Forex Trading Glossary | Foreign Exchange Definitions

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Helpful Hints: A - Z of some commonly used terms for Trading Foreign Exchange and the Financial Markets. Select the relevant letter to learn more about the subject at

Community members are welcome to comment, ask questions or request any additions to the section.

Example of the Index in Section "A":

Accrual - The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (interest arbitrage) deals, over the period of each deal.

Aggressive - Traders and/or price action are acting with conviction.

Analyst - A financial professional who has expertise in evaluating investments and puts together buy, sell and hold recommendations for clients.

Appreciation -  A currency is said to appreciate when its price rises.

Arbitrage -  The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.

Ask (Offer) -  Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask prices are shown on the right side of a quote, e.g. EUR/USD 1.1745 / 50 denotes that one EUR can be bought for 1.1750 USD.

Asian Central Banks - Refers to the central banks or monetary authorities of Asian countries. These institutions have been increasingly active in major currencies as they manage growing pools of foreign currency reserves arising from trade surpluses. Their market interest can be substantial and influence currency direction in the short-term.

Asian Session - 1800 - 0300 EST.  23:00  - 08:00 GMT.

Asset Allocation -  An investment practice that divides capital among different types of asset classes in order to achieve a return that is proportionate to the investor’s risk appetite.

At best - An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.

At or better - An instruction given to a dealer to buy or sell at a specific price or better.

AUS 200 - A term for the Australian Securities Exchange (ASX 200), which is an index of the top 200 companies (by market capitalization) listed on the Australian stock exchange.

Aussie (AUD) -  The Australian Dollar.

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