC), versus Forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
• G7
• Group of 7 Nations - United States, Japan, Germany, United Kingdom, France, Italy and Canada. 

• Group of 8 - G7 nations plus Russia. 
• Gamma
• Concepts in the options markets are expressed in terms of the Greek alphabet. Gamma refers to the rate of change in an option’s delta relative to the price of the underlying asset. A short gamma position will become shorter as the price of the underlying asset increases. As the market rallies, you are effectively selling more and more of the underlying asset as the delta becomes more negative.

A quick market move in which prices skip several levels without any trades occurring. Gaps usually follow economic data or news announcements. 

Gearing refers to trading a notional value that is greater than the amount of capital a trader is required to hold in his or her trading account. It is expressed as a percentage or a fraction. 

• An index of the top 30 companies (by market capitalization) listed on the German stock exchange – another name for the DAX. 
• Gilts
• UK government bonds
• Give
• To transact a deal on the bid price, i.e. to sell at the bid price, to whoever is bidding.
• Given
• Refers to a bid being hit or selling interest. 

A technical level succumbs to a hard-fought battle. 

Greenwich Mean Time - The most commonly referred time zone in the forex market. GMT does not change during the year, as opposed to daylight savings/summer time. 

The purchase of a stock, commodity or currency for investment or speculation – with the expectation of the price increasing. 

The selling of a currency or product not owned by the seller – with the expectation of the price decreasing. 

Commonly accepted that gold moves in the opposite direction of the US dollar. The long-term correlation coefficient is largely negative, but shorter-term correlations are less reliable. 

A certificate of ownership that gold investors use to purchase and sell the commodity instead of dealing with transfer and storage of the physical gold itself. 

The standard unit of trading gold is one contract which is equal to 10 troy ounces. 

An order that will expire at the end of the day if it is not filled. 

An order to buy or sell at a specified price that remains open until filled or until the client cancels. 

• An order type that will expire on the date you choose, should it not be filled beforehand. 
• Gotobi
• A cultural tradition in Japan of settling accounts on the 5th day of the month (and on dates that are multiples of 5, so 5, 10, 15, 20, 25 and 30). In FX markets it relates to importer demand for USD/JPY, said to occur on the 5th of each month. Needs to be taken with a grain of salt, markets are not that simple: but at least now when you see commentators referring to Gotobi demand, you’ll know what they mean.
• Governing Council (of the ECB)
• The Governing Council is the 23-member monetary policy-setting group within the European Central Bank. Generally, anyone who is referred to as part of the ECB on ForexLive is a member of the Governing Council.
• Greenback
• Nickname for the US dollar. 

Total value of a country's output, income or expenditure produced within its physical borders. 

Gross domestic product plus income earned from investment or work abroad. 

An order type that protects a trader against the market gapping. It guarantees to fill your order at the price asked. 

A stop-loss order guaranteed to close your position at a level you dictate, should the market move to or beyond that point. It is guaranteed even if there’s gapping in the market. 

• Refers to traders pushing to trigger known stops or technical levels in the market.
• Handle
• Every 100 pips in the FX market starting with 000.
•  Haircut
• When bondholders are forced or voluntarily take a worse deal than the one outlined in the bond covenant.

A country's monetary policy-makers are referred to as ‘hawkish’ when they believe that higher interest rates are needed, usually to combat inflation or restrain rapid economic growth or both. 

• A position or combination of positions that reduces the risk of your primary position.
• Hindenburg Omen
• A stock market technical indicator when two trading days within 30 days of each other where, on the same day, 10-week moving average is rising, new highs are greater than 2.2% of total issues traded, new lows are greater than 2.2% of total issues traded, and the McClellan Oscillator is negative.
•  
• Hit the bid
• To sell at the current market bid. 
• HKMA
• Hong Kong Monetary Authority, the central bank of Hong Kong.

• A name for the Hong Kong Hang Seng Index.
• Ichimoku
• (Ichimoku Kinko Hyo)A series of technical indicators packaged together and overlaid on a candlestick or bar chart to form the Ichimoku chart. Popularly used for yen crosses.

Little volume being traded in the market; a lack of liquidity often creates choppy market conditions. 

International Monetary Market, the Chicago-based currency futures market, that is part of the Chicago Mercantile Exchange. 

