A

Accrual - The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals , over the period of each deal.

Adjustment - Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.

Annuity - any annually fixed series of payments or proceeds during some number of years.

Appreciation - A currency is said to 'appreciate' when it strengthens in price in response to market demand.

Arbitrage - The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.

Ask (Offer) Price - The price at which the market is prepared to sell a specific Currency in a Foreign Exchange Contract or Cross Currency Contract. At this price, the trader can buy the base currency. In the quotation, it is shown on the right side of the quotation. For example, in the quote USD/CHF 1.2627/32, the ask price is 1.2632; meaning you can buy one US dollar for 1.2632 Swiss francs.

Assets – any property owned by a person or firm

At Best - An instruction given to a dealer to buy or sell at the best rate that can be obtained.

At or Better - An order to deal at a specific rate or better.

Aussie – Dealer slang for the Australian dollar and currency pair AUD/USD

B

Balance of Trade - The value of a country's exports minus its imports.

Balance – total financial outcome of all complete transactions and deposit/withdrawal of funds from trade account operations. In Meta Trader this name is used to indicate the balance of trade account without counting open positions, so it is the startup mode of balance before opening of trade positions and the actual balance if there are no open positions.

Bar Chart - A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar, the opening price, which is marked with a little horizontal line to the left of the bar, and the closing price, which is marked with a little horizontal line of the right of the bar.

Base Currency - The first currency in a Currency Pair. It shows how much the base currency is worth as measured against the second currency. For example, if the USD/CHF rate equals 1.2615 then one USD is worth CHF 1.2615 In the FX markets, the US Dollar is normally considered the 'base' currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar.

Bear - a speculator who sells in anticipation of falling prices to make a profit on repurchase.

Bear Market - A market distinguished by declining prices.

Bid Price - The bid is the the price at which the market is prepared to buy a specific Currency in a Foreign Exchange Contract or Cross Currency Contract. At this price, the trader can sell the base currency. It is shown on the left side of the quotation. For example, in the quote USD/CHF 1.2627/32, the bid price is 1.2627; meaning you can sell one US dollar for 1.2627 Swiss francs.

Bid/Ask Spread - The difference between the bid and offer price. Big Figure Quote - Dealer expression referring to the first few digits of an exchange rate. These digits are often omitted in dealer quotes.. For example, a USD/JPY rate might be 117.30/117.35, but would be quoted verbally without the first three digits i.e.

BOC – Bank of Canada, Canada’s Central Bank

BOE – Bank of England, England’s Central Bank

BOJ – Bank of Japan, Japan’s Central Bank

Book - In a professional trading environment, a 'book' is the summary of a trader's or desk's total positions.

Breakout - A movement in the price out of an established trading range either above a resistance level or below a support level.

Broker - An individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a 'dealer' commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.

Bretton Woods Agreement of 1944 - An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US $35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies.

Bull Market - A market distinguished by rising prices.

Bundesbank - Germany's Central Bank.

C

Cable - The British pound/US Dollar exchange rate GBP/USD. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800's.

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.

Cash flow - A revenue or expense stream that changes a cash account over a given period.

Cash Market - The market in the actual financial instrument on which a futures or options contract is based.

Central Bank - A government or quasi-governmental organization that manages a country's monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank.

CFD – Contracts for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.

Change – difference between actual price and price closed the previous trading day

Chart - it is the graphic representation of price movements. The main types of charts are Tick chart, Line chart, Bar chart, Candlesticks chart, Point and figures chart, Volumes chart.

Chartist - An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader.

Choppy market - A stock market condition whereby prices swing up and down considerably but with no resulting overall price movement in either direction.

Cleared Funds - Funds that are freely available, sent in to settle a trade.

Clearing - The process of settling a trade.

Close Order – closing of actual transaction

Closed Position - Exposures in Foreign Currencies that no longer exist. The process to close a position is to sell or buy a certain amount of currency to offset an equal amount of the open position. This will 'square' the postion.

Contagion - The tendency of an economic crisis to spread from one market to another. In 1997, political instability in Indonesia caused high volatility in their domestic currency, the Rupiah. From there, the contagion spread to other Asian emerging currencies, and then to Latin America, and is now referred to as the 'Asian Contagion'.

