Foreign Exchange Jargon Buster
Not quite sure what a "forward forward" is in regards to forwards contracts? Perhaps you don't know your
"Greenback" from your "Head and Shoulders"? With our foreign exchange jargon buster you can find
the meanings behind lots of different forex terms.
Simply browse the jargon buster by letter to find the appropriate term.
Most Popular Forex Terms
Forward Contract
A contract where the exchange of currencies is to be made more than two business days ahead at a fixed exchange rate. A popular hedging tool, it allows companies and individuals to fix a rate of exchange for settlement in the future.
Spot
The most common foreign exchange transaction. A transaction that occurs immediately with the transfer of funds to settle the contract usually taking place within two business days after the deal has been agreed. It is used when clients need to buy and sell currency and transfer it within the shortest period possible.
Spot Rate
The price at which the currency is currently trading in the spot market.
