Forex Glossary

Manufacturing Production

Measures the total output of the manufacturing aspect of the Industrial Production figures. This data only measure the 13 sub sectors that relate directly to manufacturing. Manufacturing makes up approximately 80% of total Industrial Production.

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.

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 Risk

Exposure to changes in market prices.

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.