Futures and Forex Glossary Dictionary F4

 
Forward (Cash) Contract Futures

A contract of an asset to be delivered at a forthcoming date as per price and quantity specified in the contract.

Forward Point

Number of basis points either added to or deducted from the present spot rate to arrive at the forward rate.

Forward Rates

Projected future interest rates calculated either from the yield curve or spot rates by adding or subtracting forward points from either spot rate.

Free Reserves

Excess reserves minus borrowings. Example: For a bank it is excess reserves minus bank borrowing at the Fed.

Frontrunning

Anyone who illegally enters into an option or futures contract with prior knowledge of forthcoming block transaction that would most likely impinge on the price of underlying security and thereby make a killing on the trade. Such transactions are legally proscribed by SEC. Related Term: SEC

Fully Disclosed Futures

Fully disclosed

Fundamental Analysis

Measure of the intrinsic value of a currency and its effect on currency prices in relation to economic and financial factors such as GDP, Trade Balance and Employment. Related Term: Technical Analysis

Fundamental Trader

A currency trader using fundamental analysis for trading purposes.

Fundamentals

Qualitative and quantitative information pertaining to the financial valuation of a currency.

Funding Currencies

Currencies with low interest rate. Related Term: Currency

Futures

A financial contract involving a physical commodity or financial instrument obligating the buyer to purchase the asset or the seller to sell the asset at a prefixed future date and price.

Futures Commission Merchant (FCM)

A merchant operating in the futures contract market who accepts commodity orders for future delivery of commodities. Related Term: Commodities

Futures Contract

Commodity exchange terminology for financial instruments/physical commodities meant for future delivery.

Futures Industry Association (FIA)

An association of banks, advisors, and futures commission merchants doing business in the futures markets of US, Europe and Asia.

Fxmarketspace

A centrally cleared global foreign exchange platform formed consequent to a joint-venture between Reuters and the Chicago Mercantile Exchange to cater to the needs of the foreign currency market, reportedly defunct since October 17, 2008 Related Term: Trading Platform