FOREX GLOSSARY

F

• Federal Reserve (Fed) : The Central Bank of the United States.
• Fixed Exchange Rate : An official foreign exchange rate set by fiscal authorities for one or more currencies.
• Flat / Square : To be neither too long nor too short is the same as to be flat or square. One will have a flat book if he has no positions or if all the positions gets cancel each other out.
• Floating Rate Interest : A foreign exchange rate where the price is determined by market forces. Even floating currencies are subject to intervention by the fiscal authorities. When such activity is often the float is referred as a dirty float.
• Flexible exchange rate : Exchange rates with a fixed parity against one or more foreign currencies with often revaluations, a form of managed float.
• Foreign Exchange Swap : Transaction which involves the tangible exchange of two currencies on a specific date at a rate agreed at the time of the conclusion of the contract (short leg), at a date further in the future at a rate agreed at the time of the contract (the long leg).
• Foreign Exchange : The instantaneous buying of one currency and selling of another in an over-the-counter market.
• Forward : A deal that will instigate at an agreed date in the future.
• Fundamental Analysis : Thorough analysis of economic and political information with the objective of determining future movements in a financial market.
• Federal Deposit Insurance Corporation (FDIC) : The regulatory agency liable for administering bank depository insurance in the US.
• Forward points : The points that are added to or subtracted from the spot rate to estimate the forward rates required for a forward foreign exchange transaction.
• Futures Contract : An obligation to exchange a good, service or instrument at a set price on a particular future date.
• Fast Market : Hasty movement in a Forex market caused by strong interest of buyers and sellers.
• Federal Deposit Insurance Corporation (FDIC) : The regulatory agency in charge for administering bank depository insurance in the United States.
• Federal Reserve System : The central banking system in the United States.
• Fill : The process of completing a customer's order in buying or selling a currency pair.
• Fill Price : The price at which a buying and selling order was executed.
• Financial Risk : The risk that a firm will be incapable of gathering its financial obligations.
• Flat : A Term that describes a trading book with no market exposure.
• FOMC Federal Open Market Committee : The committee that sets money supply goals in the US which have a propensity to be implemented through Fed Fund interest rates.
• Forex : Term used for referring to the foreign exchange market.
• Forex Club : Groups formed between foreign exchange dealers in the major financial centers to persuade educational and social contacts.
• Forward Price : The net price resulting from calculating the forward points and subtracting them from the existing spot rate.
• Forward Rates : Forward rates are quoted in terms of forward points that represent the difference between the forward and spot rates.
• FX : Foreign Exchange.