Forex Glossary

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. Adjustment – Official action normally by either change in the internal economic policies to correct a payment

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 ex

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.