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M
Maintenance - A set minimum boundary that a customer must uphold in his boundary account.
Maintenance margin - The minimum margin which an investor must keep on deposit in a margin account at all times in respect of each open contract.
Make a market - A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.
Managed float - When the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a required direction.
Manufacturing Production - Measures the total output of the manufacturing part of the Industrial Production figures. This data simply measure the 13 sub sectors that relate directly to manufacturing. Manufacturing makes up about 80% of total Industrial Production.
Margin - The amount of money or collateral that must be, in the first instance, provided or thereafter, maintained, to ensure against losses on open contracts. Initial must be placed before a trade is entered into. Maintenance or Variation margin must be added to initial to maintain against losses on open positions. Sometimes herein the amount that needs to be present to establish or thereafter maintained is sometimes herein referred to as necessary margin.
Margin Account - It is an account that allows leverage buying on credit and borrowing on currencies previously in the account. Buying on credit and borrowing are subject to standards well-known by the firm carrying the account. Interest is charged on whichever borrowed funds and simply for the period of time that the loan is outstanding.
Margin call - A claim by one's broker or dealer for additional good faith performance monies usually issued when an investor's account suffers adverse price movements.
Market Close - This denotes to the time of day that a market closes. In the 24 hour-a-day foreign exchange market, there is no official market close. 5:00 PM EST is frequently referred to and understood as the market close for the reason that value dates for spot transactions change to the next new value date at that time.
Mark to market - The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.
Market maker - A market maker is a person or firm authorized to create and maintain a market in an instrument.
Market order - An order to buy or sell a financial instrument immediately at the best possible price.
Market Rate - It is the current quote of a currency pair.
Market Risk - It Exposure to changes in market charges.
Maturity - The date on which payment of a financial obligation is due.
Micro economics - The study of economic activity as it applies to individual firms or well defined small groups of individuals or economic sectors.
Mid-price or middle rate - The price half-way between the two prices, or the average of both buying and selling prices offered by the market makers.
Minimum price fluctuation - The smallest increment of market price movement possible in a given futures contract.
Momentum - The tendency of a currency pair to continue movement in a single direction in the market.
Momentum investor - A market partaker who raise market exposure when the market is rising and decreases exposure or goes small when the market is declining.
Monetary Base - Currency in circulation plus banks' required and excess deposits at the central bank.
Moving Average - A way of smoothing a set of data, widely used in price time series.
N
Net Position - The amount of currency bought or sold which have not yet been offset by opposite transactions.
Non-Client Order - An order on an exchange that is complete by a participant firm or on behalf of an officer, partner, director, or employee of the member firm. Where a participant firm is a firm i.e. entitled to trade on the exchange, as well known as a member firm. While these orders are permissible, priority must be given to client orders for the similar securities.
O
OCO - One Cancels the Other Order - A grouping of two orders in which the completing of either one automatically cancels the other.
Odd Lot - A non standard amount for a transaction.
Offer - The price at which a seller is willing to sell. The best offer is the lowest such price available.
Offset - The closing-out or liquidation of a futures position.
Offsetting transaction - A buy and sell with which serves to cancel or offset some or the entire marketplace risk of an open position.
Off-shore - The operations of a financial institution which although physically located in a country, has little connection with that country's financial systems. In certain countries a bank is not permitted to do business in the domestic market but only with other foreign banks. This is known as an off shore banking unit.
One Cancels the Other Order (OCO) - A designation for two orders whereby one part of the two orders is carried out and the other is automatically cancelled.
Open Order - Buy or sell order that continues in force until executed or cancelled by the customer. It is on the whole associated with Good 'til Cancelled Orders.
Open position - An agreement not yet reversed or settled with a physical payment.
Order - An instruction to carry out a trade at a particular rate.
Over the Counter (OTC) - Used to explain any transaction that is not conducted over an exchange.
Overnight limit - Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmonitored exposures.
Overnight - A deal from today until the next business day.
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