Forex Terms Letters G,H and I

A-C

D-F

G-I

J-L

M-O

P-S

T-Z

Forex Terms beginning with letter M

M0 : Cash in circulation. Only used by the UK.
M1 : Cash in circulation plus demand deposits at commercial banks. There are variations between the precise definitions used by national financial authorities.
M2 : Includes demand deposits, time deposits and money market mutual funds excluding large CDs.
M3 : In the UK it is M1 plus public and private sector time deposits and sight deposits held by the public sector.
M4 : In the US it is M2 plus negotiable CDs.
Maintenance: A set minimum margin that a customer must maintain in his margin account
Make a Market : A dealer is said to make a market when he quotes both the bid and offer prices at which he stands ready to buy and sell.
Managed Float : When the monetary authorities intervene regularly in the market to stabilize the rates or to push the exchange rate in a required direction. Also called a dirty float.
Margin : Collateral that the holder of a position in securities, options, Forex or futures contracts, has to deposit to cover the credit risk of his counterparty. Other definitions to MARGIN, used in other areas are: (1) Difference between the buying and selling rates, also used to indicate the discount or premium between spot or forward. (2) For options, the sum required as collateral from the writer of an option. (3) For futures, a deposit made to the clearing house on establishing a futures position account.  (4) The percentage reserve required by the US Federal Reserve to make an initial credit transaction.
Margin Account: An account that allows leverage buying on credit and borrowing on currencies already in the account. Buying on credit and borrowing are subject to standards established by the firm carrying the account. Interest is charged on any borrowed funds and only for the period of time that the loan is outstanding.
Margin Call : A demand for additional funds to cover positions
Margin: The amount of money needed to maintain a position.
Marginal Risk : The risk that a customer goes bankrupt after entering into a forward contract. In such an event the issuer must close the commitment running the risk of having to pay the marginal movement on the contract.
Mark - To - Market : The profits and/or losses are tallied at the end of the session according to the closing prices of the security and the account is "marked to the market" daily. The party will be called upon to make good the losses if there has been an adverse movement in the prices and it can book the profits in case there has been a favorable movement in the prices.
Market Close: This refers to the time of day that a market closes. In the 24 hour-a-day foreign exchange market, there is no official market close. 5:00 PM EST is often referred to and understood as the market close because value dates for spot transactions change to the next new value date at that time.
Market Order: A customer order for immediate execution at the best price available when the order reaches the marketplace.
Market Rate: The current quote of a currency pair.
Market Risk: The risks that occur when general market pressures cause the value of an investment to fluctuate.
Market Value : Market value of a forex position at any time is the amount of the domestic currency that could be purchased at the then market rate in exchange for the amount of foreign currency to be delivered under the forex Contract.
Market-Maker: A person or firm that provides liquidity making two-sided prices (bids and offers) in the market.
Mark-to-Market: The theoretical value of an open position at the current market price.
Maturity : Date for settlement of the transaction which is decided at the time of entering into the contract.
Maturity: The date on which payment of a financial obligation is due.
MITI : Japanese Ministry of International Trade & Industry.
MM : Money Markets
Momentum: The tendency of a currency pair to continue movement in a single direction.
Money Supply : The amount of money in the economy, which can be measured in a number of ways.
Mutual fund : An open-end investment company. Equivalent to unit trust.

Forex Terms beginning with letter N

Nickel : US term for five basis points.
Nostro Account : A foreign currency current account maintained with another bank. The account is used to receive and pay currency assets and liabilities denominated in the currency of the country in which the bank is resident.
Not Held Basis Order : An order whereby the price may trade through or better than the client's desired level, but the principal is not held responsible if the order is not executed.
Note : A financial instrument consisting of a promise to pay rather than an order to pay or a certificate of indebtedness.

Forex Terms beginning with letter O

OCO-One Cancels the Other Order: A combination of two orders in which the execution of either one automatically cancels the other.
Offer : The rate at which a dealer is willing to sell the base currency.
Official Settlements Account : A US balance of payments measure based on movement of dollars in foreign official holdings and US reserves. Also referred to as reserve transaction account.
Off-Shore : The operations of a financial institution which although physically located in a country, has little connection with that country's financial systems. In certain countries a bank is not permitted to do business in the domestic market but only with other foreign banks. This is known as an off shore banking unit.
Old Lady : Old lady of Threadneedle Street, a term for the Bank of England.
One Cancels Other Order : Where the execution of one order automatically cancels a previous order also referred to as OCO or 'One cancels the other'.
Open Market Operations : The central bank operations in the markets to influence exchange and interest rates.
Open Order: Buy or sell order that remains in force until executed or cancelled by the customer.
Open Position : Any deal which has not been settled by physical payment or reversed by an equal and opposite deal for the same value date. It can be termed as a high risk, high return proposition.
Option : A contract conferring the right but not the obligation to buy (call) or to sell (put) a specified amount of an instrument at a specified price within a predetermined time period.
Option Class : All options of the same type - calls or puts -listed on the same underlying instrument.
Option Series : All options of the same class having the same exercise/strike price and expiration date.
Order: A customer's instructions to buy or sell currencies.
Out-of-the-Money : A put option is out-of-the-money if the exercise/strike price is below the price of the underlying instrument. A call option is out-of-the money if the exercise/strike price is higher than the price of the underlying instrument.
Outright Deal : A forward deal that is not part of a swap operation.
Outright Forward : Foreign exchange transaction involving either the purchase or the sale of a currency for settlement at a future date.
Outright Rate : The forward rate of a foreign exchange deal based on spot price plus forward discount/premium.
Over The Counter (OTC) : A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange trading floor. These markets have not been very popular because of the risks both the parties face in case the other party fails to honour the contract. They were never part of the Stock Exchange since they were seen as "unofficial".
Overheated (Economy) : Is an economy on a high growth rate trajectory placing pressure on the production capacity resulting in increased inflationary pressures and higher interest rates.
Overnight Limit : Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmonitored exposures.
Overnight Position: Trader's long or short position in a currency at the end of a trading day.

Forex Terms: Back<<>>Forward

If you came directly to this page from the search engines, then I encourage your to goto Forex Trading Tutorial. Get started with Trading Basics Menu. You will gain much by starting here. If you have read everything on the Forex Basics menu, then it is time to get the beaf of my trading system by heading to menu Forex Trading System