A traditional futures contract based on major currencies against the US dollar. IMM futures are traded on the floor of the Chicago Mercantile Exchange. 

• 8:00am - 3:00pm New York. 
• Interbank
• The bank-to-bank market in foreign exchange. Banks can deal directly with each other in currencies, most often over the phone, or through EBS or Reuters Dealing. ‘Interbank’ dealing usually refers to the direct dealing between banks with no broker intervening (classing EBS and Reuters as brokers in this context as they serve to match up buyers and sellers). Bank ‘A’ contacts Bank ‘B’ and asks for a price in (for example) USD/JPY, in an amount (20 million USD, for example). Bank ‘B’ ‘makes’ (in this way banks are market makers to each other) a price, showing a bid and an offer: Bank A is then free to transact a deal on the shown bid or offer, or to pass and not deal.
• INDU
• Abbreviation for the Dow Jones Industrial Average. 

Measures the total value of output produced by manufacturers, mines and utilities. This data tends to react quickly to the expansions and contractions of the business cycle and can act as a leading indicator of employment and personal income data. 

An economic condition whereby prices for consumer goods rise, eroding purchasing power. 

The initial deposit of collateral required to enter into a position. 

A private company’s initial offer of stock to the public – short for Initial Public Offering. 

The Foreign Exchange rates which large international banks quote to each other. 

Adjustments in cash to reflect the effect of owing or receiving the notional amount of equity of a CFD position. 

Action by a central bank to affect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates. 

A person or corporate entity which introduces accounts to a broker in return for a fee. 

Symbol for S&P 500 Index. 

An index that assesses the state of the US manufacturing sector by surveying executives on expectations for future production, new orders, inventories, employment and deliveries. Values over 50 generally indicate an expansion, while values below 50 indicate contraction. 

• An index that surveys service sector firms for their outlook, representing the other 80% of the US economy not covered by the ISM Manufacturing Report. Values over 50 generally indicate an expansion, while values below 50 indicate contraction.
• JGB
• Japanese government bonds.

Measures the mood of businesses that directly service consumers such as waiters, drivers and beauticians. Readings above 50 generally signal improvements in sentiment. 

• Measures the total value of new orders placed with machine tool manufacturers. Machine tool orders are a measure of the demand for companies that make machines, a leading indicator of future industrial production. Strong data generally signals that manufacturing is improving and that the economy is in an expansion phase.
•  Jiji
• A major Japanese news agency (like Reuters).
• Jobber
• A trader who buys and sells, often frequently, to seize short-term market opportunity. Can be intraday or over a couple of days. This doesn’t exclude him/her from having a longer term view, and will often trade in the short term contra to that core view
• JPN225
• A name for the NEKKEI index.

To limit your trades due to inclement trading conditions. In either choppy or extremely narrow markets, it may be better to stay on the sidelines until a clear opportunity arises. 

Nickname for NZD/USD. 

Option strategy that requires the underlying product to trade at a certain price before a previously bought option becomes active. Knock-ins are used to reduce premium costs of the underlying option and can trigger hedging activities once an option is activated. 

• Option that nullifies a previously bought option if the underlying product trades a certain level. When a knock-out level is traded, the underlying option ceases to exist and any hedging may have to be unwound.
• Last dealing day
• The last day you may trade a particular product. 

The last time you may trade a particular product. 

Statistics that are considered to predict future economic activity. 

A price zone or particular price that is significant technically or based on reported orders/option interest. 

Also known as margin, this is the percentage or fractional increase you can trade from the amount of capital you have available. It allows traders to trade notional values far higher than the capital they have. For example: leverage of 100:1 means you can trade a notional value 100 times greater than the capital in your trading account.* 

Short-term traders, referring largely to the hedge fund community. 

Potential loss, debt or financial obligation. 

The London Inter-Bank Offered Rate. Banks use LIBOR as a base rate for international lending. 

An order that seeks to buy at lower levels than the current market or sell at higher levels than the current market. A limit order sets restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 117.00/05, then a limit order to buy USD would be at a price below the current market, e.g. 116.50. 

A market which has sufficient numbers of buyers and sellers for the price to move in a smooth manner. 

The closing of an existing position through the execution of an offsetting transaction. 

The ability of a market to accept large transactions with minimal to no impact on price stability. 