Collateral - Something given to secure a loan or as a guarantee of performance.

Commission - A transaction fee charged by a broker.

Confirmation - A document exchanged by counterparts to a transaction that states the terms of said transaction.

Consolidation - the movement of an asset's price within a well-defined pattern or barrier of trading levels.

Contract - The standard unit of trading.

Convertible Currency - a currency that can be exchanged for another without special permission. Today, most of the currencies which were previously unconvertible are now convertible.

Correction - A reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index. Corrections are generally temporary price declines, interrupting an uptrend in the market or asset. To measure the correction they use normally Fibonacci levels - 38.2%, 50% and 61.8%

Cost – any expenditures during the accounting period and represented on a level with sales proceeds for the same period.

Counter Currency - The second listed Currency in a Currency Pair.

Counterparty - One of the participants in a financial transaction.

Country Risk - Risk associated with a cross-border transaction, including but not limited to legal and political conditions.

Creditworthiness - A creditor's measure of an individual's or company's ability to meet debt obligations.

Crossover - the point on a stock chart when a security and an indicator intersect. Some of the indicators that use crossovers are "moving average" and "Bollinger bands".

Cross Currency Pairs or Cross Rate - A foreign exchange transaction in which one foreign currency is traded against a second foreign currency. For example; EUR/GBP

Currency Option - A contract that grants the holder the right, but not the obligation, to buy or sell currency at a specified exchange rate during a specified period of time.

Currency Swap - A swap that involves the exchange of principal and interest in one currency for the same in another currency.

Currency Swaption - the buyer gains the right but not the obligation to enter into a specified swap agreement with the issuer on a specified future date.

Currency Symbols AUD - Australian Dollar CAD - Canadian Dollar EUR - Euro JPY - Japanese Yen GBP - British Pound CHF - Swiss Franc

Currency - Any form of money issued by a government or central bank and used as legal tender and a basis for trade.

Currency Pair - The two currencies that make up a foreign exchange rate. For Example, EUR/USD

Currency Risk - the probability of an adverse change in exchange rates.

Currency Warrant - currency warrants are priced the same way as currency options and allows holders the right to exchange an amount of one currency into another currency at a specified exchange rate before or on a specified date.

D

Day Order - Any order to buy or sell a security that automatically expires if not executed on the day the order is placed.

Day Trader - Speculators who take positions in commodities which are then liquidated prior to the close of the same trading day.

Day Trading - The purchase and sale (or the short sale and cover) of the same security on the same day.

Dealer - An individual or firm that 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 trade 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.

Dealing - non-cash currency trading.

Dealing center - company that provides access to the money market.

Deficit - A negative balance of trade or payments.

Deflation - A general decline in prices, often caused by a reduction in the supply of money or credit.

Delivery - An FX trade where both sides make and take actual delivery of the currencies traded.

Depreciation - A fall in the value of a currency due to market forces.

Derivative - A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.

Devaluation - The deliberate downward adjustment of a currency's price, normally by official announcement.

Direct Quote - A foreign exchange rate quoted as the domestic currency per unit of the foreign currency.

Divergence - When the price of an asset and an indicator, index or other related asset move in opposite directions.

Diversification - A risk management technique that mixes a wide variety of investments within a portfolio.

Dollar Rate - The amount of foreign currency quoted against one US Dollar. Some currencies are quoted in the amount of US Dollars per foreign currency unit, like the British Pound.

Downtick - The sale of a security (usually an equity or stock) at a price lower than the previous one.

Double Top - a technical analysis’ figure at which the rate rose on some level twice, and then again fell.

Double Bottom - a technical analysis’ figure at which the rate fell on some level twice, and then again rose.

Downtrend - Describes the price movement of a financial asset when the overall direction is downward. A formal downtrend occurs when each successive peak and trough is lower than the ones found earlier in the trend.

E

Economic Indicator - A government issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc.

End Of Day Order (EOD) - An order to buy or sell at a specified price. This order remains open until the end of the trading day which is typically 5PM ET.

EMS - European Monetary System - An arrangement in the 1970s and 1980s where many European countries linked their currencies to prevent large fluctuations in value.

