Glossary

Any 'major' currency that investors have confidence in.

Trading strategy implemented with the goal of reducing risk from adverse price movements that surrounds one's primary position. Typically involves taking an offsetting position in another security/currency, and/or using derivatives to limit downside.

Volatility in the underlying asset price, rate or return over a specific period in the past. It is used to check whether the implied volatility of an option is expensive by historical standards.

Inflation that is very high and difficult to control, whereby prices increase rapidly as a currency loses its value. Definitions vary, but one standard is inflation exceeding 50% in one month, and/or 100% in one year.