• 08:00 – 17:00 (London). 
• Long
• Being long is when you’ve bought with the intention of selling at a higher price in order to profit. For example, being long EUR/USD is have bought euro against USD, with the plan being to sell the euro at a higher price in order to profit.

A position that appreciates in value if market price increases. When the base currency in the pair is bought, the position is said to be long. This position is taken with the expectation that the market will rise. 

Traders who have bought a product. 

Nickname for USD/CAD. 

• A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.
• LTRO - Long-term refinancing operations
• Long-term collateralized loans extended by the ECB to member banks. Terms have ranged from 3 months up to 3-years.
• Macro
• The longest-term trader who bases their trade decisions on fundamental analysis. A “macro” trade’s holding period can last anywhere from around 6 months to multiple years. 

• Measures the total output of the manufacturing aspect of the Industrial Production figures. This data only measures the 13 sub sectors that relate directly to manufacturing. Manufacturing makes up approximately 80% of total Industrial Production. 
• Maple bonds
• A foreign company bond that is sold in Canadian dollars.
• Margin
• The required collateral that an investor must deposit to hold a position. 

A request from a broker or dealer for additional funds or other collateral on a position that has moved against the customer. 

The total value of a listed company – share price multiplied by the number of shares issued. 

A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial product. 

• An order to buy or sell at the current price. 
• Market Profile
• A rarely-seen type of charting pioneered and patented by Peter Steidlmayer.
• Market risk 
• Exposure to changes in market prices. 

• Process of re-evaluating all open positions in light of current market prices. These new values then determine margin requirements. 
• MAS
• The Monetary Auuthority of Singapore, Singapore’s central bank.
• Maturity
• The date for settlement or expiry of a financial product. 

• Refers to Medley Global Advisors, a market consultancy that maintains close contacts with central bank and government officials around the world. Their reports can frequently move the currency market as they purport to have inside information from policy makers. The accuracy of the reports has fluctuated over time, but the market still pays attention to them in the short-run. 
• Mine
• What an interbank dealer will say to a counterparty or voice broker when he (or she) wants to buy.

Synonymous with black box. Systems that automatically buy and sell based on technical analysis or other quantitative algorithms. 

Hedge fund which uses some form of quantitative model to initiate and liquidate trades. The most familiar type of funds are trend-followers like J.W. Henry and Co. Many of these funds trade at set times during the day, often at 10 am New York time.

Abbreviation for month over month, which is the change in a data series relative to the prior month's level. 

A series of technical studies (e.g. RSI, MACD, Stochastics, Momentum) that assesses the rate of change in prices. 

• Traders who align themselves with an intra-day trend that attempts to grab 50-100 pips.
• MPC
• Monetary Policy Committee of the Bank of England, which meets once a month to decide on the official interest rate in the UK.
• Mrs Watannabe
• A collective term that originally applied to Japanese housewife speculators, but is now used to refer to Japanese retail margin FX traders. They can be a powerful force.
• NAS100
• A name for the NASDAQ 100 index. 

The amount of currency bought or sold which has not yet been offset by opposite transactions. 

• 8:00am – 5:00pm (New York time). 
• Nikkei
• A major Japanese newspaper.
• Nikkei225
• The main Japanese stock index.

An option that pays a fixed amount to the holder if the market never touches the predetermined Barrier Level. 

• Symbol for NYSE Composite Index.
• Offer (also known as the Ask price)
• The price at which the market is prepared to sell a product. Prices are quoted two-way as Bid/Offer. The Offer price is also known as the Ask. The Ask represents the price at which a trader can buy the base currency, which is shown to the right in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs. 

• French government bonds.
• Offered
• If a market is said to be trading ‘offered’, it means a pair is attracting heavy selling interest, or offers. 

• A trade that cancels or offsets some or all of the market risk of an open position. 
• OMT
• The ECB program introduced in August 2012 to directly buy government bonds in the secondary market. Can only be used after a government asks for financial assistance.
• On top
• Attempting to sell at the current market order price. 

A designation for two orders whereby if one part of the two orders is executed, then the other is automatically cancelled. 

An option that pays a fixed amount to the holder if the market touches the predetermined Barrier Level. 

An order that will be executed when a market moves to its designated price. Normally associated with Good 'til Cancelled Orders. 

