Home > Help & Support > Glossary
Glossary of foreign exchange terms
We don’t like jargon any more than you do.
But if you do come across a technical term, hopefully this glossary will help clear things up.
BACS
Bankers’ Automated Clearing Services – the process for making Sterling payments via domestic banks. Mostly used for direct credits and direct debits. BACS payments tend to take three business days to clear.
Cash Transfer
The movement of funds from one entity to another. When related to moving cash from one location (country) to another, this is often interchanged with terms including; currency transfer, foreign exchange, currency converting and more.
CHAPS
Clearing House Automated Payment System – a faster way of making payments. Usually cleared on the same working day.
Currency Transfer
This is the process of moving funds from one location, and therefore currency, to another.
Exposure
Faster Payments
Foreign Exchange Market
Forward contract
A contract to exchange a specific amount of one currency for another on a future date, at a predetermined rate. A deposit is normally required for forward contracts.
Forward points
Forward rate
FX (Foreign Exchange)
GTC - Good 'Til Cancelled
Hedge
Margin
Mid-market rate
Money Transfer
OCO - One Cancels Other
Order
Spot rate
Spot Transaction
The exchange of one currency for another at a specified rate for settlement in two working days.
Stop Loss Order
Spread
Take Profit Order
Like a stop loss order, a take profit order first involves setting a currency level. Once that currency level is reached, the trade is executed in the market. The currency level used for a take profit order is always better than the current market price. This allows you to capitalise or take profit on improvements in exchange rates without having to keep an eye on the rate.
Settlement Date
Currency Converter
Businesses like yours trust WorldFirst
- Almost 1,000,000 businesses have sent $200B around the world with WorldFirst and its partner brands since 2004
- Your money is safeguarded with leading financial institutions