TRADER'S DICTIONARY - F

Face Value

Value of a bond to be paid out at maturity. Also known as Par Value.

Factory Orders

Economic indicator that measures new orders for both durable and nondurable goods.

Fast Market

Strong pressure in the market, in which prices are moving too quickly to be disseminated.

Federal Deposit Insurance Corporation (FDIC)

US regulatory agency charged with regulating US banks. The FDIC provides insurance up to $100,000 per account.

Federal Funds Rate (FFR)

Interest rate at which private depository institutions (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions, usually overnight. The FFR is guided (but not determined outright) by the Federal Open Market Committee.

Federal Open Market Committee (FOMC)

Committee made up of Federal Reserve members, which meets eight times a year to discuss/ implement monetary policy.

Federal Reserve Bank (Fed)

The central bank of the United States, responsible for using monetary policy to promote economic growth and price stability.

Federal Reserve Board

Senior members of the Federal Reserve, each of whom is appointed by the US President. The chairman of the Fed Reserve Board serves a 4-year term, while the other members serve 14-year terms.

Fiat Currency

Money declared by a government to be legal tender, and not backed by any other commodity, such as gold.

Fibonacci Numbers

Sequence of numbers in which each successive number is the sum of the two previous numbers. Fibonacci numbers are used in financial/currency markets to develop trading algorithms, applications and strategies. The four most common forms are the Fibonacci fan, Fibonacci Arc, Fibonacci Retracement and the Fibonacci Time Extension.

Fill

Execution of an order to buy or sell.

Fill or Kill

Type of order which is either completed or rejected in full.

Fill Price

Price at which a buy or sell order is executed.

Firm Quote

Order to buy or sell a security/currency that is not subject to cancellation.

First In First Out (FIFO)

Account rule that dictates all positions opened within a particular currency pair are liquidated in the order in which they were originally opened.

Financial Services Authority (FSA)

Agency designated by the UK Treasury to regulate the UK financial industry.

Fiscal Policy

Refers to tax policy, government spending, and other government initiatives directed at optimizing economic performance.

Fisher Effect

Theory that money moves from low-yielding currencies into higher-yielding currencies, as investors chase higher interest rates.

Fixed Exchange Rate

Exchange rate regime in which a currency is pegged by the Central Bank so that it cannot fluctuate against other currencies. Currencies can be pegged to other currencies or commodities, such as gold.

Fixing

A method used to determine rates/prices that seeks to balance buying and selling pressure.

Flag and Pennant

Trading pattern characterized by an upward movement with a large slope followed by a period of consolidation. It is considered a bullish pattern overall, as the pattern is expected to continue rising.

Flat/Square

A situation in which a position is closed, or two positions exist that cancel each other out.

Flat on a failure

Recommendation to take profits on a long trade if the exchange rate tests but fails to break through a specified level.

Floating Interest Rate

An interest rate that adjusts in accordance with market forces. Opposite of a fixed interest rate.

Floor

Lowest acceptable limit as restricted by controlling parties. Opposite of a cap.

Floortion

A type of compound option, whereby the purchaser has the right, but not the obligation, to enter into a floor at a predetermined rate on a predetermined date.

Force Majeure

Contractual clause that relieves either party from fulfilling the obligations of the agreement as a result of an "extraordinary event."

Foreign Exchange (Forex)

The buying and selling of currencies.

Foreign Currency Effect

Potential for changes in exchange rates to affect returns on overseas investments.

Forward Contract

Derivative Agreement between two parties to buy or sell an asset at a certain future time for a certain price agreed today. This is in contrast to a spot contract, which is an agreement to buy or sell an asset today.

Forward Points

Pips added to or subtracted from the current exchange rate to calculate a forward price.

Forward Rate

Interest rate for a future period. For example, it could refer to a one-year interest rate beginning six months from now.

Forward rate agreement (FRA)

Interest rate contract in which buyer and seller agree to exchange the difference between the current interest rate and a pre-agreed fixed rate.

Free Reserves

Margin by which reserves exceed borrowings. Also known as excess reserves.

Front Office

Refers to those personnel with whom customers have the opportunity to interact.

Fundamental Analysis

The analysis of economic indicators and political and current events that could effect the future direction of financial markets. Opposite of Technical Analysis.

Fundamental Trader

A currency trader that relies on fundamental analysis.

Funding Currency

A comparatively low-yielding currency, which is used to borrow money so that the proceeds can be invested in a higher-yielding currency.

Futures Contract

Standardized contract to buy or sell a specified commodity/asset of standardized quality at a certain date in the future, at a market determined price (the futures price). The contracts differ from forward contracts in that they are traded on a futures exchange.

