Developed by Norman Fosback, the ABI is equal to the absolute value of the difference between the advancing issues and the declining issues. It shows how much activity and volatility is taking place on the New York Stock Exchange while totally ignoring the price direction.

The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals , over the period of each deal.

The amount of interest that has been earned since the last interest payment date. When a bond trades, the buyer pays the seller the accrued interest - a pro rata portion of the next interest payment, which will be paid to the buyer of the bond.

The underlying assets or instruments which are traded in the cash market.

Term for an exchange rate regime where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency , often the dollar or French Franc, but where the rate may be changed from time to time. This was the basis of the Bretton Woods system. See peg, and crawling peg.

Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.

(1) A bank acting for a foreign bank. (2) In the Euro market - the agent bank is the one appointed by the other banks in the syndicate to handle the administration of the loan.

Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and and firms in other countries for good and services.

Size of exposure of a bank to a single customer for both spot and forward contracts.

Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.

Difference in the value between currencies. Also used to describe percentage charges for conversion from paper money into cash, or from a weak into a strong currency.

Describes a currency strengthening in response to market demand rather than by official action.

Az arany egységének pillanatnyi világpiaci ára.

The simultaneous purchase and sale on different markets, of the same or equivalent financial instruments to profit from price or currency differentials. The exchange rate differential or Swap points. May be derived from Deposit Rate differentials.

The range of prices within which there will be no possibility to arbitrage between the cash and futures market.

Used in quoting forward "premium / discount". "Five-five around" would mean five point on either side of the present spot value.

The price at which the currency or instrument is offered.

In the context of foreign exchange is the right to receive from a counterparty an amount of currency either in respect of a balance sheet asset (e.g. a loan) or at a specified future date in respect of an unmatched forward Forward or spot deal.

Dividing instrument funds among markets to achieve diversification or maximum return.

An instruction given to a dealer to buy or sell at the best rate that can be obtained.

An order to deal at a specific rate or better.

A financial institution or bank authorized to deal in foreign exchange.