• An active trade with corresponding unrealized P&L, which has not been offset by an equal and opposite deal. 
• Operation Twist
• A monetary policy operation last used in the early 1960s in which the Fed sold shorter-dated Treasuries from their portfolio and purchased longer-dated maturities in order to drive down long-term interest rates. The overall size of the Fed’s balance sheet is not impacted by the move.
• Option
• A derivative which gives the right, but not the obligation, to buy or sell a product at a specific price before a specified date. 

An instruction to execute a trade. 

• A system used to show market depth of traders willing to buy and sell at prices beyond the best available. 
• Outside day key reversal
• Key reversals are outside days at either trend highs or trend lows. A key reversal occurs when a market makes a new high, then reverses down, takes out the previous day’s low and closes lower than the previous day’s close.
• Over the counter (OTC) 
• Used to describe any transaction that is not conducted via an exchange. 

• A trade that remains open until the next business day.
• Paid
• Refers to the offer side of the market dealing. 

The forex quoting convention of matching one currency against the other. 

• A very heavy round of selling. 
• Parabolic
• A market that moves a great distance in a very short period of time, frequently moving in an accelerating fashion that resembles one half of a parabola. Parabolic moves can be either up or down. 
• Pari-passu
• On equal footing, in Latin. Refers to bond holders having equal rights in the event of a debt restructuring.
• Partial fill
• Where only part of an order has been executed. 

• Waiting for certain levels, or news events to hit the market before entering a position. 
• Pay
• To transact a deal on the offered price, i.e. to buy at the offered price, to whoever is offering.
• PBoC
• The People’s Bank of China, China’s central bank
• Personal income
• Measures an individual’s total annual gross earnings from wages, business enterprises and various investments. Personal income is the key to personal spending, which accounts for 2/3 of GDP in the major economies. 
• Plain Vanilla Option
• The most basic option type with a simple expiration date and strike price with no additional features.
• Pips
• The smallest unit of price for any foreign currency, pips refer to digits added to or subtracted from the fourth decimal place, i.e. 0.0001. 

• Exposure to changes in governmental policy which may have an adverse effect on an investor's position. 
• Point and Figure
• A method of charting price action.
• Portfolio
• A collection of investments owned by an entity. 

The net total holdings of a given product. 

• The amount by which the forward or futures price exceeds the spot price. 
• Price transparency
• Describes quotes to which every market participant has equal access. 
• Prime Brokers
• Firms which allow clients like hedge funds to use their credit facilities to access financial markets. For example, a hedge fund client of Bank X can trade in the interbank FX market using Bank X’s name in return for a fee.
• Profit
• The difference between the cost price and the sale price, when the sale price is higher than the cost price. 

The tendency of a trending market to retrace a portion of the gains before continuing in the same direction. 

An economic indicator which indicates the performance of manufacturing companies within a country. 

Measures the outlook of purchasing managers in the service sector. Such managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries and inventories. Readings above 50 generally indicate expansion, while readings below 50 suggest economic contraction. 

• A product which gives the owner the right, but not the obligation, to sell it at a specified price.
• Quote
• An indicative market price, normally used for information purposes only.
•  Quantitative Ease(ing)
• A strategy used by central banks once targeting short-term interest rates becomes ineffective because rates have reached zero (or close to it). The central bank buys assets, typically government bonds, in an effort to inject money into the economy.
• Quantitative easing
• When a central bank injects money into an economy with the aim of stimulating growth. 

• A type of future with expiry dates every three months (once per quarter).*
• Rally
• A recovery in price after a period of decline. 

When a price is trading between a defined high and low, moving within these two boundaries without breaking out from them. 

The price of one currency in terms of another, typically used for dealing purposes. 

Reserve Bank of Australia, the central bank of Australia. 

Reserve Bank of New Zealand, the central bank of New Zealand. 

Traders of significant size including pension funds, asset managers, insurance companies, etc. They are viewed as indicators of major long-term market interest, as opposed to shorter-term, intraday speculators. 

• The amount of money you have made or lost when a position has been closed. 
• Reflation Trade
• The purchase of asset classes that investors expect to do well in an economic recovery. Commodities, equities and emerging markets are examples. Asset classes to be avoided in a reflationary atmosphere include bonds and low-yielding currencies.
• Resistance level
• A price that might act as a ceiling. The opposite of support. 

