Welcome to the Omnis FX Glossary. Below is a list of some of the Foreign Exchange terms used throughout this site. If you need more help please contact us and we will be pleased to help.
Currency
The State Tender of a Country
ECB (European Central Bank)
The Central Bank of the European Union.
EFT (Electronic Funds Transfer)
Also known as a wire, or telegraphic transfer (t/t), this is the process of moving money from bank to bank electronically.
Euro
The currency used in most of Europe.
European Central Bank (ECB)
The Central Bank of the European Union.
Fixed Exchange Rate
Official rate set by monetary authorities for one or more currencies
Floating Exchange Rates
The value of a currency as decided by supply and demand.
Foreign Exchange
The exchange of foreign currency. On the foreign exchange market, foreign currency is bought and sold for immediate (spot) or forward delivery.
Forex (FX)
Industry term. Same as Foreign Exchange
Forward Contracts
Forward contracts allow the client to agree an exchange rate for their currency and fix it for up to 24 months. Clients are asked for an agreed deposit to secure the rate. The client then has access to their funds at the fixed rate given on entry at any time. This is ideal for a variety of property transactions.
IBAN
International Bank Account Number
Interbank Rates
The Foreign Exchange rates at which large international banks quote other large international banks.
International Bank Account Number (IBAN)
A standardised format adopted by European Union member nations to facilitate cross-border money transfers within the European Union.
Limit orders
If you only wish to exchange your funds at a specified rate, your account manager can monitor the market and buy the currency at the level agreed.
Quote
An indicative market price, normally used for information purposes only.
Rate
The price of one currency in terms of another, typically used for dealing purposes.
Risk Management
the employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk
Spot deals
A trade is agreed based on the current market rate in the live market. A client can call their account manager and book the exchange rate instantly. Once this is done, Omnis FX will transfer the currency to the nominated account on receiving funds.
Spot Rate
The current rate for a spot transaction.
Stop orders
Stop orders can be used to protect against the exchange rate moving adversely. It can also be used to allow clients to lock in a worst case scenario while holding out for a better rate.
Spread
The difference between the bid and offer prices. This is usually used for Interbank trade of currencies.
Telegraphic Transfer (T/T)
The old terminology for what is now called an electronic funds transfer (EFT) or wire.
