FX Glossary(S)

S

Short

It’s a state when certain currency is in the position to sell. For example, in the case of “dollar-short” in the dollar/yen, it means that you are selling the dollar and buying yen. In this case you will be able to earn profit if the dollar depreciate/yen appreciate continues. However, in exchange trading, because you will receive the interest rate of the currency you are buying and pay the interest of the currency that you are selling, in case of 「dollar-short」, if the interest of yen is higher than the interest of dollar, the portion suitable for the difference in the corresponding interest rate during holding the position, will be applied as a cost. Therefore, when the currency with high interest is short, if you don’t stop the transaction in a short period, it will mean you will be eating the profit to your cost. You need to be careful. [← → Long]

Short Squeeze

To loss cut the selling position on hold (short) and repurchase. Conversely, to loss cut the buying position on hold and sell (long) is known as "dumping", "throw".

Short-term Money Market

The financing market of the period less than a year.

Slippage

Occurring at the time of establishment of the stop order, it said to be the difference between the actually contracted rate and the specified rate. There are cases that this slippage becomes bigger depending on the market condition, such as sudden drop / sudden rise of the market.

Sovereign Risk

If refers to the risk that cannot be executed because of the situation of the counter party’s country. Such as the occurrence of sudden political change have been imposed, capital inflows regulation, risk that occurs when the execution of exchange contract becomes difficult. It is also referred to as country risk. [= Country Risk]

Speculation

To carry out trading for the purpose of obtaining the benefits of changes in rate

Speculator

The investors who performs trading for the purpose of obtaining the benefit due to changes in rate

Spot

In the foreign exchange market refers to spot trading, the settlement date after two business days from the transaction date.

Spot Rate

Although it known that spot trading in foreign exchange is spot transaction, this spot exchange rate is said to be the spot rate. In general, exchange rates which are conveyed in TV shows represent the spot rate.

Spread

Spread means "to spread, spread, price range, balance", and spread in the FX refers to the difference between the presentation rate of the currency pair bid (Bid) and selling price (Ask, Offer). For example, in the case of US dollar / yen, the rate is "101.15-20", spreads will be 0.05 yen which means the cost for our customers. 

Square

The appreciation of buying and selling in the foreign currency trading is even, it can also become zero.

Starring

This is the pen name of international pound. Pound is the European currency, but the euro has become an independent currency without participation. Looking against the yen, due to the relatively large fluctuations in foreign exchange rates, it is sometimes said to be "like a speculative stock."

Steeping

The level of the interest rate on the vertical axis, although it is said that the period of time taken in the graph to the horizontal axis is called the yield curve (interest rate curve), but, in general, interest rates becomes higher as the period is gets longer. Therefore, the yield curve (interest rate curve) usually becomes a graph of the upward-sloping. When the slope of the yield curve becomes suddenly steep (upper right), it is said to be steepening. Conversely, when the difference in short-term interest rates and long-term interest rates was reduced (it is on the slope yield curve losses) is said to be a flat.

Stop Loss Order

The loss occurred from the exchange rate by changes in your own handicap in a certain position that you are holding, in order to avoid more losses, this is said to be the order to settle the position. When the buying position is 「to sell when it lowers at a certain price、if the selling position is 「to buy back when price goes up at a certain price」, this is said to be the reverse price order. Because the basic of trade in general is to buy cheap sell high, or to sell high buy cheap, although the stop loss is in a way has unreasonable meaning, in order to leave profit in the end, because the 「To limit reduction in the loss from the negative trade」 is indispensable, it can be said that this method of ordering is very important.

Stop Order

In order to increase the revenue on the stock market and foreign exchange transactions, "buy cheap, sell high," "selling high, cheap buy back" or is the basic fact that. To do this, buy at cheaper prices than the current rate, use the limit order to sell at a higher price than the current rate. On the other hand, the Stop Order, buy if accustomed to a higher price, and sell if accustomed to cheaper price, it is how to order that. At first glance, you unreasonably visible, but it is one of the common and important risk management method in currency trading. In preparation for when the market moves contrary to expectations, a certain level or more, and when the market has moved in the opposite direction is used when it is referred to attempt to limit loss by settled position. It is very important to go carried out transactions as much as possible reduce the loss, it is how to order you want to recommend full advantage. [← → Price Limit]

Surplus-Shortage

In the Tokyo foreign exchange market, it is called a middle rate (TTM) of the index rate which is determined based on the rate of the interbank (between banks) trading at10:00 am in the morning. In the Tokyo market, to buy the dollar in this middle rate value, there are many transactions of the settlement, such as pay in $ to other party. Therefore, the TTM determined in the market in the morning of around 10 o'clock may have fairly violent fluctuation. This is because, if the balance of the dollar supply and demand is not enough dollar of the middle rate settlement, the is the need to buy the lacking amount from the market, conversely, if too much reverse (surplus), because there is a need to sell in the market.

Support Line

In the chart analysis, it refers to the occurrence of price range when the exchange rate stopped falling at the standard level for several times in the past (support line). Most of the market participants, in order to have the recognition to hinder the decline in the rate more than this, when interrupting the support line to induce stop/loss from a number of market participants, because there are cases that it further increases sudden drop, you need to be careful. On the other hand, when many market participants can easily recognize the price range so as not to let the rate rise more than that, it refers to resistance line. [← → Resistance Line]

Swap

Represents the interest rate difference between the two currencies in the transaction. To buy the currency of high interest rates, by selling the currency of low interest rates, the difference becomes a receipt. In case of reverse, it becomes payment.

Swap Point

Swap is said to be the difference between two currencies that was traded of. To buy the currency of high interest rates, by selling the currency of low interest rates, the difference becomes a receipt. In case of reverse, it becomes payment. The swap points show the interest received and paid at about 10,000 currencies per day.

Swiss Franc

This is the currency of Switzerland. The Swiss franc is the European currency, but the euro has become an independent currency without participation. Although a lot of people was buying US dollar in the folding of war, it was commonly called "US dollars of emergency". Bu in the folding of US terrorism, the buying was replaced by the Swiss franc.

S&P500

The Stock prices calculation index of Stand and Poor's in the American investment information company listed in NASDAQ, the New York Stock Exchange and the American Stock, that is calculated based on the share price of a typical 500 from the brand list. The index has been calculated market capitalization weighted average type stock index, in other words, it is being calculated by (total market capitalization of the Target brand) ÷ (total market capitalization at one point in time). By the notation points of S & P500, the unit of price movement will be 0.01 points.