EURO.uz -The Forex quick guide for beginners and private traders

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The Forex quick guide for beginners and private traders


Day Order An order that if not executed on the specific day, is

automatically canceled.

Day Trader Speculators who take positions that are liquidated prior to

the close of the same trading day.

Day Trading

A Day-Trading deal is a currency exchange deal which

renews automatically every night at 22:00 (GMT time)

starting the day the deal was made and until it ends. The

deal ends in one of the following events: 1. Termination

initiated by the trader. 2. The day trading rate has reached

the Stop-Loss rate (or Take-Profit rate) you predefined. 3.

The deal end date. As long as the deal is open, it is charged

a renewal fee every night at 22:00 (GMT time).

Daylight Exposure Limit See intra-day position.

Deal Date The date on which a transaction is agreed upon.

Deal Ticket The primary method of recording the basic information

relating to a transaction.

Dealer

An individual or firm acting as a principal, rather than as an

agent, in the purchase and/or sale of securities. Dealers

trade for their own account and risk, in contrast to brokers,

who do trade only on behalf of their clients.

Dealing Board The panel of communications equipment forming part of a

dealer's desk.

Declaration Date

The latest day or time by which the buyer of an option must

intimate to the seller his willingness or unwillingness to

exercise the option.

Deficit Shortfall in the balance of trade, balance of payments, or

government budgets.

Deflator Difference between real and nominal Gross National

Product, which is equivalent to the overall inflation rate.

Delivery The settlement of a transaction by receipt, or tender of a

financial instrument or currency.

Delivery Date

The date of maturity of the contract, when the final

settlement of transaction is made by exchanging the

currencies. This date is more commonly known as the value

date.

Delivery Month The calendar month in which a futures contract comes to

maturity and becomes deliverable.

page 83 of 110

Value Definition

Delivery Points

Those locations designated by futures exchanges at which

the currency represented by a futures contract may be

delivered in fulfillment of the contract.

Delivery Risk

A term to describe when counterparty is not able to

complete his side of the deal. This risk is very high in the

case of over the counter transactions where there is no

exchange which can stand as a guarantee to the trade

between the two parties to the contract.

Delta

The change in the value of the option premium made fully

paid by the capitalization of reserves, and given relative to

the instantaneous change in the value of the underlying

instrument, expressed as a coefficient.

Delta Hedging

A method used by option writers to hedge the risk exposure

of written options by purchase or sale of the underlying

instrument in proportion to the delta.

Delta Spread

A ratio spread of options established as a neutral position by

using the deltas of the options concerned to determine the

hedge ratio.

Depo Deposit.

Deport (French) Discount.

Deposit Dealings Money Market operations.

Depreciation

Describes a currency weakening in response to market

demand as opposed to increasing in value as a result of

official action.

Derivatives

A broad term relating to risk management instruments such

as futures, options, swaps, etc.. The contract value moves

in relation to the underlying instrument or currency. The

issue of derivatives and their control following large losses

by banks and corporations has been the subject of much

debate.

Desk Term referring to a group dealing with a specific currency

or currencies.

Details All the information required to finalize a foreign exchange

transaction, i.e. name, rate, dates and point of delivery.

Devaluation

Deliberate downward adjustment of a currency against its

fixed parities or bands, which is normally accompanied by

formal announcement.

Devisen, Devises Foreign exchange in German and French respectively.

Devisenkassamarkt German for spot exchange market.

Devisenterminmarkt German for forward exchange market.

Diagonal (bull or bear)

Spread

The purchase of a longer maturity option and the sale of a

shorter maturity, lower exercise price option. The choice of

calls or puts will determine its bear or bull character.

Direct Quotation Quoting in fixed units of foreign currency against variable

amounts of the domestic currency.

Value Definition

Discount

(1) See also "forward rate". Less than the spot price.

Example: forward discount. Forward rate is lower than spot

rate. (2) An option that is trading for less than its intrinsic

value.

Discount Rate

The rate at which a bill is discounted. Specifically it refers

to the rate at which a central bank is prepared to discount

certain bills for financial institutions as a means of easing

their liquidity, and is more accurately referred to as the

official discount rate.

Disposable Income Earnings after tax.

Domestic Rates

The interest rates applicable to deposits domiciled in the

country of origin. Values may vary from Eurodeposits due to

taxation and varying market practices.

Durable Goods Orders

Durable Goods Orders are a measure of the new orders

placed with domestic manufacturers for immediate and

future delivery of factory hard goods. Durable Goods Orders

are a major indicator of manufacturing sector trends

because most industrial production is done to order.

 

 

 

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