Glossaries：F

金融商品を取引するとき、一番の壁は専門用語です。また、一般的な用語でも、株価・為替(FX, CFD), 仮想通貨などでは違う意味で使われていることもあります。そんな時に便利な用語辞典をご用意しました。取引を始めたばかりの初心者から経験者まで全ての方に片手間で調べたい時に、ささやかですが、是非参考にしてください。

When we trade financial products, the number one barrier is terminologies. In addition, even general terms we use in our lives in the financial world such as stock, forex, cryptocurrencies may have different meanings. In such a case, this site has prepared a convenient term dictionary. It’s a small thing, but please refer to it when you want to find out glossaries with one hand for all investors from beginners who have just started trading to experienced people.

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F

Fast Market

Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.

Fed

The United States Federal Reserve. Federal Deposit Insurance Corporation Membership is compulsory for Federal Reserve members. The corporation had deep involvement in the Savings and Loans crisis of the late 80s.

Fed Funds

Cash balances held by banks with their local Federal Reserve Bank. The normal transaction with these funds is an interbank sale of a Fed fund deposit for one business day. Straight deals are where the funds are traded overnight on an unsecured basis.

Fed Fund Rate

The interest rate on Fed funds. This is a closely watched short term interest rate as it signals the Feds view as to the state of the money supply.

FEDAI

Foreign Exchange Dealers Association of India is an association of all dealers in foreign exchange which sets the ground rules for fixation of commissions and other charges and also determines the rules and regulations relating to day-to-day transactions in foreign exchange in India. The FEDAI has recognized 38 currencies for dealing.

Federal National Mortgage Association

A privately owned, but US government sponsored, corporation that trades in residential mortgages. Its activities are funded by the sale of instruments commonly known as Fannie Maes.

Federal Reserve Board

The board of the Federal Reserve System, appointed by the US President for 14 year terms. One member of the board is appointed chairman every four years.

Federal Reserve System

The central banking system of the US comprising 12 Federal Reserve Banks controlling 12 districts under the Federal Reserve Board. Membership in the Fed is compulsory for banks chartered by the Comptroller of Currency, and optional for state chartered banks.

Financial Future

A futures contract based on a financial instrument.

Fine Rate

(1) A quote with a narrow spread.

(2) The most favorable rate charged to a high quality borrower.

Firm Quotation

The price given in response to a request for a rate at which the quoting party is willing to execute a deal for a reasonable amount, for spot settlement. Screen quotes are indicative. Quotes on matching systems are normally firm depending on the system’s requirement to reconfirm rate prior to completing matching.

Fiscal Policy

Use of taxation as a tool in implementing monetary policy.

Fixed Dates

The monthly calendar dates similar to the spot. There are two exceptions. For detailed description see value dates.

Fixed Exchange Rate

Official rate set by monetary authorities for one or more currencies. In practice, even fixed exchange rates are allowed to fluctuate between definite upper and lower bands, leading to intervention by the central bank.

Fixing

A method of determining rates by normally finding a rate that balances buyers to sellers. Such a process occurs either once or twice daily at defined times. Used by some currencies, particularly for establishing tourist rates . The system is also used in the London Bullion market.

Flat/Square

Where a client has not traded in that currency, or where an earlier deal is reversed thereby creating a neutral (flat) position. For example, you bought $500,000 then sold $500,000 = FLAT.

Flexible Exchange Rate

Exchange rates with a fixed parity against one or more currencies with frequent revaluation. A form of managed float.

Float

(1) See Floating exchange rate.

(2) Cash in hand or in the course of being transferred between banks.

(3) The Federal Reserve Float exists because checks sent to the Federal Reserve Banks are sometimes credited in advance of the depositing bank loosing the reserve.

Floating Exchange Rate

When the value of a currency is decided by the market forces dictating the supply and demand of that particular currency .

Floor

(1) An agreement with a counterparty that sets a lower limit to interest rates for the floor buyer for a stated time.

(2) A term for an exchanges trading area (cf. screen based trading), normally the trading area is referred to as a pit in the commodities and futures markets.

FOMC

Federal Open Market Committee, the committee that sets money supply targets in the US, which tend to be implemented through Fed Fund interest rates etc.

Foreign Exchange

The purchase or sale of a currency against the sale or purchase of another.

Foreign Position

A position in which one party agrees to purchase from or sell to the other party an agreed amount of foreign currency .

Forex, FX

An abbreviation of foreign exchange.

Forex Deal

The purchase or sale of a currency against the sale or purchase of another currency. The maximum time for a deal is defined when the deal opens. The deal can be closed at any moment until the expiry date and time. For technical reasons, a deal cannot be closed in its first 3 minutes.

Forward Contract

Sometimes used as synonym for “forward deal” or “future”. More specifically, it referes to arrangements with the same effect as a forward deal between a bank and a customer.

Forward Cover Taking

Forward contracts intended to protect against movements in the exchange rate.

Forward Deal

A deal with a value date greater than the spot value date.

Forward / Forward

A forward / forward deal is one where both legs of the deal have value dates greater than the current spot value date.

Forward Margins

Discounts or premiums between spot rate and the forward rate for a currency. Normally quoted in points.

Forward Maturities

Trading days on which day contracts can be transacted later than the spot date.

Forward Operations

Foreign exchange transactions for which the fulfillment of the mutual delivery obligations is made on a date later than the second business day after the transaction was concluded.

Forward Outright

A commitment to buy or sell a currency for delivery on a specified future date or period. The price is quoted as the spot rate minus or plus the forward points for the chosen period.

Forward Points

The interest rate differential between two currencies expressed in exchange rate points. The forward points are added to or subtracted from the spot rate to give the forward or outright rate, depending on whether the currency is at a forward premium or discount.

Forward Rate

The rate at which a foreign exchange contract is struck today for settlement at a specified future date, which is decided at the time of entering into the contract. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction. The base currency with the higher interest rate is said to be at a discount to the lower interest rate quoted currency in the forward market. Therefore the forward points are subtracted from the spot rate. Similarly, the base currency with the lower interest rate is said to be at a premium, and the forward points are added to the spot rate to obtain the forward rate.

Forward Rate Agreements

The FRA is an agreement between two parties that determines the interest rate that will apply to a notional future loan or deposit of an agreement.

Free Reserves

Total reserves held by a bank less the reserves required by the authority.

Front Office

The activities carried out by the dealer, normal trading activities.

Fundamental Analysis

Analysis based on economic and political factors.

Fundamentals

The macro economic factors that are accepted as forming the foundation for the relative value of a currency. These include inflation, growth, trade balance, government deficit, and interest rates.

Funds

A term for USD/CAD/Fungibles Instruments that are equivalent, substitutable and interchangeable in law. May apply to certain exchange traded currency contracts offered on a number of exchanges.

Futures Contract

A contract traded on a futures exchange that requires the delivery of a specified quality and quantity of a commodity, currency or financial instruments within a specified future month, if not liquidated before the contract matures.

Futures Exchange-Traded Contracts

They are firm agreements to deliver (or take delivery of) a standardized amount of something on a certain date at a predetermined price. Futures exist in currencies, money market deposits, bonds, shares and commodities. They are traded on an exchange with the clearing corporation guaranteeing the contract and moreover the trade is done on a mark to market basis.

＊These glossaries are based on easyMarkets educational tools.