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A |
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| Aggregate Demand |
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It includes private and public sector demand for goods and services
within the country and the demand of consumers and firms in other countries
for goods and services. |
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| Aggregate Risk |
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Size of exposure of a bank to
a single customer for both spot and forward contracts. |
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| Aggregate Supply |
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Total supply of goods and services in the economy from domestic sources
(including imports) available to meet aggregate demand. |
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| Agio |
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Difference in the value between currencies. Also used to describe
percentage
charges for conversion from paper money into cash, or from a weak into a
strong currency. |
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| American Option |
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An option which may be exercised at any time prior to expiration.
Compared with a European option that can only be exercised on a specific
date. |
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| Arbitrage |
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The simultaneous purchase and sale on different markets,
of the same or equivalent financial instruments to profit from price or
currency differentials.
The exchange rate differential or Swap points. May be derived from Deposit
Rate differentials. |
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| Ask |
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The price at which the currency or instrument is offered. |
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| Association Cambiste International
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The international society of foreign exchange dealers consisting of
national "Forex clubs" affiliated on a world wide basis. |
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| At or Better |
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An order to deal at a specific rate or better |
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| At-the-Money |
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An option whose strike/exercise price is equal to or near the current
market price of the underlying instrument. |
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