Glossary
F
Federal Reserve (Fed)
The Central Bank of the United States.
First In First Out (FIFO)
Open positions are closed according to the FIFO accounting rule. All positions opened within a particular currency pair are liquidated in the order in which they were originally opened.
Fill
The process of completing a customer's order to buy or sell a currency pair.
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. Often the fixed exchange rate permits fluctuation within a band.
Flat
Term describing a trading book with no market exposure.
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
Term commonly used when referring to the foreign exchange market.
Forward
The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved
Forward Points
The pips added to or subtracted from the current exchange rate to calculate a forward price.
Forward Rates
The net price resulting from calculating the forward points and subtracting them from the existing spot rate. This is the rate at which a currency can be purchased or sold for delivery in the future.
FRA - Forward Rate Agreements
FRAs are transactions that allow one to borrow/lend at a stated interest rate over a specific time period in the future.
Fundamental Analysis
Analysis of economic and political information with the objective of determining future movements in a financial market.
Futures Contract
An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts - ETC), versus forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
FX
Foreign Exchange. | 