An individual investor who trades with money from personal wealth, rather than on behalf of an institution. 

• Measures the monthly retail sales of all goods and services sold by retailers based on a sampling of different types and sizes. This data provides a look into consumer spending behavior, which is a key determinant of growth in all major economies. 
• REIT
• Real Estate Investment Trust (the BOJ has recently been buying Japan REITs as part of its APP easing program).
• Revaluation
• When a pegged currency is allowed to strengthen or rise as a result of official actions; the opposite of a devaluation. 

• A form of corporate action where shareholders are given rights to purchase more stock. Normally issued by companies in an attempt to raise capital.
•  Rinban
• Refers to BOJ buying government bonds from the market in regular market operations (the other BOJ bond-buying program is the APP: Asset Purchase Program. The two were recently merged into one by the BOJ).
• Risk
• Exposure to uncertain change, most often used with a negative connotation of adverse change. 

The employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk. 

A rollover is the simultaneous closing of an open position for today's value date and the opening of the same position for the next day's value date at a price reflecting the interest rate differential between the two currencies. 

• Round trip 
• A trade that has been opened and subsequently closed by an equal and opposite deal. 

An indicator of the status of your open positions; that is, unrealized money that you would gain or lose should you close all your open positions at that point in time. 

• Symbol for Russell 2000 Index.
• SEC
• Securities and Exchange Commission. 
• Securities Market Program
• The program in which the ECB purchases government bonds of members states where the market has pushed yields up beyond what the ECB sees as fundamentally justifiable. The ECB sterilizes the euros added to the monetary system on a weekly basis so as not to impact overall money supply. It is a method of monetary policy transmission.
• Sector
• A group of securities that operate in a similar industry. 

Taking a short position in expectation that the market is going to go down. 

The process by which a trade is entered into the books, recording the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another. 

Symbol for Shanghai A Index. 

An investment position that benefits from a decline in market price. When the base currency in the pair is sold, the position is said to be short. 

A situation in which traders are heavily positioned on the short side and a market catalyst causes them to cover (buy) in a hurry, causing a sharp price increase. 

• After a decline, traders who earlier went short begin buying back. 
• Short
• In financial markets being short refers to selling something you don’t own (with the intention of buying it back at a lower price in order to profit). Its the same in the FX market. For example, to be short USD/JPY means you have sold USD against yen, with the intention of buying back USD/JPY when the rate has fallen in order to profit.
• Shorts
• Traders who have sold, or shorted, a product, or those who are bearish on the market. 

Traders staying out of the markets due to directionless, choppy, unclear market conditions are said to be ‘on the sidelines’ or ‘sitting on their hands’. 

A simple average of a pre-defined number of price bars. For example, a 50 period daily chart SMA is the average closing price of the previous 50 daily closing bars. Any time interval can be applied. 

The difference between the price that was requested and the price obtained typically due to changing market conditions. 

A term used when the market feels like it is ready for a quick move in any direction. 

Choppy trading conditions that lack any meaningful trend and/or follow-through. 

Swiss National Bank, the central bank of Switzerland. 

Refers to central banks active in the spot market. 

• A market whereby products are traded at their market price for immediate exchange. 
• Spot Market
• In interbank FX the spot market is the market for currencies to be deleivered within a two-day period (or oneday in the case of the USD/CAD and some others).

The current market price. Settlement of spot transactions usually occurs within two business days. 

The purchase or sale of a product for immediate delivery (as opposed to a date in the future). Spot contracts are typically settled electronically. 

• The difference between the bid and offer prices. 
• Spread
• The space between a bid an offer, eg. if the price is 35 bid and 36.5 offered, the spread is said to be one and a half points. In order to get set in a position with no waiting (when you simply must be on board NOW) it is necessary to cross the spread to pay the offer (i.e. if you want to be long and dont want to place a bid but just want in right now) or give the bid (i.e.if you want to be short and dont want to place an offer but just want to be short right now).
• Square
• Purchase and sales are in balance and thus the dealer has no open position. 

A name for the S&P index. 

Nickname for GBP/USD. Also known as Pound or British Pound. 

A market on which securities are traded. 

