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Glossary

Fast market

Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.

Federal Deposit Insurance Corporation (FDIC)

The regulatory agency responsible for administering bank depository insurance in the United States.

Federal Reserve System (Fed)

An independent financial institution, which serves as the US central bank. It was founded on December 23, 1913.

Fill

The process of completing a customer's order to buy or sell a currency pair.

Fill price

The price at which a buy or sell order was executed.

Financial risk

The risk that a firm will be unable to meet its financial obligations.

Flat

Term describing a trading book with no market exposure.

Floating profit/loss

Unrecorded gains/losses on the open positions of a certain tool at current rates values.

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.

Foreign Exchange (Forex)

A currency market.

Foreign exchange risk

The risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced.

Forex

Term commonly used when referring to the foreign exchange market.

Forward

A transaction that settles at a future date.

Forward points

The points that are added to or subtracted from the spot rate to calculate the forward rates for a forward foreign exchange transaction. These points are based on the differential between the interest rates of the two currency pairs.

Forward rates or forward price

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.

Fundamental analysis

Analysis of economic and political information with the objective of determining future movements in a financial market.

FX

Foreign Exchange.

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