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Same day transaction - A transaction that matures on the day the transaction takes place.
Sell Limit Order - An order to carry out a transaction only at a specific price (the limit) or higher.
Selling rate - Rate at which a bank is willing to sell foreign currency.
Selling Short - A condition where a currency has been sold with the intent of buying back the place at a lower price to make a profit.
Settlement date - The date upon which foreign exchange contracts settle.
Settlement Risk - Where a payment is made to a counter party before the counter value payment has been made. The risk is that the counter party's payment will not be received.
Short - See the short position.
Short sale - The sale of a specified amount of currency not owned by the seller at the time of the trade. Short sales are usually made in expectation of a decline in the price.
Short Squeeze - The pressure on short sellers to cover their positions because of sharp charge increases.
Short-term interest rates - Normally the 90 day rate.
Simple Moving Average (SMA) - A simple average of a pre - defined sum of price bars. For instance, a 50 period Daily chart SMA is the average closing charge of the earlier 50 daily closing bars. Any time interval can be applied at this point.
Slippage - Refers to the negative (or depreciating) pip value between where a stop loss order becomes a market order and where that market order may be filled.
Soft Market - More potential sellers than buyers, which creates an environment where rapid price falls are likely.
Spot - (1) The most common foreign exchange transaction. (2) Spot or Spot date refers to the spot transaction value date that requires settlement within two business days, subject to value date calculation.
Spot next - The overnight swap from the spot date to the next business day.
Spot price/rate - The price at which the currency is currently trading in the spot market.
Spread - (l)The difference between the bid and ask price of a currency. (2) The difference between the price of two related futures contracts.
Square - Purchase and sales are in balance and thus the dealer has no open position.
Squawk Box - A speaker connected to a phone often used in broker trading desks.
Standard - A term referring to certain normal amounts and maturities for dealing.
Sterling - British pound, otherwise known as cable.
Stop-Loss order - Order to buy or sell at the best available price when a given price threshold has been reached.
Stop Order (or stop) - Order to buy or to sell a currency when the currency's charge reaches or passes a particular level.
Support levels - When an exchange rate depreciates or appreciates to a level where (1) Technical analysis techniques suggest that the currency will rebound, or not go below; (2) the monetary authorities intervene to stop any further down ward movement. See resistance point.
Swap price - A price as a differential between two dates of the swap.
Swap - The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.
Swissy - It is the market slang for Swiss Franc.
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Take Profit Order - A customer's orders to buy or sell a currency pair which, when executed, will result in the drop in the size of the available position and show a profit on said position.
Technical Correction - An adjustment to price not based on market sentiment but technical factors such as volume and charting.
Tick - A minimum change in price, up or down.
Tomorrow next (Tom next) - Simultaneous buying of a currency for delivery the following day and selling for the spot day or vice versa.
Trade Balance - Measures the difference in value involving imported and exported goods and services. Nations with trade surpluses (exports greater than imports), like Japan, tend to see their currencies be pleased about, while countries with trade deficits (imports greater than exports), like the US, tend to see their currencies weaken.
Tradeable amount - Smallest transaction size acceptable.
Transaction - The buying or selling of currencies resulting from the execution of an order.
Transaction Cost - It is the cost of buying or selling a monetary instrument.
Transaction Date - The date on which a trade happens.
Turnover - The total money value of the entire performed transactions in a given time period, volume.
Two-Way quotation - When a dealer quotes both buying and selling rates for foreign exchange transactions.
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U.S. Treasury - The United States Department of the Treasury is the government department in charge for issuing the entire Treasury bonds, notes, and bills.
UK Average Earnings Including Bonus/ Excluding bonus - Measures the average earnings including/excluding bonuses paid to employees. This is calculated QoQ from the earlier year.
UK Claimant Count Rate - Measures the number of people claiming being without a job benefits. The claimant count figures are apt to be lower than the unemployment data since not all unemployed are qualified for benefits.
UK HBOS House Price Index - Measures the qualified level of UK house prices for an indication of trends in UK real estate part and their implication for on the whole economic outlook. This index is the highest monthly data series of any UK housing index, put out by the biggest UK mortgage lender (Halifax Building Society/Bank of Scotland).
UK Jobless Claims Change - Measures vary in the number of people claiming benefits over the earlier month.
UK Manual Unit Wage Costs - Measures vary in total labor cost expended in the manufacture of one unit of output.
UK Producers Price Index Input - Measures the rate of price increases experienced by manufacturers when purchasing materials and services. This data is directly scrutinized because it can be a leading indicator of consumer inflation.
UK Producers Price Index Output - Measures the rate of price increases experienced by manufacturers when selling goods and services.
Uncovered - Another term for an open position.
Under-valuation - An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.
Unemployment Rate - It is that measures the total workforce that is unemployed and actively seeking employment, measured as the percentage of the labor force.
University of Michigan's Consumer Sentiment Index - It is the polls 500 US households every month. The report is issued in a beginning version mid - month and a last version at the end of the month. Questions turn around individuals attitudes about the US economy. Consumer sentiment is observed as a substitute for the strength of consumer spending.
Unrealized Gain/Loss - The theoretical gain or loss on Open Positions valued at existing market rates, as determined by the broker in its only discretion. Unrealized Gains' Losses turn out to be Profits/Losses when position is closed.
Up tick - A transaction executed at a price greater than the previous transaction.
Uptick Rule - In U.S, a regulation whereby a security may not be sold short except the last trade before the short sale was at a price lower than the price at which the short sale is executed.
US Prime Rate - The interest rate at which US banks will provide to their prime business customers.
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