• The combined price of a group of stocks - expressed against a base number - to allow assessment of how the group of companies is performing relative to the past. 
• Stop Loss
• An order which closes out a market position once a certain price level trades in the market. For example, a sell order placed below the market price to protect against accelerating losses.
• Stop loss hunting 
• When a market seems to be reaching for a certain level that is believed to be heavy with stops. If stops are triggered, then the price will often jump through the level as a flood of stop-loss orders are triggered. 

A stop order is an order to buy or sell once a pre-defined price is reached. When the price is reached, the stop order becomes a market order and is executed at the best available price. It is important to remember that stop orders can be affected by market gaps and slippage, and will not necessarily be executed at the stop level if the market does not trade at this price. A stop order will be filled at the next available price once the stop level has been reached. Placing contingent orders may not necessarily limit your losses. 

This is an order placed to buy above the current price, or to sell below the current price. These orders are useful if you believe the market is heading in one direction and you have a target entry price. 

This is an order placed to sell below the current price (to close a long position), or to buy above the current price (to close a short position). Stop loss orders are an important risk management tool. By setting stop loss orders against open positions you can limit your potential downside should the market move against you. Remember that stop orders do not guarantee your execution price – a stop order is triggered once the stop level is reached, and will be executed at the next available price. 

• Refers to stop-loss orders building up; the accumulation of stop-loss orders to buy above the market in an upmove, or to sell below the market in a downmove. 
• Sovereign wealth fund (SWF)
• A fund set up by a country with large foreign exchange reserves to help manage those reserves. Typically SWFs purchase long-term securities to try and enhance investment returns beyond what central banks typically earn holding government debt. Examples include the Government of Singapore Investment Company and the Abu Dhabi Investment Authority.
• Sovereign names
• Used interchangeably for sovereign wealth funds or central banks.
• Strike price
• The defined price at which the holder of an option can buy or sell the product. 

A price that acts as a floor for past or future price movements. 

A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance. 

A temporary halt in the trading of a product. 

A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate. 

• The nickname for USD/CHF.
• Tankan
• There is a Bank of Japan Tankan Survey and a Reuters Tankan Survey. Both are surveys of manufacturing and service companies designed to assess business conditions in Japan. The BOJ Tankan is conducted quarterly, the Reuters Tankan is monthly.
• Taper / Tapering
• It is thought that the Federal Reserve will begin to slow down its asset purchasing in response to an improving US economy not requiring so much monetary accommodation. This slowing down (not stopping) of purchases is referred to as tapering
• T/P
• Stands for “take profit.” Refers to limit orders that look to sell above the level that was bought, or buy back below the level that was sold. 

Assuming control of a company by buying its stock. 

The process by which charts of past price patterns are studied for clues as to the direction of future price movements. 

Traders who base their trading decisions on technical or charts analysis. 

For example: US 10-year note – US government issued debt which is repayable in ten years. 

Illiquid, slippery, or choppy market environment. A light volume market that produces erratic trading conditions. 

For example: UK 30-year gilt – UK government issued debt which is repayable in 30 years. 

A minimum change in price, up or down. 

The remaining time until a contract expires. 

09:00 – 18:00 (Tokyo). 

• Simultaneous buying and selling of a currency for delivery the following day. 
• Toshin
• A Toshin fund is a Japanese investment trusts which invest in non-yen denominated assets, for example, foreign bonds or stocks. In brief, Japanese funds invested abroad.
• Trade balance
• Measures the difference in value between imported and exported goods and services. Nations with trade surpluses (exports greater than imports), such as Japan, tend to see their currencies appreciate, while countries with trade deficits (imports greater than exports), such as the US, tend to see their currencies weaken. 

The number of units of product in a contract or lot. 

A pair is acting strong and/or moving higher; bids keep entering the market and pushing prices up. 

A postponement to trading that is not a suspension from trading. 

A market that feels like it wants to move lower, usually associated with an offered market that will not rally despite buying attempts. 

A pair is acting weak and/or moving lower, and offers to sell keep coming into the market. 

The range between the highest and lowest price of a stock usually expressed with reference to a period of time. For example: 52-week trading range. 

A trailing stop allows a trade to continue to gain in value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance. Placing contingent orders may not necessarily limit your losses. 

The cost of buying or selling a financial product. 

• The date on which a trade occurs. 
• Trend
• Those things we always seem to be fighting. Just kidding. A tendency of a currency pair to move in a consistent direction. For example, USD/JPY had an uptrend from October 2012 to April 2013 (from around 78 to 99 as of writing).

