Tag: F

An exchange rate where the value is determined by market forces.

The profit/loss that may only be realized if the open contracts are liquidated (settled).

An exchanges trading area. May also be used as the lower limit of an option or an interest rate.

Abbreviation for Federal Open Market Committee.

FX and Forex refer to Foreign Exchange, the exchange of one currency for another. Foreign Exchange is traded over the counter on an inter-bank system, a network of several thousand banks, although most trading is done by a few hundred such institutions.

A cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at some point in the future. In contrast to futures contracts, forward contracts are privately negotiated and are not standardized.

A transaction consisting of a purchase or sale (often of foreign currency) with settlement to occur at a specified future date. Such a transaction will state the specific amount of the asset to be delivered at the specific time, as well as the unit price at which it will be delivered.

The amount of funds you can use as initial margin for your new positions. It’s calculated by subtracting the margin that is used by your current open positions, from your actual equity.

The activities carried out by the dealer.

For a currency trader, fundamental analysis focuses on key underlying economic and political factors to determine the direction of a currency’s value. There are a number of fundamental indicators traders may follow that reflect how an economy is changing and gleam insight into Forex market prices to come.