Ask
Means price asked on request
Back office
The department that deals with all registrations and procedures regarding daily financial transactions.
Base currency
Base currency is the first of the two currencies evaluated
EBC ( European Central Bank)
European bank based in Frankfurt
Bid
Means price asked on offer.
Ranging
The high and low prices, or high and low bids and offers, recorded during a specified time.
BOE
Bank of England.
BOJ
Bank of Japan.
Book
Set of orders pending execution.
Broker
Party that mediates between a buyer and a seller
Cable
The exchange rate between the U.S. dollar and the British pound sterling Derives from the fact that originally the odds GBP / USD were transmitted, since mid-1800, between the U.S. and Europe through the wiring that crossed the Atlantic Ocean.
Japanese candlestick
Is a chart technique, that among other, indicates the range of a day’s prices, the opening and closing prices and whether the market moved up or down during the trading session.
Capital gain
Earnings on the investments.
Cross rate
Exchange rate
US Dollar
Currency of the United States
Euro
Currency of the EC.
FED (Federal Reserve)
Department that includes 12 American banks.
Big Figure
The first two or three digits of a foreign exchange price or rate. Example: EUR/USD price of .8325/28 the big figure is .83
Flat
Term used to indicate a market or a price that is neither rising or falling
Forex
Forex Exchange Market
Swiss Franc
Currency of Switzerland.
Gap
Missing distance between the closing price and the new opening of a market. The price jumps on the scale of reference. In Forex is an event that happens rarely and only on Sunday night.
Brokers
People who operate on the market according to their personal insights
Hedging
Position established in one market in an attempt to offset exposure to price fluctuations in some opposite position in another market with the goal of minimizing one’s exposure to unwanted risk.
ISM Index
U.S. macroeconomic index, which tracks the national trend in the national manufacturing industry.
PMI Index
U.S. macroeconomic index, which tracks the national trend in the manufacturing industry.
Brokerage
Activity devoted to assisting buyers and/or sellers in the negotiation
Leverage
Use of debt to supplement investment. Companies usually leverage to increase returns to stock, as this practice can maximize gains.
Liquidity
The ability of a person or company to readily and easily obtain cash from its assets in order to meet obligations or make purchases.
Long
The holder of this position owns the security and will profit if the price of the security goes up.
Bond
Debt security in which one party agrees to lend money to another with added interests.
Zero coupon bond
Bond bought at a price lower than its face value, with the face value repaid at the time of maturity.
Overnight operations
Positions that remain open during the night and need the activity of rollover: closing and reopening immediately.
IEO (Italian Exchange Office)
Italian Institution of reference currencies within the Bank of Italy
Intraday
Transactions that are closed within the day.
OTC (Over The Counter) or Interbank
Transactions that are conducted between two counterparts over the network or telephone.
PIP (Performance Index Paper)
The smallest amount possible for an exchange rate.
For example, in the Forex, a Pip is equal to one hundredth of one percent for most currencies.
Position
A commitment to perform a transaction.
Open position
Transactions in progress on the market
Long term Position
Transactions in progress on the market with a long term prospective
Rating
The grading of a debt security with respect to the issuer’s ability to meet interest and principal requirements in a timely manner. Drawn up in 3 alphabetic characters from AAA to D.
Resistance
An effective upper bound on prices achieved because of many willing sellers at that price.
Exchange rate risk
Risk of loss due to any changes with the exchange rates .
Rollover
Is a process whereby a financial instrument is reinvested at maturity.
Scalping
Fast operations repeated several times during the day.
Short
the holder of this position owns the security and will profit if the price of the security goes down.
Spread
Price gap between the buying and selling price.
Sterling
Currency of Great Britain.
Stop loss
An order placed with a broker to sell a security when it reaches a certain price .
Stop profit
An order closed with a broker to sell a security when it reaches a certain level of profit.
Panic selling
A flurry of selling in a particular security. Panic selling is accompanied by a particular heavy volume and sharp price declines as owners scramble to sell before prices drop even more.
Target profit
Price where a broker believes that he must close a transaction.
Tick
Refers to the minimum change in price a security can have, either up or down.
Trading
Dealing activities.
Volatility
Indicates how much and how quickly the value of an investment or market sector changes.
Volume
the amount of shares traded in a security or in an entire market during a specific period.
Warrant
Warrants
Warrant is defined as a financial instrument listed on the stock exchange, consisting of a forward contract that gives the option to subscribe for, purchase (such Call Warrants) or sell (known as Put Warrants) of some underlying financial asset (underlying) to a price (called strike price or exercise price) and a deadline . The purchase price of the warrant is called a premium.
Depending on the underlying asset, there are two types of warrants:
-Warrants (in the strict sense) that have exclusively underlying shares
- Covered warrants which may have the underlying stocks, bonds, stock indices, bonds, baskets of securities, currencies or interest rates.
Theoretically the value of a warrant is given by the number of shares for the base value of each share less the exercise price.
Yen
Currency of Japan.
Yuan
Currency of China.
