Abandon: It refers to a situation when an options holder decides not to exercise or offset an option.

Abandoned Option: It refers to an option that is not sold or exercised by the maturity date.

ABC Wave: It is a term commonly used in Elliott Wave to describe a simple correction after a trending move and includes three waves (waves A, B, and C) that form a countertrend or corrective price movement.

Abatement: The term refers to the suspension of criminal charges or rebate of taxes.

Abeyance: The word denotes an estate with no legal title holder or owner.

Ability to pay: It denotes ability of one to meet his existing or future liabilities.

Above par: The term is used to classify a situation wherein the market value of a security such as bond or stock is above its face value.

Absolute advantage: The term denotes the potential of a state, country, or entity to produce or offer a given good or service at a lower per unit cost than other states, countries, or entities to produce that good or service.

Absolute priority rule: The rules specifies the peeking order of creditors during proceedings of bankruptcy and establishes the fact that secured loan creditors should be paid first when compared to other creditors in the event of bankruptcy.

ACH: ACH stands for automatic clearing house and is used to denote a nationwide electronic funds transfer network that enables distribution of electronic credit and debit entries to bank accounts and to settle such entries for the participating financial institutions.

Accommodation trading: It is a non-competitive trading that is used for assisting one trader by another with illegal trades.

Accommodative monetary policy: The Central bank policy is aimed to pursue growth at the cost of potential inflationary pressures that tend to accompany wage growth and high demand.

Account information: It refers to the section of a trading screen that depicts the available money in a trader's account and includes net profit or loss of all open positions.

Account statement: This refers to soft or hard copy of operational data about client bill at the broker for a specified period of time.

Accruals: This term denotes the apportionment of premiums and discounts on forward exchange transactions that are related directly to deposit swap deals over the period of each deal.

Accumulative Swing Index: Based on the Swing Index, ASI is a wave or swing system for capitalizing on breakout patterns and is commonly used for confirming the trendline breakouts on price charts.

Action type: It can be classified as a category of rule violation, trade practice violation, or sales practice violation.

Actuals: It refers to the cash or physical commodity from a commodity futures contract.

Actualize: The term denotes underlying instruments or assets that are traded in the cash market.

Add-on method: In this payment method, interest is added onto the principal at maturity or payment dates of interest.

Adaptive techniques: The term represents the alternative to fixed parameter techniques. These techniques are used for continually adjusting formula weights to smoothen the price series by considering factors like recent volatility adjustments or the error between forecasted and real price.

Adverse Excursion: Formulated by John Sweeney, it is used to review past trades and scans for the typical open loss and largest open loss in a trading system besides determining stop loss points.

Andrews Method: Developed by Dr. Alan Andrews and also known as the Andrews pitchfork, this refers to a technique to determine upper and lower parallel lines for a trend in order to come out with a potential trend channel.

Agent Bank: In general terms, an agent bank is bank acting for a foreign bank. In the Euro market, this term denotes the one appointed by other banks in the syndicate for handling loan administration.

Adjudication: The term refers to controversy and pronouncement of an evidence-based judgment.

Adjustment: This refers to an official action, usually, by either change in the official currency rate or in the internal economic policies for correcting a payment imbalance.

Adjustable Peg: This term is used to denote an exchange rate regimen wherein the exchange rate of a currency is pegged or fixed in context to a stronger currency, such as the Euro or the US dollar. This rate is adjusted, occasionally, for improving the competitive position of a country.

ADX (Average Directional Index): It refers to the standard technical indicator used for measuring the strength of a trend.

Against Actuals: This term is used to classify a transaction used by two hedgers interested in exchanging futures for cash positions.

Aggregation: The term refers to a policy when all futures position owned by a trader or group of traders is blended for determining reporting status and speculative limits.

Aggregate demand: The term refers to total demand for goods and services in an economy and consists of public and private sector demand for goods and services within the country. It also consists of consumers and companies in other countries for goods and services.

Aggregate Risk: This term is used to denote the exposure of a bank to forex contracts from a single customer.

Aggregate supply: Aggregate supply denotes total supply of goods and services in an economy from domestic sources, including imports, which is available to meet aggregate demand.

Agricultural Trade-Option Merchant: Popularly termed as ATM, the term is used to denote an individual or company that offers trades positions for sale.

Agio: It refers to the fee charged for exchanging money from one currency to another.

All or None: This refers to a limit price order that necessitates the complete order to be filled at the stated price or not at all.

API Trading: API stands for application programming interface and API trading is the kind of trading conducted via API that enables users to build custom trading functionality into their own forex software systems.

Appreciation: It is name of the currency option when it improves or strengthens in price due to market demand response.

Arbitrage: It refers to profits accruing from differences in the price of a single currency pair, which is traded on more than one market.

Arbitration: The term classifies disputes between members or between members and customers.

Around: The term is used for quoting forward "premium or discount".

Ascending Triangle: The term refers to a corrective trading pattern that originates between two converging lines where the support line is rising and the resistance line is horizontal.

At Best: The term denotes an instruction to a dealer to buy or sell at the best possible rate.

At or Better: This is an order to deal at a specified rate or a better rate.

Asian Option: This refers to an option that pays off as per the average prices of the underlying asset over time.

Ask: This is used to denote the price at which sellers are willing to sell a currency pair and is also known as "offer", "ask rate", and "ask price." In other words, Ask is the willingness to sell a futures contract at a specified price.

Asset: Any item of economic value owned by an individual or corporation, particularly which could be converted to cash (which is also an asset).

Asset allocation: It means division of instrument funds among markets for attaining maximum return or diversification.

Aussie: This is dealer slang for the currency pair, AUD/USD.

At-the-Money Option: This can be described as an option if the strike price is the same as the spot price of an underlying security on which the option is written. Such an option has only time value and no intrinsic value is attached or offered.

Authorized dealer: A dealer authorized to deal in foreign exchange as per the laws and policies of the regulatory body is an authorized dealer.

Automated dealer: A trader who makes use of an automated forex trading system to input trades without human intervention is an automated dealer.