Bid price The price at which a market is willing to purchase. Call money Money loaned by a financial institution on a very short-term basis which can be called the same day or at one or two days’ notice. Call option An option to sell a commodity or asset (currency) at an agreed-upon price on or before a particular date. Counter currency The second named currency in a currency pair.
Central bank The national bank of a sovereign state that provides financial and banking services to its government and commercial banking system, implements monetary policy, and issues currency. Contra currency In a forex trade, the currency for which the dealt currency is traded.
For example, in a USD/CHF trade the US dollar is the dealt currency and the CHF (Swiss Franc) is the contra currency. Convertibility The ease with which a currency can be freely exchanged or converted into another currency. Credit card rate The foreign exchange rate offered by a credit card company for transactions in a foreign currency using their credit card. Credit card rates vary by issuer of the credit card, but are typically a premium of 2−5% above the Spot Exchange Rate. Cross rate An exchange rate between two currencies expressed in reference to a third currency, typically the US dollar. Currency The system of money in general use in a country or currency zone.
Examples include the US dollar, Swiss franc, and European Euro. Currency pair Two currencies that constitute a foreign exchange rate: the base currency and the counter currency. For example: USD/EUR. Dealt currency In a forex trade, the currency that specifies the unit of the trade.