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Term Definition: # |
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Value Date With respect to any contract, the applicable settlement date specified in the confirmation that relates to the particular contract. A Value Date must fall on a business day in the countries of the traded currencies.
Variation Margin An additional margin requirement that a broker will need from a client due to market fluctuation.
Volatility  A statistical measure of a market or a security's price movements over time, calculated by using standard deviation. High volatility is associated with a high degree of risk.
Vostro Account A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn as a result of a transaction. 
Valeur Compensee: Exchange rate quotation on a reciprocal basis. See domestic quote.
Value Date: Payments are said to be " valeur compensee" when payment by one party in one centre and settlement by the other party in another centre takes place on the same day.
Value Spot: For exchange contracts it is the day on which the two contracting parties exchange the currencies which are being bought or sold. For complete discription see the chapter on trading.For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country(ies) of the foreign currency(ies). The value date then moves forward a day.The enquirer is the party who must make sure that his spot day coincides with the one applied by the respondent. The forward months maturity must fall on the corresponding date in the relevant calendar month. If the one month date falls on a non-banking day in one of the centres then the operative date would be the next business day that is common. The adjustment of the maturity for a particular month does not effect the other maturities that will continue to fall on the original corresponding date if they meet the open day requirement. If the last spot date falls on the last business day of a month, the forward dates will match this date by also falling due on the last business day. Also referred to as maturity date.
Value Today: Transaction executed for same day settlement; sometimes also referred to as "cash transaction"
Vanilla: A simple option whose terms and conditions do not include any provisions other than exercise style, expiry and strike. To compare with exotic options which have additional terms.
Variation margin: Profits or losses on open positions in futures and options contracts which are paid or collected daily.
Vega: Expresses the price change of an option for a one per cent change in the implied volatility.
Velocity of Money: The speed with which money circulates or turnsover in the economy. It is calculated as the annual national income: average money stock in the period.
Vertical (bear or bull) spread: The sale of an option with a high exercise price and the purchase (in the case of a bull) or the sale (in the case of a bear ) of an option with a lower exercise price. Both options will have the same expiration date.
VDU: Video display unit, sometimes a computer terminal or vendor screen.
VIBOR: Vienna Inter-bank Offered Rate.
Visible Trade: Trade in merchantise goods as compared with capital flows and invisible trade.
Volatility: A measure of the amount by which an asset price is expected yo fluctuate over a given period. Normally measured by the annual standard deviation of daily price changes. (historic). Can be implied from futures pricing, implied volatility.
Vostro Account: A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.

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