Fast Market
Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.
Fed Fund Rate
The interest rate on Fed funds. This is a closely watched short term interest rate as it signals the Feds view as to the state of the money supply.
Fed
Abbreviation for Federal Reserve System of the United States. In the domestic context Fed usually refers to its board of governors or to the Federal Reserve Bank of New York; in the foreign exchange context it usually refers to the latter.
Federal Open Market Committee (FOMC)
Key decision making committee of the Federal Reserve System. The minutes of its meetings are published about a month later, and show the current stance of US monetary policy.
Federal Reserve System
The central banking system in the United States.
Figure
Dealers' slang meaning "00" and denoting an exchange rate level. If the D-mark is quoted at 1.7300/1.7310 per dollar the rate may be quoted "figure/ten" (leaving 1.73 understood).
Fill or Kill
An order which must be entered for trading, normally in a pit three times, if not filled is immediately canceled.
Fisher Effect
The relationship that exists between interest rates and exchange rate movements, so that in an ideal situation interest rate differentials would be exactly off set by exchange rate movements. See interest rate parity.
Fixed Exchange Rate
Official rate set by monetary authorities for one or more currencies. In practice, even fixed exchange rates are allowed to fluctuate between definite upper and lower intervention points.
Flat / Square
Where a client has not traded in that currency or where an earlier deal is reversed thereby creating a neutral (flat) position.
Flexible Exchange Rate
Exchange rates with a fixed parity against one or more currencies with frequent revaluation's. A form of managed float.
Floating Exchange Rate
When the value of a currency is decided by supply and demand.
FOMC
Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.
Foreign Exchange
The purchase or sale of a currency against sale or purchase of another.
Forex
An abbreviation for foreign exchange, also FX.
Forex Club
Groups formed in the major financial centers to encourage educational and social contacts between foreign exchange dealers, under the umbrella of Association Cambiste International.
Forward Margins
Discounts or premiums between spot rate and the forward rate for a currency. Normally quoted in points.
Forward Operations
Foreign exchange transactions, on which the fulfillment of the mutual delivery obligations is made on a date later than the second business day after the transaction was concluded.
Forward Outright
A commitment to buy or sell a currency for delivery on a specified future date or period. The price is quoted as the Spot rate minus or plus the forward points for the chosen period.
Forward Points
The interest rate differential between two currencies expressed in exchange rate points. These forward points are added to or subtracted from the spot rate to give the forward or outright rate.
Forward Rate
The rate at which a foreign exchange contract is struck today for settlement at a specified future date.
Free Reserves
Total reserves held by a bank less the reserves required by the authority.
Front Office
The activities carried out by the dealer , normal trading activities.
Fundamental Analysis
Analysis based on economic factors.
Fundamentals
The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
Futures
Contracts giving the obligation to buy or sell an asset at a set date in the future.
FX
Foreign Exchange. |