Equity - the secure part of the client account, considering the open positions, bound with the balance and floating rate (profit/loss) by the following formula: Balance + Floating rate + Swap, i.e. the funds on the client account less the current amount for the open positions, plus the current earnings for the open positions.

Exchange rate - the exchange rates between two currencies specify how much one currency is worth in terms of the other.

European Monetary Union (EMU) - The principal goal of the EMU is to establish a single European currency called the Euro, which will officially replace the national currencies of the member EU countries in 2002. On Janaury1, 1999 the transitional phase to introduce the Euro began. The Euro now exists as a banking currency and paper financial transactions and foreign exchange are made in Euros. This transition period will last for three years, at which time Euro notes an coins will enter circulation. On July 1,2002, only Euros will be legal tender for EMU participants, the national currencies of the member countries will cease to exist. The current members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.

EURO - the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU).

European Central Bank (ECB) - the Central Bank for the new European Monetary Union.

Exchange Rate Risk - The risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced.

F

Federal Deposit Insurance Corporation (FDIC) - The regulatory agency responsible for administering bank depository insurance in the US.

Federal Reserve (Fed) - The Central Bank for the United States.

First In First Out (FIFO) - Open positions are closed according to the FIFO accounting rule. All positions opened within a particular currency pair are liquidated in the order in which they were originally opened.

Fibonacci levels - the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.

Figure - price change for 100 pips. For example, price change EUR/USD from 1.3770 to 1.3870 – this means figure increase.

Fixed Exchange Rate - Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band.

Flat/square - Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.

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

Floating Rate Interest - An interest rate that moves up and down based on the changes of an underlying interest rate index.

Foreign Exchange - (Forex, FX) - the simultaneous buying of one currency and selling of another.

Foreign Exchange Swap - An agreement between two parties to exchange two currencies at a certain exchange rate at a certain time in the future.

Forward - The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.

Forward operations – operations with the pre-specified exchange rate for a foreign exchange contract settling at some agreed future date.

Forward Points - The pips added to or subtracted from the current exchange rate to calculate a forward price.

Free Margin - the funds, which are not used for the security of the opened positions. It is calculated by the formula: Free Margin = Equity – Margin.

Fundamental Analysis - Analysis of economic and political information with the objective of determining future movements in a financial market.

Futures Contract - An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts - ETC), versus forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.

FX - Foreign Exchange.

G

Gaps - A break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between.

Going Long - The purchase of a stock, commodity, or currency for investment or speculation.

Going Short - The selling of a currency or instrument not owned by the seller.

Greenback - A slang term for U.S. paper dollars.

Gross Domestic Product - Total value of a country's output, income or expenditure produced within the country's physical borders.

Gross National Product - Gross domestic product plus income earned from investment or work abroad.

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.

H

Hedge - A position or combination of positions that reduces the risk of your primary position.

Hit the bid - Acceptance of purchasing at the offer or selling at the bid.

High/Low – the highest/lowest price for the trading instrument during the trading day.

I

Indirect Quote - one unit of national currency represents in terms of a foreign currency.

Initial Margin - The minimum Margin Balance necessary to establish a NEW Open Position.

Intraday – trade aiming to get a profit during the trading day.

Inflation - An economic condition whereby prices for consumer goods rise, eroding purchasing power. Initial Margin - The initial deposit of collateral required to enter into a position as a guarantee on future performance.

Instant Execution – quotes are available to clients without their request. A client is able to execute the order for trading operation immediately.

Interbank Rates - The Foreign Exchange rates at which large international banks quote other large international banks. Intervention - Action by a central bank to effect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.

K

Kiwi - Slang for the New Zealand dollar.

L

Leading Indicators - Statistics that are considered to predict future economic activity.

Leverage - Also called margin. The ratio of the amount used in a transaction to the required security deposit.

LIBOR - The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.

Limit order - An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 117.00/05, then a limit order to buy USD would be at a price below 102. (ie 116.50)

Liquidation - The closing of an existing position through the execution of an offsetting transaction.

Liquidity - The ability of a market to accept large transaction with minimal to no impact on price stability.

Long position - A position that appreciates in value if market prices increase. When the base currency in the pair is bought, the position is said to be long.

Lot - A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.

Loss - the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.

