Futures and Forex Glossary Dictionary S1

 
Same Day Transaction

Opening and closing a position on the same day.

Samurai Market

Slang term for the Japanese stock market.

Scalper

A forex trader that makes many small trades a day. A scalper is a forex trader that chooses to follow a strategy of doing several smaller trades with less risk than fewer but bigger trades.

Segregated Account

An account that a broker firm uses to hold its client's holdings separate from its own.

Self Regulatory Organization (SRO)

An organization made up of industry members, that regulate and oversee trading and the market and that set the rules that govern trading. See Also: National Futures Association

Sell Limit Order

A limit order to sell a security once the price reaches a certain price level. See Also: Limit Order

Sell Stop

Limit stop loss order. The sell stop is set below the current market price and if the price falls to the limit, then the limit order is activated and becomes a market order. See Also: Limit Order

Selling Rate

The same as the Ask or Offer rate.

Selling Short

Borrowing an asset and selling it on the market in the hope that the price will fall, so the trader can buy the asset back at a lower price and thus make a profit. Short selling requires margin as collateral.

Settlement

The physical delivery of currency after forex spot transaction. This is usually 2 days after the transaction. In most cases, no actual exchange of currency takes place, but the difference in profit and loss is credited.

Settlement Date

The date at which physical delivery (settlement) of the currency takes place after a transaction.

Settlement Price

The agreed price at which a forex transaction is made.

Settlement Risk

The risk that either party in a forex transaction can't live up to the obligation to deliver the currency on settlement.

Short

Being short in a position means selling it. In forex it's understood that a trader is always short in the base currency and long in the quote currency.

Short Call

Selling (writing) an option that requires the seller to buy the underlying asset at the strike price. See Also: Options