FX Forward

Obligation to buy or sell a currency at an agreed price on an agreed date. The forward or future price is decided by adjusting the spot or current price to account for changes in interest rates.

UWC Has Been Re-Branded

Dear IAFT customers!

We are informing you, that UWC has been re-branded. Due to expansion of its activities, the UWC brokerage company provides traders with a newly launched brand - Mayzus Investment Company Ltd. Mission of the Mayzus Investment Company Ltd. company is to create a world famous brand and one of the most successful international corporations. In addition, the company strives to provide its clients with the best services, insurance and protection.

Operating conditions with this broker through the IAFT has not been changed. All customers who opened an account with this company before, will remain in the IAFT's group and and will continue working with Mayzus Investment Company Ltd. on the same terms.

Best regards,
IAFT administration

Interesting Facts About Monday

Monday. The first day of the work week we all dread to see. The Mamas and the Papas sang "Every other day of the week is fine- yeah! But whenever Monday comes, but whenever Monday comes, you can find me cryin' all of the time" in their 1966 hit, "Monday, Monday." The Bangles referred to it as being frenzied in their 1986 hit song "Manic Monday." No one has much good to say about this day that follows Sunday and precedes Tuesday. Read this informative article and find out some interesting facts about Monday, the second day of the week, that might make you feel differently about this day!

Named Days 
Monday, which originally got its name from the moon, has many days named for it. These include: Cyber Monday (follows Thanksgiving- refers to the increase in online sales); Easter Monday (follows Easter and is celebrated as a holiday in some cultures); Handsel Monday (first of the new year in which gifts are given to convey good wishes in Scotland and Northern England; Clean Monday (or Ash Monday- the first day of Lent. Refers to being free from sin);
Big Monday (ESPN's College Basketball presentation); Black Monday (October 19, 1987- the day the Dow Jones Industrial Average dropped 508 points.)

An interesting fact about Monday, the second day of the week, is that it's also referred to as "Blue Monday." The name is thought to have started because the first day of the work week used to be set aside for doing the laundry. Bluing was used to keep white clothes from becoming dingy and gray. From that product, wash day became known as "Blue Monday."

Even though Monday isn't always wash day today, the term "Blue Monday" still exists. However, it's meaning is different. It now refers to the day when employees have to return to work after a weekend break. Another interesting fact about Monday, the second day of the week, is it's the most likely day for workers to have heart attacks. The British Medical Journal reported a 20% increase in heart attacks on Mondays as opposed to the other days of the week. The attacks may be caused by stress and high blood pressure caused by returning to work.

Monday Holidays 
Several holidays always fall on a Monday. Some of these include Labor Day, Memorial Day, President's Day, Columbus Day and Veteran's Day.

The Worst Day 
In many cultures, the first day of the work week holds the honor of being the worst day. Another interesting fact about Monday, the second day of the week, is, the French used to call automobiles that turn out to be lemons, "Monday Cars."

On the Brighter Side 
Believe-it-or-not, there are two positive things about Monday. First, if you were born on this day, then you're not homely. Afterall, the old rhyme goes, "Monday's child is fair of face". That's a good thing. And second, when you're going to shop for a new car, do it on a Monday. Car sales people make the bulk of their sales on the weekends. When Monday rolls around, there are usually few customers in sight, and the weekend is a long ways off. That's why car sales people
are more desperate on Monday, and they'll be more willing to cut you a deal.

Miscellaneous 
And finally, an interesting fact about Monday is, it's associated with Silver when it comes to Alchemy, an ancient chemical science. According to Astrology, Monday is is ruled by the zodiac signs Cancer, June 22 to July 22.

The Rebate Project!

The International Association of Forex Traders has developed a rebate project for those traders who want to earn more than others.

To receive rewards, open a live trading account with a brokerage company through IAFT referral link and add it to the Personal Office of the IAFT official website.

After your account is confirmed you will receive a rebate of 60% from spread for every lot you have traded with your broker even if your deal was lossmaking one.

IAFT - everything we do, we do it for our clients!

Money Rules

Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.
Warren Buffett

Daily accruals by IAFT!

Besides cooperating with the most reliable brokerage companies, a traders union always works on improving trading conditions for our traders. 

IAFT is glad to consider our traders` requests and offers. 

That is why we welcome you with daily accruals of rewards.

Accruals are performed on the results of a trading day till 10:00 a.m. CET the day following the reporting one.

Start your trading experience in Forex with IAFT and receive a spread rebate everyday!

Proverb

Let us not be satisfied with just giving money. Money is not enough, money can be got, but they need your hearts to love them. So spread your love everywhere you go.

Mother Teresa