Glossary
Popular definitions
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Value dateAlso known as the maturity date, it is the date on which counterparts to a financial transaction agree to settle their respective obligations, ie exchanging payments. For spot currency transactions, the value date is normally two business days forward.
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Variation marginFunds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations.
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Vix or volatility indexShows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely used measure of market risk and is often referred to as the ‘investor fear gauge.’
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VolatilityAn active market that is experiencing rapid price changes, that can present trade opportunities.