Dealing room Vocabulary

Currency dealers are known to have a language of their own—all in the need to quickly clinch the deal in an otherwise fast-changing market perception. Agility/ quickness is the essence of the market: the result is the emergence of a “funny vocabulary”. Some of the oft-repeated expressions in the Forex market and their accepted meaning are worth knowing, at least for the sheer fun of it, if not to trade:

·   Offered at; Comes at; I give at; I sell at; I offer at = Sellers or lenders of currency.

·    I bid at; I pay at; I take at; I buy at =Buyers or borrowers of currency

·    Bid, Wanted, Firm, Strong     =Currency in question is appreciating/in demand/buyers predominant

·    Offered, Weak   = Currency in question is depreciating/ sellers predominant

·    Value today   = Same day value

·    Value tomorrow   = Next working/business day

·    End/end  = Forward swaps intended for maturity on the last working day of the appropriate future month       are described as End/end

·      Short dates  = Deals for a broken number of days upto one week.

·      Broken/Odd Date  = Value date which is not the regular forward date.

·     Overnight-Today/Tomorrow   = Currency deposit transaction/ simultaneous purchase and sale of               currency for value today against the next working day.

·     Tomorrow/Next; Tom/Next   = Currency deposit transaction/swap for value the next working day             against the spot value.

·      Spot/Next = Currency deposit transaction/swap for the spot value date against the next working day.

·      Weekend  = Currency deposit transaction/swap for value the last working day of  the week, normally,          Friday against the first working day of the following week, normally, Monday.

·     Outright/outright  = Purchase or sale of currency for delivery for any day other than spot not being a           swap transaction.

·     Par = Forward price is the same as the spot.

·     Parity or same  = No proposition on the rates quoted by the other party. It does not imply that the party     using this expression is ready to do a deal at the rates quoted.

·       For indication/information = Quotes no firm.

·       Details = Needs of a Dealer regarding rate and dates following a transaction.

·     Mine  = Dealer takes the spot/forward/deposit whichever has been quoted from the counter party. It is         dangerous to use the expression unless amounts have been qualified first.

·      Yours  = Opposite of Mine.

·      Point/pip  = Last decimal place of a quotation.

·       Mio  = One million.

·       Billion/Milliard  = One thousand millions.

·       At your risk  = Quote is subject to change.