Glossary

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A

Adjustment
Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.

American Option
An option which may be exercised at any valid business date through out the life of the option.

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 Price
The price at which a currency pair or security is offered for sale; the quoted price at which an investor can buy a currency pair. This is also known as the 'offer', 'ask price', and 'ask rate'.

Asset
In the context of foreign exchange is the right to receive from a counterparty an amount of currency either in respect of a balance sheet asset (e.g. a loan) or at a specified future date in respect of an unmatched forward or spot deal.

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.

Aussie
The Australian Dollar