forex glossary ! (1)

Abandon - The act of an option holder in electing not to exercise or offset an option.
Accommodation Trading - Non-competitive trading entered into by a trader, usually to assist another with illegal trades.
Account Statement - An extract under the bill. Contains data on the spent operations and a status of the client bill at the broker for the chosen period.
Accrued Interest - Interest earned between the most recent interest payment and the present date but not yet paid to the lender.
Action Type - An Action Type is a uniform category of rule violation, such as floor recordkeeping violations, sales practice violations and trade practice violations.
Actuals - The physical or cash commodity, as distinguished from a commodity futures contract. See also Cash Commodity or Spot Commodity. Also See Cash Commodity.
Add-on Method - A method of paying interest where the interest is added onto the principal at maturity or interest payment dates.
Adjudication - The determination of a controversy and a pronouncement of a judgment based on evidence presented. Implies a final judgment of the court or other body deciding the matter, as opposed to a proceeding in which the merits of the cause of action were not reached.
Back Months - Those futures delivery months with expiration or delivery dates furthest into the future; futures delivery months other than the spot or nearby delivery month.
Back Office - The departments and processes related to the settlement of financial transactions.
Back to Back - (1) Transaction where all the obligations and liabilities in one transaction are mirrored in a second transaction. (2) Transaction where a loan is made in one currency in one country against a loan in another country in another currency.
Backwardation - A market in which futures prices are progressively lower in the distant delivery months; the opposite of Contango. See also Inverted Market.
Bad Faith - Dishonesty or fraud in a transaction, such as entering into an agreement with no intention of ever living up to its terms, or knowingly misrepresenting the quality of something that is being bought or sold.
Balance of Forex market trading - The value of a country's exports minus its imports.
Balance of Payments - A systematic record of the economic transactions during a given period for a country.(1) The term is often used to mean either: (i) balance of payments on "current account"; or (ii) the current account plus certain long term capital movements.(2) The combination of the trade balance, current balance, capital account and invisible balance, which together make up the balance of payments total. Prolonged balance of payment deficits tend to lead to restrictions in capital transfers, and or decline in currency values.
Balance of Trade - The value of exports less imports. Invisibles are normally excluded, and is otherwise referred to as mercantile or physical trade. Figures can be quoted on FoB/ FaS , customs cleared, or Fob export, FoB export.
Band - The range in which a currency is permitted to move. A system used in the ERM.
Bank Line - Line of credit granted by a bank to a customer, also known as a " line".
Bank Notese - Bank notes are paper issued by the central or issuing bank and are legal tender, but are not usually considered to be part of the FX market. However bank notes can be converted, in some counties, into FX. Bank notes are normally priced at a premium to the current spot rate for a currency.
Bank Rate - The rate at which a central bank is prepared to lend money to its domestic banking system.
Cabinet Trade - A trade that allows options traders to liquidate deep out-of-the-money options by trading the option at a price equal to one-half tick.
Cable - Forex market trader jargon referring to the Sterling/US Dollar exchange Forex rate. So called because the Forex rate was originally transmitted via a transatlantic cable beginning in the mid 1800's.
Cable Transfer - Telegraphic transfer of funds from one centre to another. Now synonymous with inter bank electronic fund transfer.
CACE - Citrus Associates of the Cotton Exchange.
Calendar Spread - See Horizontal Spread.
Call - An option that gives the holder the right to buy the underlying instrument at a specified price during a fixed period.
Call Option - The buyer of a call option acquires the right, but not the obligation, to purchase a particular futures contract at a stated price on or before a particular date.
Call Rule - An exchange regulation under which an official bid price for a cash commodity is competitively established at the close of each day's trading. It holds until the next opening of the exchange.
Canceling Order - An order that deletes a customer's previous order.
Candlestick Chart - 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.
Capital Account - Juxtaposition of the long and short term capital imports and exports of a country.
Capital Gain - The profit made from the sale of a capital asset, such as real estate, a house, jewelry or stocks and bonds.
Daily Price Limit - The maximum price advance or decline from the previous day's settlement price permitted during one trading session, as fixed by the rules of an exchange.
Daily Trading Limit - The maximum price range set by the exchange each day for a contract.
Day Order - An order that if not executed expires automatically at the end of the trading session on the day it was entered.
Day Trader - A speculator who will normally initiate and offset a position within a single trading session.
Day Trading - Refers to positions which are opened and closed on the same trading day.
Dealer - An individual who 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 Forex market trading 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.
Dealer Option - A put or call on a physical commodity, not originating on or subject to the rules of an exchange, in which the obligation for performance rests with the writer of the option. Dealer options are normally written by firms handling the underlying commodity and offered to public customers, although the reverse may also be true.
Decision - A formal, written judgment or verdict.
Deck - The orders for purchase or sale of futures or option contracts held by a floor broker.
Electronic Trading System - Systems that allow participating exchanges to list their products for trading after the close of the exchange's open outcry trading hours (i.e., Chicago Board of Trade's Project A, Chicago Mercantile Exchange's GLOBEX and New York Mercantile Exchange's ACCESS.)
Elliot Wave Theory - (1) A theory named after Ralph Elliot, who contended that the stock market tends to move in discernible and predictable patterns reflecting the basic harmony of nature; or (2) in technical analysis, a charting method based on the belief that all prices act as wavers, rising and falling rhythmically.
Enjoin - To command or instruct with authority; to abate, suspend or restrain. For example, one may be "enjoined" or commanded by a court with equitable powers, either to do a specific act or to refrain from doing a certain act.
Equilibrium Price - The market price at which the quantity supplied of a commodity equals the quantity demanded.
Equity - The dollar value of a futures trading account if all open positions were offset at the going market price.
Escrow Account - A special account in which a lawyer or escrow agent deposits money or documents that do not belong to him or his firm.
Estoppel - A bar which precludes someone from denying the truth of a fact which has been determined in an official proceeding or by an authoritative body.
European Terms - A method of quoting exchange rates, which measures the amount of foreign currency needed to buy one U.S. dollar, i.e., foreign currency unit per dollar. See Reciprocal of European Terms.
Expiration Date - Generally the last date on which an option may be exercised. It is not uncommon for an option to expire on a specified date during the month prior to the delivery month for the underlying futures contracts.
Fast Market - Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.
False Breakout - Short-term movement of a Forex rate through some conditional border (the previous top or a bottom, a level of consolidation), and then return and movement to the opposite party.
FCM - See Futures Commission Merchant.
FEDAI - Foreign Exchange Dealers Association of India) is an association of all dealers in foreign exchange which sets the ground rules for fixation of commissions and other charges and also determines the rules and regulation relating to day-to-day transactions in foreign exchange in India. The FEDAI has commonly recognised 38 currencies for dealing.
Federal Deposit Insurance Corporation (FDIC) - The regulatory agency responsible for administering bank depository insurance in the US.

