Glossary

Refers to the Sterling/US Dollar exchange rate.

Contract in which the buyer has the right but not the obligation to purchase a particular security for a given strike price, on (in the case of European call options) or before (in the case of American call options) the expiration date.

Type of chart that uses shaded bars to indicate trading range (i.e. high and low price) as well as the opening and closing prices for consecutive time periods.

A trading strategy involving the sale of low-yielding currency (funding currency) in favor of a higher-yielding (carry currency) alternative, with the goal of earning a return on the spread/differential. This differential is known as the 'carry'.

Central bank for the UK, whose actions directly weigh on the value of the Pound Sterling (GBP).

A governmental or quasi-governmental organization that conducts monetary policy and manages the exchange rate for a given economy and its currency. It may also be charged with printing money.

Trading unit. A standard lot in the forex market is $100,000. A mini lot is $10,000.

CME Group is the world’s leading derivatives marketplace with exchanges that offer the widest range of global benchmark products across all major asset classes, including derivatives based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals and weather, as well as clearing services for exchange traded and over-the-counter products.

Agreement between a client and a provider to exchange the difference between the opening and the closing value of the contract.

Refers to a weighted group of currencies purchased together, usually by a Central Bank for the purpose of fixing an exchanging rate.

A situation where a central bank attempts to influence the value of its currency by either selling or buying it on the forex market. 

Agreement between two parties to exchange principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency.

Stocks/securities that move with the economy, gaining if the economy booms and losing if the economy weakens.

Cyprus Securities and Exchange Commission

The Cyprus Securities and Exchange Commission, better known as CySEC, is the financial regulatory agency of Cyprus. As an EU member state, CySEC's financial regulations and operations comply with the European MiFID financial harmonization law.