Futures and Forex Glossary Dictionary F3

 
Flip Forex

Traders shifting from more long positions to more short positions indicating the close of a market’s bullish outlook

Floating Exchange Rate

Market determined foreign currency exchange rate. Related Term: Exchange Rate

Floor Broker Futures

Individual or entity who by virtue of being a member of an option’s or future’s exchange executes buy and sell orders on behalf of their customers on the exchange’s flo

Floor Trader Futures

A member of the exchange and a futures trader who only trades for his own account or for an account controlled by him. Also called a ‘loca

Force Majeure

Risk of sustained interruption in currency trading business due to factors beyond the control of the broker such as fire, flood, earthquake, or an act of God.

Foreign Currency Effects

Gain or loss in foreign investments due to currency fluctuations and currency conversion rates between countries. Example: In the context of a rising domestic currency, foreign investments when converted back to domestic currency will result in lower returns.

Foreign Exchange

Another country’s currency. Also called fore

Foreign Exchange Centers

Prominent financial centers in the world where large volume of currency transactions are carried out. Example: Tokyo, London, New York.

Foreign Official Dollar Reserve (FRODOR)

Foreign banks stash of US Treasury and US agency securities.

Forex

Same as foreign exchange

Forex Charting Software

Component of technical analysis that charts the price of different currencies alongside technical indicators and which forms an integral part of forex trading platforms provided by different brokers. Related Term: Chartist

Forex Demo Account

A forex trading practice account provided by forex brokers to their clients in order to familiarize with the trading platforms and hone their skills in trading, without risking any money whatsoever. Related Term: Forex Trading Account

Forex Future

Buying or selling a quantity of currency at a preset price at a future date.

Forex Market Hours

24 hours a day, 5 days a week during which currency traders can buy, sell, exchange and speculate on currencies. Related Term: Trading Hours

Forward Forex

Settling a foreign exchange contract for a preset exchange rate at an agreed future date, on the basis of interest rate differentials between the two currencies involved in the transaction.