KY
Forex
A
Appreciation
Common term used to describe a currency increasing in value, as a result of market forces as opposed to official adjustment.
Aussie
In Forex trading, it's a nickname for the Australian dollar.
C
Cable
Refers to the Sterling/US Dollar exchange rate.
Currency basket
A weighted group of currencies purchased together, usually by a Central Bank for the purpose of fixing an exchanging rate.
Currency intervention
A situation where a central bank attempts to influence the value of its currency by either selling or buying it on the forex market.
Currency swap
Agreement between two parties to exchange principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency.
D
Deflation
A decrease in the general price level of goods and services, whereby the inflation rate falls below zero percent, resulting in an increase in the real value of money.
Depreciation
Decline in the value of an asset, currency, or security.
F
Fixed Exchange Rate
Exchange rate regime in which a currency is pegged by the Central Bank so that it cannot fluctuate against other currencies. Currencies can be pegged to other currencies or commodities, such as gold.
H
Hard Currency
Any 'major' currency that investors have confidence in.
K
Key currency
Stable, globally-used currencies used in international trade and commerce. Smaller countries often peg their own currency to a key currency, or basket of such monies, and they are often kept as reserves by international central banks.
Kiwi
Informal term for the New Zealand Dollar.
L
Liquid Market
When there are plenty of lots of a particular currency being bought and sold every day.
Lot
Standardized quantity in forex, composed of 100,000 units of a particular currency pair.
N
Net Asset Value (NAV)
In a currency trading account, equal to the balance of deposits, realized and unrealized profit/loss, and interest - minus withdrawals.
O
Official Settlements Account
US balance of payments category that sums the movement of dollars in foreign official holdings and US reserves.
P
Peg
Type of exchange rate regime where one currency's value is fixed to another currency or basket of currencies.
Purchasing Power Parity
Model of exchange rate determination based on the law of one price, which states that the price of a good in one country should equal the price of the same good in another country.
Q
Quote currency
Currency listed second in a currency pairing.
R
Reciprocal Currency
A currency pair involving the US Dollar where the US dollar is not the first currency quoted. For example, the euro is the base currency when paired with the US dollar.
Reserve Currency
Any currency that is perceived as stable or reliable, meaning that central banks are willing to hold it in mass quantities. The US Dollar is currently the world's foremost reserve currency.
S
Sterling
Official term for the British Pound.
Swissie
In Forex trading, it's a nickname for the Swiss Franc.
U
Unconvertible Currency
Any currency that cannot be freely exchanged for other(s) because of foreign exchange regulations.
US Dollar Index (USDX)
Measure of the value of the US dollar, weighted according to the currencies of its trading partners.
X
XAG/USD
The currency symbol for Silver/U.S Dollar.
XAU/USD
The currency symbol for Gold/U.S Dollar.