FOREX GLOSSARY

• APPRECIATION: A currency is said to appreciate when it strengthens in price in response to market demand
• ARBITRAGE : The purchase or sale an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
• AROUND : Dealer jargon used in quoting when the forward premium/discount is near parity.
  
• ASK RATE : The rate at which a financial instrument is offered for sale (as in bid/ask spread)
• ASSET ALLOCATION : Investment practice that divides funds among different markets to acheive diversification for risk management purposes and/or expected returns consistent with an investors objectives
• BACK OFFICE : The departments and processes related to the settlement of financial transactions
• BALANCE OF TRADE : The value of country's exports minus its imports.