Sell Limit order
An order to execute a transaction only at a specified price (the limit) or higher.
A situation where a currency has been sold with the intent of buying back the position at a lower price to make a profit.
The actual delivery of currencies made on the maturity date of a trade.
The situation when a currency sale has occurred and has to be covered with the respective buy.
The pressure on short sellers to cover their positions as a result of sharp price increases.
It's the experience of not getting filled at (or even very close to…) your expected price when you place a market order or stop loss. This can happen because either: market price is simply moving too fast, the market is not liquid or you're talking to an unmotivated broker.
Market where people buy and sell actual financial instruments (currencies) for two-day delivery.
The current market price of a currency that normally settles in 2 business days (1 day for Dollar/Canada).
Spot/Next or S/N roll
The process of moving the spot settlement value date on an open position forward to the next valid value date. This process will affect the profit or loss on the overnight position. The forward points reflect the difference in interest rates between the currencies being rolled over.
The point difference between the bid and ask price.
Another term for the British currency, "The Pound".
Stop Loss order
Order to buy or sell when a given price is reached or passed to liquidate part or all of an existing position.
An order to buy or to sell a currency when the currency's price reaches or passes a specified level.
A client’s order to close an open position after a price reaches a certain level. It is used to minimize losses.
A price at which a currency or the currency market will receive considerable buying pressure.
The payment for transferring an open position overnight. May be both positive and negative. The night from Wednesday to Thursday triples the payment.
SWIFT (Society for Worldwide Interbank Financial Telecommunications)
A computer network which is used to send instruction and payment statements.
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