Glossary

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Look up the meaning of hundreds of trading terms in our comprehensive glossary.

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  • Value date
    Also 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.
  • Variation margin
    Funds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations.
  • Vix or volatility index
    Shows 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.’
  • Volatility
    An active market that is experiencing rapid price changes, that can present trade opportunities.