ABA: Digital code used by the American Bankers Association to define a bank.
Accrual: The distribution of premiums and discounts on forward exchange transactions that relate directly to deposit swap deals over the period of each deal.
Adjustment - Official action that occurs either by change made in the internal economic policies to correct a payment imbalance, or in the official currency rate.
Adjustable Peg: An exchange rate system where a country's exchange rate is fixed in relation to another currency. The official rate may be changed from time to time.
Aggregate Risk: Total amount of exposure a bank has with a customer for both spot and forward contracts.
All or None: A limit price order that necessitates the entire order to be filled at the stated price or not at all.
American Option: An option which may be implemented at any valid business date throughout the life of the option.
Arbitrage: A risk-free form of trading where the same instrument is bought and sold at the same time in two different markets in order to cash in on the difference in these markets.
Around: Used in quoting forward "premium / discount" and refers to points on either side of the present spot value.
Ask: The price at which the currency or instrument is offered.
Association Cambiste Internationale: The international society of foreign exchange dealers, affiliated on a worldwide basis.
At Best: To buy or sell at the best rate that is currently available in the market. This is an order usually given to dealers.
At Par Forward Spread: When the forward price is equal to the spot price.
At the Price Stop-Loss Order: A stop-loss order that must be executed at the requested level in spite of market conditions.
Aussie: Slang for the Australian dollar
Average Rate Option: A contract where the exercise price is based on the difference between the strike price and the average spot rate over the contract period. Also known as an Asian Option.
Disclimer: This website is for informational purposes only and is not intended to provide
specific commercial, financial, investment, accounting, tax, or legal advice.
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