Cyber*School

Central optimization of treasury transactions

abbr. fill-or-kill

abbr. Federal Open Market Committee

another designation for FT-SE 100

bond issued by a foreign entity in one singular national market denominated in the currency of this countryopposite: domestic bond and Euro-bond

A bond which is listed in a foreign currency.

An outstandning loan that has been granted in a foreign currency and has to be paid back in that currency. Using foreign currency loans may decrease the interest expenses but involves foreign exchange risk.

The global foreign exchange market is by far the largest financial market. The exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as "forex" and occasionally as "FX."

abbr. Foreign Exchange

Characteristic price curves that should enable to predict future price movements in the context of technical analysis. Among the most famous formations are flags, pennants and wedges, the head and shoulders pattern and the M & amp; W formation.

Generic term for instruments whose price is is derived from the price of other securities or financial products (the so-called underlying assets or underlyings). Examples of derivatives: futures, options and swaps.

v. SAFE

A forward contract is a fixed agreement between two parties to conduct a foreign exchange transaction at a fixed rate with a later date than the spot transaction day.

v. Cross Currency Swap

Interest rate fixed today on a loan to be made at some future date

v. FRA

(FSA) This variation of a forward rate agreement is used to hedge the spread between interest rates of similar maturity in different currencies.

a repo with a start date later than spot i.e. in the future

A customized contract between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation, although its non-standardized nature makes it particularly apt for hedging. Unlike standard futures contracts, a forward contract can be customized to any commodity, amount and delivery date. A forward contract settlement can occur on a cash or delivery basis. Two types: unconditional contracts (futures, forwards) and conditional financial instruments (options). Contrary spot transaction

a transaction in which two parties agree to exchange two currencies in the future and to do a reverse transaction with a value date later than the first exchangein fact is a FX-swap with a short leg with a value date later than spot, e.g. buy EUR/USD in 3 month and sell simultaneously EUR/USD in 6 month