M

Majors - The four Forex pairs which are considered to be the most heavily traded in the forex market. The four major pairs are: EUR/USD, USD/JPY, GBP/USD, USD/CHF.

Margin - The required equity that an investor must deposit to collateralize a position.

Margin Call - A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the customer.

Margin Level - determines the condition of an account. Calculated according to the formula: (Equity / Margin) * 100%.

Market Maker - A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument.

Market order - A Market Order is an order to buy or sell a chosen currency pair at the current market price. A Market Order will be executed at the price displayed at the moment user clicks the “Place” button, but only if the currency price remains within a price range (for example, 5 pips) set by the FXDD.

Market Risk - Exposure to changes in market prices.

Margin trading - using borrowed money to buy securities, with the expectation of increasing profits. Margin trading can bring big returns, but is also risky.

Market users - major banks and financial firms that pledge to provide liquidity by accepting the other side of a trade in a currency, security or futures contract.

Mark-to-Market - Process of re-evaluating all open positions with the current market prices. These new values then determine margin requirements.

Maturity - The date for settlement or expiry of a financial instrument.

Momentum - the measure of the currency's ability to move in the given direction.

N

Net Position - The amount of currency bought or sold which have not yet been offset by opposite transactions.

Nanolot - A nanolot is 1/1000 the size of a standard lot. One nanolot would be 100 units of the quote currency ($100 for xxxUSD pairs). For nanolots of xxxUSD pairs, a one pip move is worth $0.01 (1 cent).

O

Obvious mistake - opening/closing client positions or executing client order at a price that greatly differs from price quoted per instrument in present flow quoting at the moment of processing. Or some other dealer activity or inactivity that deals with mistaken determination of market prices at the present moment.

Offer (ask) - The rate at which a dealer is willing to sell a currency.

Offsetting transaction - A trade with which serves to cancel or offset some or all of the market risk of an open position.

One Cancels the Other Order (OCO) - A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.

Open order - An order that will be executed when a market moves to its designated price. Normally associated with Good 'til Cancelled Orders.

Open position - An active trade with corresponding unrealized P&L, which has not been offset by an equal and opposite deal.

Over the Counter (OTC) - Used to describe any transaction that is not conducted over an exchange.

Overbought - at this event the market price has risen too steeply and too fast in relation to underlying fundamental factors. Opposite of Oversold.

Overnight Position - A trade that remains open until the next business day.

Order - An instruction to execute a trade at a specified rate.

Oversold - A situation in the market after significant downturn of the Forex rate.

Outright forward - The purchase or sale of a forward foreign exchange contract that locks in the rate and delivery date.

P

Pips - The smallest unit of price for any foreign currency. Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points. Political Risk - Exposure to changes in governmental policy which will have an adverse effect on an investor's position.

Point and figures chart - A chart that plots day-to-day price movements without taking into consideration the passage of time. Point and figure charts are composed of a number of columns that either consist of a series of stacked Xs or Os. A column of Xs is used to illustrate a rising price, while Os represent a falling price.

Position - The netted total holdings of a given currency.

Premium - In the currency markets, describes the amount by which the forward or futures price exceed the spot price.

Price Transparency - Describes quotes to which every market participant has equal access.

Profit /Loss or "P/L" - The actual "realized" gain or loss resulting fromtrading activities on Closed Positions, plus the theoretical "unrealized" gain or loss on Open Positions that have been Mark-to-Market.

Q

Quote - An indicative market price, normally used for information purposes only.

R

Rally - A recovery in price after a period of decline.

Range - The difference between the highest and lowest price of a future recorded during a given trading session.

Rate - The price of one currency in terms of another, typically used for dealing purposes.

Resistance - A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.

Requote - The price changed between the time you send the order and the time the broker tried to execute it. You can either cancel the order or accept a worse price. This can happen with any broker during fast moving market conditions.

Retracement - A level of possible correction of the Forex rate counted in a technical analysis after the growth or falling.

Revaluation - An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.

Risk - Exposure to uncertain change, most often used with a negative connotation of adverse change.

Risk Management - the employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.

Roll-Over - Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.

Round trip - Buying and selling of a specified amount of currency.

S

Scalping - earning profit on minimal changes of the Forex rate.

Settlement - The process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.