Fictitious Trading - Wash trading, bucketing, cross trading, or other schemes which give the appearance of trading. Actually, no bona fide, competitive trade has occurred.
Fiduciary Duty - An obligation to act solely in the best interest of another party. For instance, a corporation's board member has a fiduciary duty to the shareholders, a trustee has a fiduciary duty to the trust's beneficiaries, and an attorney has a fiduciary duty to a client.
Fill or Kill Order - A customer order which demands immediate execution or cancellation.
Forex trader - The dealer making operations on the means or with support of which to him were entrusted by investors.
Futures Industry Association (FIA) - The national trade association for futures commission merchants.
Futures Price - (1) Commonly held to mean the price of a commodity for future delivery that is traded on a futures exchange; or (2) the price of any futures contract.
FX - Foreign Exchange.

Gamma - A measurement of how fast delta changes, given a unit of change in the underlying futures price.
Gap - Break. The range of the prices inside of which there were no quotations, forms break on the price schedule.
GIM Membership (CBOT) - A Chicago Board of Trade membership that allows an individual to trade all futures contracts listed in the government instrument market category.
General Conduct Action Type - A violation arising from conduct not described by any other action type violation.
Ginzy Trading - A trade practice in which a floor broker, in executing an order, particularly a large order, will fill a portion of the order at one price and the remainder of the order at another price to avoid an exchange's rule against trading at fractional increments or split ticks.
Give Up - A contract executed by one broker for the client of another broker that the client orders to be turned over to the second broker. The broker accepting the order from the customer collects a wire toll from the carrying broker for the use of the facilities. Often used to consolidate many small orders or to disperse large ones.
Gold Silver Ratio - The number of ounces of silver required to buy one ounce of gold at current spot prices.
Good This Week Order - Order which is valid only for the week in which it is placed.
Good 'Til Cancelled Order (GTC) - An order to buy or sell at a specified price. This order remains open until filled or until the client cancels.
Grades - Various qualities of a commodity.
Grain Terminal - Large grain elevator facility with the capacity to ship grain by rail and/or barge to domestic or foreign markets.
Grantor - A person who sells an option and assumes the obligation, but not the right, to sell (in the case of a call) or buy (in the case of a put) the underlying futures contract at the exercise price.
Guarantor - A secondary party who becomes obligated to repay a debt for the party primarily responsible who has failed to repay an obligation. A guarantor of an introducing broker is a futures commission merchant that is subject to discipline under NFA rules for violations committed by the introducing broker.