Forex Signals from the Leading Forex Alert Provider! :: Forex Signals

Same Day Transaction - A transaction that matures on the day the transaction takes place.

Samurai Bond - A yen-denominated bond issued in Tokyo by a non-Japanese company.

Seigniorage - The difference between the value of money and the cost to produce it.

Selling Rate - Rate at which a bank is willing to sell foreign currency.

Settlement Date - The date by which an executed order must be settled by the transference of instruments or currencies and funds between buyer and seller.

Settlement Risk - Risk associated with the non-settlement of the transaction by the counter party.

Short Position - A market position where the Client has sold a currency he does not already own. Normally expressed in base currency terms, example, short Dollars (long Euro).

Short sale - The sale of a specified amount of currency not owned by the seller at the time of the trade. Short sales are usually made in expectation of a decline in the price.

Short-Term Interest Rates - Normally the 90-day rate.

Sidelined - A major currency that is lightly traded due to major market interest in another currency pair.

Soft Market - More potential sellers than buyers, which creates an environment where rapid price falls are likely.

Soveriegn Bond - A debt security issued by a national government and denominated in a foreign currency.

Soveriegn Risk - The risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts.

Special Drawing Rights - SDR - An international type of monetary reserve currency, created by the International Monetary Fund (IMF) in 1969, which operates as a supplement to the existing reserves of member countries. Created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts, SDRs are designed to augment international liquidity by supplementing the standard reserve currencies.

Speculator - A person who trades (i.e. derivatives, commodities, bonds, equities or currencies) with a higher-than-average risk, in return for a higher-than-average profit potential. Speculators take large risks, especially with respect to anticipating future price movements, or gambling, in the hopes of making quick, large gains.

Spot - The most common foreign exchange transaction. Spot or spot date refers to the spot transaction value date that requires settlement within two business days, subject to value date calculation.

Spot Exchange Rate - The rate of a foreign-exchange contract for immediate delivery. Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency.

Spot Next - The overnight swap from the spot date to the next business day.

Spot Price/Rate - The price at which the currency is currently trading in the spot market.

Spread - The difference in prices between bid and offer rates.

Square - Purchase and sales are in balance and thus the dealer has no open position.

Squawk box - A speaker connected to a phone often used in broker trading desks.

Squeeze - Action by a central bank to reduce supply in order to increase the price of money.

Stable Market - An active market which can absorb large sales or purchases of currency without major moves.

Standard - A term referring to certain normal amounts and maturities for dealing.

Sterilization - Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market.

Sterilized Intervention - A method used by monetary authorities to equalize the effects of foreign-exchange transactions on the domestic monetary base by offsetting the purchases or sales of domestic assets.

Stop Loss Order - Order given to ensure that, should a currency weaken by a certain percentage, a short position will be covered even though this involves taking a loss. Realize profit orders are less common.

Support Levels - When an exchange rate depreciates or appreciates to a level where - Technical analysis techniques suggest that the currency will rebound, or not go below; - the monetary authorities intervene to stop any further downward movement.

Swap - The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.

Swap Price - A price as a differential between two dates of the swap.

Swissy - Market slang for Swiss franc.