Foreign exchange-Currency terminology

Foreign exchange

What is really hard to understand the terminology, as a newbie in Forex trading by dealers in the normal course of business. This article attempts to explain only in general terms in operation
Arbitration – purchase and sale of the same currency or instrument, at the same time in different markets, to win price difference.
Compared to base currency – the currency of reference against which or in other currencies. The used primary base currency is the dollar of the United States (USD).

Best-effort – an executable order the best possible price on the distributors or dealer discretion.

Bid, buy price, from which a buyer ready, is nearby.

Broker – a person or a company that conforms to and run on and sale of Commission orders. The prices are not runners by the owners.

Cable – British pound sterling or sterling (British pound) is sometimes referred to as the cable in the jargon of the market.

Cross rate – this is the exchange rate between two currencies, that do not use the base currency.

Deal direct negotiations – a process whereby the dealer directly with each other without a broker.

Position limit daylight – borders, by prudent monetary position, which can be carried out by an operator during regular trading hours.

An exotic currency – higher or a coin of lesser importance, which has low liquidity and limited traffic.

Next winner – integration of Exchange after date of delivery due.

Kiwi – New Zealand dollar, in the jargon of the market

LIBOR – London interbank bid. Art, in which a Bank lends, is usually set on a daily basis, 11:00 GMT.

Currency – euro, Marco German, Swiss francs, pounds sterling and Japanese yen.

Market maker – dealer, which constantly provides two way prices, a bid and an offer.

Offer – the price to sell a seller.

Called PIP – term in the passage of the markets of foreign exchange against the smallest incremental move an exchange rate can make.

Conditions of the contribution of America – a date which corresponds to the number of units of the United States dollar coin.

Conditions of the European contribution – an event that corresponds to the number of currency units per U.S. dollar.

I try to spot – agreement of Exchange, where one of the parties a certain currency against receiving a certain other currencies on the basis of an agreed rate on the other hand usually within 2 working days to deliver

The next item – agreement of Exchange with maturity of one day more than the date of cash.

Replace agreement – an agreement of the currencies, which consists of a simultaneous purchase and sale of different periods of ripening with the same party.

Connection to Tom – on the next morning, an agreement of Exchange, the tires on the previous day for what the maturity is an agreement the next day. (Foreign exchange)

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