1 - Actuals : The underlying assets or instruments that are traded in the cash market.

2 - Adjustable Peg : Term for an exchange rate regime where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency, often the dollar or French franc, but where the rate may be changed from time to time.

3 - Against Actuals : is a commodity market transaction whereby futures are exchanged or transferred against a cash position.

4 - Authorized Dealer : A financial institution or bank authorized to deal in foreign exchange.

5 - Appreciation : A currency is said to 'appreciate' when it strengthens in price in response to market demand.

6 - Arbitrage : The purchase or sale of 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.

7 - Ask Rate : The rate which the market offers when it sells a financial instrument (the client buys).

8 - Asset Allocation : Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor's objectives.

9 - Backwardation : Term referring to the amount that the spot price exceeds the future price.

10 - Band : The range in which a currency is permitted to move. A system used in the risk management.

11 - Bank Rate : The rate at which a central bank is prepared to lend money to its domestic banking system.

12 - Base Currency : The first currency in a currency pair. In a currency exchange, the exchange rate is quoted as the units of one currency in terms of a single unit of a base currency. For example, in a currency exchange of U.S. dollars for Japanese Yen, the base currency is the U.S. dollar.

13 - Basis : The difference between the cash price and futures price of given commodity.

14 - Basis Trading : Taking opposite positions in the cash and futures market with the intention of profiting from favorable movements in the basis.

15 - Bear Market : A prolonged period of generally falling prices

16 - Bid : The price at which a buyer has offered to purchase the currency or instrument.

17 - Broker : An agent, who executes orders to buy and sell currencies and related instruments either for a commission or on a spread. Brokers are agents working on commission and not principals or agents acting on their own account. In the foreign exchange market brokers tend to act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties.

18 - Bull Market : A prolonged period of generally rising prices.

19 - Cable : A term used in the foreign exchange market for the U.S. Dollar/British pound rate.