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1. Valuation The process of determining the value of an asset or company. 2. Value Date The settlement date for a currency contract, usually two business days. For USD/CAD it is one business day. 3. Variation Margin Funds, which are required [...]
1. Unconvertible Currency A currency that cannot be exchanged for another because of foreign exchange regulations. 2. Uncovered See Open Position. 3. Under-Valuation See Undervalued. 4. Undervalued When a currency is below its purchasing power parity it [...]
1. S/N Roll See Spot/Next Roll. 2. Same Day Transaction A position that is opened and closed on the same day. 3. Sell Limit Order An order to execute a transaction only at a specified price (the limit) or higher. [...]
1. Rainbow Option An option that has two or more underlying assets. The option only pays out when all the underlying assets act accordingly. 2. Rally A period where prices surge upward. 3. Range The difference between the highest and lowest price of a currency pair during [...]
1. Quantitative Analysis A technique used to analyze an observed behavior by employing complex mathematical and statistical modeling, measurement, and research. 2. Quantitative Easing Quantitative easing is a monetary tool used by central banks to encourage spending within an economy. One of the most well-known instances of quantitative easing remains [...]
1. Par The official value of a currency. 2. Par Spread The term used to describe the situation where the bid and ask prices for a forward spread rate are identical. 3. Paris Nickname for the US Dollar-French Franc currency pair before the French Franc was converted [...]
1. OCO See also: One Cancels the Other Order 2. Odd Lot A non-standard transaction size. In forex, a standard lot is usually 100,000 units of a particular currency. 3. Off-Shore A business entity that may or may not be physically located in a country, but whose [...]
1. Naked Put A put sold by someone who is not short the underlying asset. 2. Narrow Market Also known as a thin market, where there is light trading. 3. NAV Net Asset Value. The total value of an asset [...]
1. M1 Money supply component which consists of all cash in circulation, plus all of the money held in checking accounts, as well as all the money in travelers checks. 2. M2 Money supply component which consists of M1 plus all of the money [...]
A long term perspective may be taken with an existing channel line and an opportunity for entering the market may exist for the EUR/USD pair. The original trend line (1) has been drawn, connecting with yesterday’s closing price of 1.4732. A parallel channel line (2) has been drawn from the prominent peak of 1.3630. Notice [...]