Market Maintanance Margin Managed float


 

123 Flash Menu Placeholder.


Term Definition: # |
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

 

Maintenance Margin Requirement The minimum margin balance necessary to maintain the open positions in a customerís account.
Make a market A dealer is said to make a market when he/she quotes bid and offer prices at which he/she stands ready to buy and sell. 
Managed float When the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a certain direction. 
Margin The amount of cash that Delta Stock requires a customer to deposit or maintain in the customerís account in connection with the customerís trading activity.
Margin Call A demand for the deposit of additional margin as described in the Customer Agreement.
Market Maker  A dealer who supplies prices and is prepared to buy or sell at those stated bid and ask prices. A market maker runs a trading book.
Market Order An order to buy or sell the identified currency or pairs of currencies at the current market price. An order to buy is executed at the ask price; an order to sell is executed at the bid price.
Market Rate/Quote The current quote of a currency pair.
Mark-to-Market Process of reevaluating all open positions with the current market prices. These new values then determine margin requirements.
Market Value The dollar value determined by the current foreign exchange rates that the customer would receive if the position were liquidated for immediate delivery in the relevant market.
Mark to Market The process of recalculating the value of the open positions in a foreign currency trading account, assuming all open positions were liquidated at current market rates.
 
Maturity The date on which payment of a financial obligation is due.
Mid-price or middle rate The price halfway between the two prices or the average of both buying and selling prices offered by the market makers. 
Minimum price fluctuation The smallest increment of market price movement possible in a given futures contract. 
Momentum investor A market participant who increase market exposure when the market is rising and decreases exposure or goes short when the market is declining.
M0: cash in circulation.Only used by the UK.
M1: cash in circulation plus demand deposits at commercial banks. There are variations between the precise definitions used by national financial authorities.
M2: Includes demand deposits time deposits and money market mutual funds excluding large CDs.
M3: In the UK it is M1 plus public and private sector time deposits and sight deposits held by the public sector.
M4: In the US it is M2 plus negotiable CDs.
Maintenance margin: The minimum margin which an investor must keep on deposit in a margin account at all times in respect of each open contract.
Make a market: A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.
Make up day: The day when banking figures need to be compiled for central bank reporting.
Managed float: When the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a required direction.
Margin call: A demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse future price movements.
Margin: (1)Difference between the buying and selling rates, also used to indicate the discount or premium between spot or forward. (2)For options the sum required as collateral from the writer of an option.  (3)For futures a deposit made to the clearing house on 
Marginal Risk: The that a customer goes bankrupt after entering into a forward contract. In such an event the issuer must close the commitment running the risk of having to pay the marginal movement on the contract.
Mark to market: The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.
Mark up: Premium
Market amount: The minimum amount conventionally dealt for between banks.
Market Day: Business day, a day when bond market is open and payments may be made. Non market day is when market is closed.
Market maker: A market maker is a person or firm authorized to create and maintain a market in an instrument.
Market if Touched: An order that becomes a market order if the specified price is reached.
Market order: An order to buy or sell a financial instrument immediately at the best possible price.
Marshall - Lerner: A model that states that if the sum of the elasticities of demand for a country's and that of the imports exceed one, then devaluation will have a positive effect upon the trade balance.
Marry: Where a dealer is able to match two customer deals which off set one another.
MAS: Monetary Authority of Singapore.
Matched book: If the distribution of the maturities of a banks liabilities equal that of its assets, it is said to be running a matched book.
Matching: The process of ensuring that purchases and sales in each currency and deposits given and taken in each currency are in balance, by amount and maturity
MATIF: Marche a Terme International de France
Maturity date: The last trading day of a futures contract. Date on which a bond matures, at which time the face value will be returned to the purchaser. Sometimes the maturity date is not one specified date but a range of dates during which the bond may be repaid.
MIBOR: Madrid Inter-bank Offered Rate.
Micro economics: The study of economic activity as it applies to individual firms or well defined small groups of individuals or economic sectors.
Mid Office: The control of the trading activity including position keeping.
Mid-price or middle rate: The price half-way between the two prices, or the average of both buying and selling prices offered by the market makers.
Milliard: European term for 1,000 million.
Mine: Expression used to indicate that the contacting party is willing to buy at the rate offered by the quoting bank.
Minimum price fluctuation: The smallest increment of market price movement possible in a given futures contract.
Minimum Reserve: Reserves required to be deposited at central banks by commercial banks and other financial institutions. Sometimes referred to as Registered Reserves.
Mio: Million.
Mismatch: (1) A mismatch between the interest rate maturities of a banks assets and liabilities. (2) Forward purchases differ in the value date from the forward sales in a given currency.
MITI: Japanese ministry of International Trade & Industry.
MM: Money Markets
Monetarism: A school of economics which believes that strict control of money supply is the principal tool for implementing monetary policy, especially against inflation. Policies include cuts in public spending and hopefully temporary high interest rates.
Monetary Base: Currency in circulation plus banks' required and excess deposits at the central bank.
Monetary Easing: A modest loosening of monetary constraint by changing interest rate, money supply, deposit ratios etc..
Monetary Union: An agreement between countries to maintain a fixed exchange rate between their currencies. A process which the EMS is intended to lead to, especially after the Maastricht Treaty.
Moneyness: The extent to which an option is in or out of the money, expressed as a percentage of the current spot, forward or future depending upon the nature of the underlying asset. Positive moneyness is in the money.
Money Market: A market consisting of financial institutions and dealers in money or credit who wish to either borrow or lend.
Money Market Operations: Comprises the acceptance and re-lending of deposits on the money market.
Money Stock: A measure of German money supply, being cash and banks' minimum reserves on domestic liabilities (sight, statutory notice, and time deposits). Used by the Bundesbank until 1987 as its monetary target.
Money Supply: The amount of money in the economy, which can be measured in a number of ways. See definitions of M0-M4.
Moral Suasion: When monetary authorities and governments try to influence the markets by persuasion rather than regulation or the its threat.
Most Favoured Nation (MFN): An undertaking to give the rate of tariff concession offered to members of the GATT. More concessionary rates can exist.
Moving Average: A way of smoothing a set of data, widely used in price time series.
Multiple Exchange Rates: Different exchange rates for different types of transaction. The South African Rand is an example.
Mutual fund: An open-end investment company. Equivalent to unit trust.

Term Definition: # | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

 

Copyright © 2003-2016   Swiss Investment Bank Account Consulting AR LTD

The information contained in this Website is not meant to substitute qualified legal advice given by a specialist knowing your particular situation. We are not a bank and canít be held responsible for any loss or damages whether direct, incidental, indirect, special, or consequential, among others, relating access to this Web site. Read our Disclaimer / Terms and Conditions.