Short Position - An investment position that benefits from a decline in market price. When the base currency in the pair is sold, the position is said to be short.

Slippage - A situation when Stop-order is carried out at more worst Forex rate, than it has been reserved at its exhibiting to the broker.

Spike - A larger than usual price movement. It can be caused by a financial institution entering an erroneous price that appears as a valid price, even though it gets corrected almost immediately.

Spot - Spot or Spot date refers to the spot transaction value date that is two business days from the deals Trade Date. In instances where there is holiday, weekend or other day when the banks in the countries represented by the currencies in the currency pair are closed, the spot date will be adjusted forward to the next value date where the banks are open. In the case of US Dollar versus the Canadian dollar, the spot date is 1 business day forward from the Trade Date.

Spot exchange rate - The rate of a foreign-exchange contract for immediate delivery. Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency.

Spot Price - The current market price. Settlement of spot transactions usually occurs within two business days.

Spread - The difference between the bid and offer prices.

Square - Purchase and sales are in balance and thus the dealer has no open position.

Sterling - slang for British Pound.

Stop Limit - this type of order goes into force as soon as there is a trade at the specified price.

Stop order - An order to buy or to sell a currency when the currency's price reaches or passes a specified level.

Stop Loss Order - Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.

Stop Out Order - A situation where a stock price decreases and, consequently, an investor's stop order is executed.

Support - it is a spot on a chart where the buying of currency is sufficient to halt a price decline.

Support Levels - A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.

Swap - A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.

Swap points - At the time of the rollover, funds are either added or deducted from the client`s account using swap points. Swap point prices are based on the interest rate differential between the two currencies.

Swissy - Market slang for Swiss Franc.

T

Take-profit - A customer's instructions to buy or sell a currency pair which, when executed, will result in the reduction in the size of the existing position and show a profit on said position.

Technical Analysis - An effort to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open interest, etc.

Tick - A minimum change in price, up or down.

Tick chart - Tick charts display a certain number of trades before printing a new bar chart. Unlike other charts which are based on time, tick charts are solely based on trading activity. Tick charts are a favorite for day traders who need to make quick trading decisions and do not have the time to wait for a 5-minute bar to close before making the call to sell their stock. Tick charts can provide a wealth of information about the details of the trading activity, but it can also create a lot of noise.

Tomorrow Next (Tom/Next) - Simultaneous buying and selling of a currency for delivery the following day.

Trading platform - A software application where a client can give an order to execute a transaction on that customers behalf. FXDD Trader and MetaTrader are both examples of trading platforms.

Trailing-stop - Similar to a stop loss in that it limits potential losses in an open order. But unlike a simple stop loss where the threshold does not change, a trailing stop loss can be instructed to automatically adjust the limit price closer to the market price when the market price moves in your favor.

Transaction Cost - the cost of buying or selling a financial instrument.

Transaction Date - The date on which a trade occurs.

Trend - The current direction of the market, whether up or down or sideways (which is sometimes referred to as non-trending or trading market).

Trendline - A line that is drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame.

Turnover - The total money value of all executed transactions in a given time period; volume.

Two-Way Price - When both a bid and offer rate is quoted for a FX transaction.

U

Unrealized Gain/Loss - The theoretical gain or loss on Open Positions valued at current market rates, as determined by the broker in its sole discretion. Unrealized Gains' Losses become Profits/Losses when position is closed.

Uptick - a new price quote at a price higher than the preceding quote.

Uptrend -Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend.

Uptick Rule - In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.

US Prime Rate - The interest rate at which US banks will lend to their prime corporate customers.

V

Value Date - The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.

Variation Margin - Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements.

Volatility (Vol) - A statistical measure of a market's price movements over time.

Volumes chart - Day trading charts can be based upon several different criteria, with the most popular being time, ticks (number of trades), volume (number of contracts), and price range. All fourtypes of charts use the same market information (price, volume, etc.), but they display the information slightly differently.

W

Whipsaw - slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.

Y

Yard - In Forex trading jargon, a yard means a billion units.

Z

ZEW - Zentrum fur Europaische Wirtschaftsforschung (Center for European Economic Research) - Issues monthly economic reports for Germany, Switzerland, and the Eurozone.