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S

Same day transaction

A transaction that matures on the day the transaction takes place.

Scale Down (or Up)

To purchase or sell a scale down means to buy or sell at regular price intervals in a declining market. To buy or sell on scale up means to buy or sell at regular price intervals as the market advances.

Scalper

A speculator on or off the trading floor of an exchange who buys and sells rapidly, with small profits or losses, holding his positions for only a short time during a trading session. Typically, a scalper will stand ready to buy at a fraction below the last transaction price and to sell at a fraction above, e.g., to buy at the bid and sell at the offer or ask price, with the intent of capturing the spread between the two, thus creating market liquidity.

Seasonality Claims

Misleading sales pitches that one can earn large profits with little risk based on predictable seasonal changes in supply or demand, published reports or other well-known events.

Seat

An instrument granting trading privileges on an exchange. A seat may also represent an ownership interest in the exchange.

Securities and Exchange Commission (SEC)

The Federal regulatory agency established in 1934 to administer Federal securities laws.

Sell Limit

Specifies the lowest price at which the sale of Base Currency in a Currency Pair can be executed. The limit price in a Sell limit order should be ABOVE the current dealing Bid price.

Sell Stop

A Sell Stop is a Stop Order that is placed BELOW the current dealing Bid price and is not activated until the market Bid price is is at or below the stop price. The sell stop order, once triggered, becomes a market order to sell at the current market price.

Seller's Call

Seller's Call, also referred to as call purchase, is the same as the buyer's call except that the seller has the right to determine the time to fix the price.

Seller's Market

A condition of the market in which there is a scarcity of goods available and hence sellers can obtain better conditions of sale or higher prices.

Settlement date

The date by which an executed order must be settled by the transference of instruments or currencies and funds between buyer and seller.

Settlement Price

The daily price at which the clearing organization clears all trades and settles all accounts between clearing members of each contract month. Settlement prices are used to determine both margin calls and invoice prices for deliveries. The term also refers to a price established by the exchange to even up positions which may not be able to be liquidated in regular trading.

Shooting Star

Shooting Star Japanese Candlestick is a bearish single day pattern that appears during an uptrend. It opens higher, trades still higher, creating a long upper shadow. It then closes near its open, leaving no lower shadow, and a small real body. Looks like the Inverted Hammer but gives a bearish signal.


Short

Having an open position that was created by selling a currency. If you sold the EUR/USD, the client is said to be "Short" the currency pair (sold the base currency). If a client bought the EUR/USD, he would be long the currency pair, but short USD currency. Foreign exchange transactions assume being long one currency and short another.

Short Covering

Buying to unwind a short position of a particular currency pair

Short Position

An investment position that benefits from a decline in market price. When the base currency in the pair is sold, the position is said to be short.

Sophisticated Foreign Exchange Investor

Investor possessing sufficient knowledge, experience and/or capitalization to trade in Foreign Exchange market. The investor has to decide for him/herself if Forex is a suitable investment vehicle for his or her purposes.

Sovereign risk

(1) Risk of default on a sovereign loan; (2) Risk of appropriation of assets held in a foreign country.

Speculative

Trading Foreign Exchange is speculative in that there is no guarantee that those who invest in Foreign Exchange will make any money. The conditions also exist that the client can lose his entire deposited margin making trading FX highly speculative. Those who trade foreign exchange should only risk that capital which is considered risk capital, defined as the amount of which if lost would not, change the Customer's lifestyle or the Customer's family's lifestyle.

Speculator

An individual who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements.

Spot

Spot or Spot date refers to the spot transaction value date that is two business days from the deals Trade Date. In instances where there is holiday, weekend or other day when the banks in the countries represented by the currencies in the currency pair are closed, the spot date will be adjusted forward to the next value date where the banks are open. In the case of US Dollar versus the Canadian dollar, the spot date is 1 business day forward from the Trade Date.

Spot price/rate

The price at which a currency pair is currently trading in the spot market.

Spot Settlement Basis

The standardized settlement procedure for foreign exchange transactions that sets the value date 2 business days forward from the Trade Date (see: Spot).

Spread

The difference between the bid and ask price for a foreign currency price.

Square

The condition whereby the client's purchases and sales are in balance and there is no open position.

Squawk Box

A speaker connected to a phone often used in broker trading desks.

Sterling

slang for British Pound.

Stop loss order

A specific order entered by the client to close out a position if the price moves in the opposite direction of the position by a certain amount of pips. In most cases Stop Orders are executed as soon as the market reaches or goes through the Customer set Stop Price level. Once issued, the stop order will be held pending until the stop price is reached. Stop orders may be used to close out a position (Stop Loss), to reverse a position, or open a new position. The most common use is to protect an existing position (by limiting losses or protecting unrealized gains). Once the market hits or goes through the stop price, the order is activated (triggered) and FXDD will execute the order at the next available price. Unlike a Limit Order, a Stop Order does not guarantee execution at the stop price. Market conditions including volatility and lack of volume may cause a Stop order to be executed at a price different than the order.

Stop Price Level

The client entered price that activates a Stop Loss Order.

Support Levels

A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.

Swap

A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.

Sweep/Sweeping

When a client of FXDirectDealer has a P/L in another currency other than US dollars, the P/L must be converting at the close of each business day into US dollars, at an exchange rate prevailing at the time (known as the Conversion Rate). This process is called sweeping. Note that until the P/L is swept, the clients Account Value may fluctuate slightly (up or down) as exchange rate for the Profit and Loss currency changes. For example, if the client has a profit in Yen, if the value of the yen rises after the position is closes, but before the profit is swept into dollars, the Account Value will change. The change is only on the profit/loss amount so the effect is minimal.

SWIFT

Society for World-wide Interbank Telecommunications is Belgian based company that provides the global electronic network for settlement of most foreign exchange transactions. The society is also responsible for the standardization of the currency codes used for confirmation and identification purposes (i.e.. USD = US Dollars, EUR = The Euro, JPY = Japanese Yen)

Swissy

Market slang for Swiss Franc.

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4 Comments:

Anonymous Anonymous said...

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We're all getting ready for Christmas and there aren't many trading days left this year. Although I'm still trying to grapple with where the dollar's headed next year. My feeling is that it's going to be much the same as this - all over the place, but possibly on the ascendant over the year, mainly due the instability in the Eurozone.

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A merry Christmas to you and yours! Amon

2:54 PM

 
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11:56 PM

 
Anonymous Anonymous said...

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7:06 PM

 
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6:26 AM

 

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