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Day Trading -
Opening and closing the same position or positions
within the same trading session.
Dealer -
One who acts as a principal or counterpart to a transaction;
places the order to buy or sell.
Deficit -
A negative balance of trade (or payments);
expenditures are greater than income/revenue.
Delivery -
An actual delivery where both sides transfer
possession of the currencies traded.
Deposit -
The borrowing and lending of cash. The rate that money
is borrowed/lent at is known as the deposit rate (or depo rate). Certificates of
Deposit (CD`S) are also tradable instruments.
Depreciation -
A decline in the value of a currency due to market
forces.
Derivatives -
Trades that are constructed or derived from another
security (stock, bond, currency, or commodity). Derivatives can be both exchange
and non-exchange traded (known as Over the Counter or OTC). Examples of
derivative instruments include Options, Interest Rate Swaps, Forward Rate
Agreements, Caps, Floors and Swap options.
Devaluation -
The deliberate downward adjustment of a currency`s
value versus the value of another currency normally caused by official
announcement.
Economic
Indicator - A statistic that indicates current
economic growth and stability issued by the government or a non-government
institution (i.e. Gross Domestic Product (GDP), Employement Rates, Trade
Deficits, Industrial Production, and Business Inventories).
Efficient
Market - A market in which the current price reflects
all available information from past prices and volumes.
End Of Day (or
Mark to Market) - Traders account for their positions
in two ways: accrual or mark-to-market. An accrual system accounts only for cash
flows when they occur, hence, it only shows a profit or loss when realized. The
mark-to-market method values the trader`s book at the end of each working day
using the closing market rates or revaluation rates. Any profit or loss is
booked and the trader will start the next day with a net position.
Estimated
Annual Income - Projected yearly earnings.
Euro -
The currency of the European Monetary Union (EMU) which
replaced the European Currency Unit (ECU).
European
Central Bank - The Central Bank for the European
Monetary Union.
European
Monetary Unit - The principal goal of the EMU is to
establish a single European currency called the Euro, which will officially
replace the national currencies of the member EU countries in 2002. Currently,
the Euro exists only as a banking currency and for paper financial transactions
and foreign exchange. The current members of the EMU are Germany, France,
Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain
and Portugal.
Exchange Rate
Risk - See Currency Risk.
Economic
Exposure - The risk on a company’s cash flow stemming
from foreign exchange fluctuations.
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