Forex Glossary


In the spot forex market, trades must be settled in two business days. For example, if a trader sells , Euros on Tuesday, then the trader must deliver , Euros on .

Quarterly CFDs A type of future with expiry dates every three months once per quarter. So a bid price of 1. Minimum bet The minimum bet in pounds euros or dollars per point that we will accept for that contract.

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The foreign exchange market determines the relative values of different currencies around the world. The difference between buy and sell rates. Forex, like other products, has different buy and sell rates.

Some unscrupulous websites and forex agents display alleged interbank rates on their site, only to explain in their disclaimer that this rate is not available. Always try to get a locked-in, fixed or booked rate when transferring money, otherwise the rate could change by the time the transaction goes through and you could be left out of pocket.

The transfer of money by someone working in a foreign country to his or her home country. The fees charged by a bank or foreign exchange company when you need to transfer money between two countries.

These fees can vary a great deal depending on the forex agent you choose. An international bank-to-bank funds transfer, also known as an international money transfer or forex transfer. South African news today: Your headlines in five minutes for Tuesday 2 October Liquidity — The liquidity of a currency is determined by the activity and volume of transactions.

Typically, the higher the trading volume, the easier it is to buy or sell the currency. The most liquid currencies are characterised by stable political and economic circumstances. Convertible currencies — A currency is convertible when it is exchanged freely for other currencies and its price is determined by supply and demand in the foreign exchange market.

Also a currency is fully convertible when there are no restrictions or limits on the movements and trends of deposits in the associated country. Of the total of currencies, only a small proportion are convertible. Non-convertible currencies are closely related to emerging markets, as the restrictions are imposed as protection against high volatility. One example of a non-convertible currency is the Nigerian Naira. Beneficiary — A person or legal entity who receives the money from an international payment.

Credit Transfer — A method of performing an electronic transfer of funds between banks or bank accounts. The average daily value of transferred funds is around USD2.