Wednesday, December 22, 2010

Forex Glossary - D

Day Trader

Speculators who take positions in commodities which are then liquidated prior to the close of the same forex trading day.


Dealer

An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.


Deficit

A negative balance of forex trade or payments.


Delivery

An FX (forex) trade where both sides make and take actual delivery of the currencies traded.


Depreciation

A fall in the value of a currency due to market forces.


Derivative

A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An option is the most common derivative instrument.


Devaluation

The deliberate downward adjustment of a currency's price, normally by official announcement.

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