European Central Bank, the central bank for the countries using the Euro.

Economic indicator

A government issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc.

End of day order (EOD)

An order to buy or sell at a specified price that remains open until the end of the trading day, typically at 5pm / 17:00 New York.


The time zone of New York City, which stands for United States Eastern Standard Time/Eastern Daylight time.


A name for the Euronext 50 index.


The currency of the Eurozone.

European Monetary Union (EMU)

An umbrella name for the group of policies that aims to coordinate economic and fiscal policies across EU Member States.

European session

07:00 – 16:00 (London).

Eurozone labor cost index

Measures the annualized rate of inflation in the compensation and benefits paid to civilian workers and is seen as a primary driver of overall inflation.

Eurozone Organization for Economic Co-operation and Development (OECD) leading indicator

A monthly index produced by the OECD. It measures overall economic health by combining ten leading indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices and interest rate spreads.


A share bought where the buyer forgoes the right to receive the next dividend and instead it is given to the seller.

Expiry date / price

The precise date and time when an option will expire. The two most common option expiries are 10:00am ET (also referred to as 10:00 NY time or NY cut) and 3:00pm Tokyo time (also referred to as 15:00 Tokyo time or Tokyo cut). These time periods frequently see an increase in activity as option hedges unwind in the spot market.


Corporations who sell goods internationally, which in turn makes them sellers of foreign currency and buyers of their domestic currency. Frequently refers to major Japanese corporations such as Sony and Toyota, who will be natural sellers of USD/JPY, exchanging dollars received from commercial sales abroad.


A market that is thought to have traveled too far, too fast.


Factory orders

The dollar level of new orders for both durable and nondurable goods. This report is more in depth than the durable goods report which is released earlier in the month.

Fair value

The difference between the price of a derivative contract and the underlying cash market price. Fair value means there are no arbitrage opportunities between the two prices.


The Federal Reserve Bank, the central bank of the United States, or the FOMC (Federal Open Market Committee), the policy-setting committee of the Federal Reserve.

Fed officials

Refers to members of the Board of Governors of the Federal Reserve or regional Federal Reserve Bank Presidents.

Figure / The figure

Refers to the price quotation of ’00’ in a price such as 00-03 (1.2600-03) and would be read as ‘figure-three.’ If someone sells at 1.2600, traders would say ‘the figure was given’ or ‘the figure was hit.’


When an order has been fully executed.

Fill or kill

An order that, if it cannot be filled in its entirety, will be cancelled.

First In First Out (FIFO)

All positions opened within a particular currency pair are liquidated in the order in which they were originally opened.


One of approximately 5 times during the FX trading day when a large amount of currency must be bought or sold to fill a commercial customer’s orders. Typically these times are associated with market volatility. The regular fixes are as follows (all times NY):

5:00am – Frankfurt

6:00am – London

10:00am – WMHCO (World Market House Company)

11:00am – WMHCO (World Market House Company) – more important

8:20am – IMM

8:15am – ECB

Flat or flat reading

Economic data readings matching the previous period’s levels that are unchanged.


Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.


Fresh buying or selling interest after a directional break of a particular price level. The lack of follow-through usually indicates a directional move will not be sustained and may reverse.


Federal Open Market Committee, the policy-setting committee of the US Federal Reserve.

FOMC minutes

Written record of FOMC policy-setting meetings are released 3 weeks following a meeting. The minutes provide more insight into the FOMC’s deliberations and can generate significant market reactions.

Foreign exchange (forex, fx)

The simultaneous buying of one currency and selling of another. The global market for such transactions is referred to as the “forex” or “FX” market.


The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.

Forward points

The pips added to or subtracted from the current exchange rate to calculate a forward price.


A name for the index of the top 40 companies (by market capitalization) listed on the French stock exchange. FRA40 is also known as CAC 40.

FTSE 100

The name of the UK 100 Index.

Fundamental analysis

The assessment of all information available on a tradable product to determine its future outlook and therefore predict where the price is heading. Often non-measurable and subjective assessments, as well as quantifiable measurements, are made in fundamental analysis.


Refers to hedge fund types active in the market; also used as another term for USD/CAD pair.


An agreement between two parties to execute a transaction at a specified time in the future when the price is agreed in the present.



Group of 7 Nations – United States, Japan, Germany, United Kingdom, France, Italy and Canada.


Group of 8 – G7 nations plus Russia.

Gap / Gapping

A quick market move in which prices skip several levels without any trades occurring. Gaps usually follow economic data or news announcements.

Gearing (also known as leverage or margin)

Gearing refers to trading a notional value that is greater than the amount of capital a trader is required to hold in his or her trading account. It is expressed as a percentage or a fraction.


An index of the top 30 companies (by market capitalization) listed on the German stock exchange – another name for the DAX.


Refers to a bid being hit or selling interest.

Giving it up

A technical level succumbs to a hard-fought battle.


Greenwich Mean Time – The most commonly referred time zone in the forex market. GMT does not change during the year, as opposed to daylight savings/summer time.

Going long

The purchase of a stock, commodity or currency for investment or speculation – with the expectation of the price increasing.

Going short

The selling of a currency or product not owned by the seller – with the expectation of the price decreasing.

Gold (Gold’s relationship)

Commonly accepted that gold moves in the opposite direction of the US dollar. The long-term correlation coefficient is largely negative, but shorter-term correlations are less reliable.

Gold certificate

A certificate of ownership that gold investors use to purchase and sell the commodity instead of dealing with transfer and storage of the physical gold itself.

Gold contract

The standard unit of trading gold is one contract which is equal to 10 troy ounces.

Good for day

An order that will expire at the end of the day if it is not filled.

Good ’til cancelled order (GTC)

An order to buy or sell at a specified price that remains open until filled or until the client cancels.

Good ’til date

An order type that will expire on the date you choose, should it not be filled beforehand.


Nickname for the US dollar.

Gross domestic product (GDP)

Total value of a country’s output, income or expenditure produced within its physical borders.

Gross national product

Gross domestic product plus income earned from investment or work abroad.

Guaranteed order

An order type that protects a trader against the market gapping. It guarantees to fill your order at the price asked.

Guaranteed stop

A stop-loss order guaranteed to close your position at a level you dictate, should the market move to or beyond that point. It is guaranteed even if there’s gapping in the market.

Gunning, gunned

Refers to traders pushing to trigger known stops or technical levels in the market.



Every 100 pips in the FX market starting with 000.

Hawk – hawkish

A country’s monetary policy-makers are referred to as ‘hawkish’ when they believe that higher interest rates are needed, usually to combat inflation or restrain rapid economic growth or both.


A position or combination of positions that reduces the risk of your primary position.

Hit the bid

To sell at the current market bid.


A name for the Hong Kong Hang Seng Index.