Price movement that produces a net change in value. An uptrend is identified by higher highs and higher lows. A downtrend is identified by lower highs and lower lows. 

The total money value or volume of all executed transactions in a given time period. 

When both a bid and offer rate is quoted for an FX transaction. 

Symbol for CBOE 10-Year Treasury Yield Index.

Describing unforgiving market conditions that can be violent and quick. 

A name for the FTSE 100 index. 

Measures the average wage including/excluding bonuses paid to employees. This is measured QoQ from the previous year. 

Measures the number of people claiming unemployment benefits. The claimant count figures tend to be lower than the unemployment data since not all of the unemployed are eligible for benefits. 

Measures the relative level of UK house prices for an indication of trends in the UK real estate sector and their implication for the overall economic outlook. This index is the longest monthly data series of any UK housing index, published by the largest UK mortgage lender (Halifax Building Society/Bank of Scotland). 

Measures the change in the number of people claiming unemployment benefits over the previous month. 

Measures the change in total labor cost expended in the production of one unit of output. 

A name for Brent Crude Oil. 

Measures the rate of inflation experienced by manufacturers when purchasing materials and services. This data is closely scrutinized since it can be a leading indicator of consumer inflation. 

Measures the rate of inflation experienced by manufacturers when selling goods and services. 

The actual traded market from where the price of a product is derived. 

Measures the total workforce that is unemployed and actively seeking employment, measured as a percentage of the labor force. 

Polls 500 US households each month. The report is issued in a preliminary version mid-month and a final version at the end of the month. Questions revolve around individuals’ attitudes about the US economy. Consumer sentiment is viewed as a proxy for the strength of consumer spending. 

The theoretical gain or loss on open positions valued at current market rates, as determined by the broker in its sole discretion. Unrealized Gains/Losses become Profits/Losses when the position is closed. 

A new price quote at a price higher than the preceding quote. 

In the US, a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed. 

A name for the Dow Jones index. 

A name for WTI Crude Oil. 

The interest rate at which US banks will lend to their prime corporate customers.  

Also known as the maturity date, it is the date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. 

Funds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations. 

• Shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely-used measure of market risk and is often referred to as the "investor fear gauge." 
• Vanilla Option
• A financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, within a given time frame. A vanilla option is a normal call or put option that has standardized terms and no special or unusual features. It is generally traded on an exchange such as the Chicago Board Options Exchange.
• Voice Broker
• On interbank dealing desks broking is conducted via screens but also via ‘voice brokers’, where dealers listen to brokers speaking/yelling out prices (eg. 35/38, i.e. 35 bid and 38 offered) and transact with the brokers by speaking/yelling back. It sort of like a permanently open telephone line on speaker. Voice broking persists, but electronic, screen-based trading has taken much of the volume.
• Volatility 
• Referring to active markets that often present trade opportunities.
• Wedge chart pattern
• Chart formation that shows a narrowing price range over time, where price highs in an ascending wedge decrease incrementally, or in a descending wedge, price declines are incrementally smaller. Ascending wedges typically conclude with a downside breakout and descending wedges typically terminate with upside breakouts. 
• Whipsaw
• When a price heads off in one direction only to be followed very quickly by a move in the opposite direction. For example, EUR/USD may break technical resistance at a price, trade 10 or so points higher than a few minutes later have fallen 30 or more points. Longs have been ‘whipsawed’.
• Whipsaw 
• Slang for a highly volatile market where a sharp price movement is quickly followed by a sharp reversal. 

Measures the changes in prices paid by retailers for finished goods. Inflationary pressures typically show earlier than the headline retail. 

Where a limit order has been requested but not yet filled. 

• Stands for The Wall Street Journal.
• XAG/USD
• Symbol for Silver Index. 

Symbol for Gold Index. 

• Symbol for AMEX Composite Index.
• Xinhua News Agency
• Ministry level - official press agency of China (PROC).
• Yard
• A billion units.

• The percentage return from an investment. 
• Yours
• What an interbank dealer will say to a counterparty or voice broker when he (or she) wants to sell.
• YoY
• Abbreviation for year over year.

The Yuan is the base unit of currency in China. The Renminbi is the name of the currency in China, where the Yuan is the base unit.