F
FAST MARKET
The rapid movement of prices or rates in a market caused by disequilibria in supply and demand conditions from buyers and/or sellers. In such circumstances rates or prices may not be readily available to customers until orderly markets resume.
FED FUND RATE
The short term (overnight) rate pegged by the Federal Reserve Bank used to conduct monetary policy and money supply in the United States economy.
FED FUNDS
Cash balances held by banks with their local Federal Reserve Bank.
FED
The United States Federal Reserve Bank.
FEDERAL OPEN MARKET COMMITTEE
Also known as the FOMC. The body of individuals that decide the course of monetary policy that will be conducted in United States. The FOMC is directly responsible for pegging the Federal Funds rate and the Discount Rate. Both rates are influential in controlling levels of money supply and economic activity in the United States.
FEDERAL RESERVE BOARD
The board of the Federal Reserve System, appointed by the US President for 14 year terms, one of whom is appointed for four years as chairman.
FEDERAL RESERVE SYSTEM
The central banking system of the US comprising 12 Federal Reserve Banks controlling 12 districts under the Federal Reserve Board. Membership of the Fed is compulsory for banks chartered by the Comptroller of Currency and optional for state chartered banks.
FILL OR FILLED
A deal that has been executed on behalf of a Customer's Account given a Customer's Order. Once filled, an Order cannot be canceled, amended or waived by Customer.
FIRM QUOTATION
A verbal price given in response to a request for a firm rate at which the quoting party is willing to execute a deal for a reasonable amount for spot settlement.
FISCAL POLICY
Use of taxation as a tool in implementing monetary policy.
FIXED DATES
The monthly calendar dates similar to the spot. There are two exceptions. For detailed description see value dates.
FIXED EXCHANGE RATE
Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band.
FIXING
A method of determining rates by normally finding a rate that balances buyers to sellers. Such a process occurs either once or twice daily at defined times. Used by some currencies particularly for establishing tourist rates.
FLOATING EXCHANGE RATE
An exchange rate where the value is determined by market forces. Even floating currencies are subject to intervention by the monetary authorities. When such activity is frequent the float is known as a dirty float.
FOMC
Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates.
FOREIGN EXCHANGE
The term "Foreign Exchange" generally refers to off exchange trading in foreign currency. It may also refer to currency trading on exchanges such as the IMM at the Chicago Mercantile Exchange. FXDD does not make physical delivery of foreign currency into foreign bank accounts.
FOREX
"Forex" is a popular short name for foreign exchange and generally refers to off exchange trading in foreign currency.
FOREX MARKET HOURS
The hours during which Forex market participants are able to buy, sell, exchange and speculate on currencies. The Forex market is open 24 hours a day, five days a week. International currency markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail Forex brokers and investors around the world. Because this market operates in multiple time zones, it can be accessed at almost any time.
FOREX SIGNAL (SYSTEM)
A set of analyses that a Forex trader uses to determine whether to buy or sell a currency pair at any given time. Forex signal systems could be based on technical analysis charting tools or news-based events. The day trader's currency trading system is usually made up of a multitude of signals that work together to create a buy or sell decision. Forex trading signals are available for free, for a fee or are developed by the traders themselves.
FOREX TECHNICAL ANALYSIS
Technical Analysis is a system for investors to strategize their trading methods. These analysts examine price data of foreign exchange rates to determine if those prices will continue in the future. Technical analysis involves the use of charts as a tool to identify patterns or trends in a currency market.
FOREX TECHNICAL TRADING
Is the use of charts, indicators, oscillators and other tools to assist in uncovering possible Forex market trends and trading opportunities.
FORWARD DEAL
A deal with a value date greater than the spot value date.
FORWARD
A forward / forward deal is one where both legs of the deal have value dates greater than the current spot value date.
FORWARD RATE
Forward rates are quoted in terms of forward points, which represents the difference between the forward and spot rates. In order to obtain the forward rate the forward points are either added or subtracted from the exchange rate.
The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction. The base currency with the higher interest rate is said to be at a discount to the lower interest rate quoted currency in the forward market. Therefore, the forward points are subtracted from the spot rate. Similarly, the lower interest rate base currency is said to be at a premium, and the forward points are added to the spot rate to obtain the forward rate.
FRONT OFFICE
The activities carried out by the dealer, normal trading activities.
FUNDAMENTALS
The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
FX
"FX" is a popular acronym for Foreign Exchange. Foreign Exchange generally refers to off exchange trading in foreign currency.