Sébastien Haller

A trade that cancels or offsets some or all of the market risk of an open position.

The price at which the market is prepared to sell a product. Prices are quoted two-way as bid/offer. The offer price is also known as the ask. The ask represents the price at which a trader can buy the base currency, which is shown to the right in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs. In CFD trading, the ask represents the price a trader can buy the product. For example, in the quote for UK OIL 111.13/111.16, the product quoted is UK OIL and the ask price is £111.16 for one unit of the underlying market.

A very heavy round of selling.

If a market is said to be trading offered, it means a pair is attracting heavy selling interest, or offers.

An option that pays a fixed amount to the holder if the market never touches the predetermined barrier bevel.

The precise date and time when an option will expire. The two most common option expiries are 10:00am ET (also referred to as 10:00 NY time or NY cut) and 3:00pm Tokyo time (also referred to as 15:00 Tokyo time or Tokyo cut). These time periods frequently see an increase in activity as option hedges unwind in the spot market.

The London trading session is one of four main forex trading sessions, alongside Sydney, Tokyo and New York. According to a 2019 report by IFS, the London session accounts for 34% of the trading activity on the global forex market. The trading hours for the session fall within official business hours in London, between 07:00 – 16:00 GMT (Greenwich Mean Time). Sometimes the London session is referred as the ‘European session’, as considered the financial trading capital of Europe. What is the best time to trade the London forex session? The best time to trade the London forex session depends on what you’re looking for as a trader. However, both volatility and volume tend to peak as the London session opens, during overlaps with the Tokyo and New York sessions, and when macroeconomic data is published. Toward the end of the London morning session, volatility decreases as FX traders break for lunch before the New York session.

Traders who have bought a product.

A market which has sufficient numbers of buyers and sellers for the price to move in a smooth manner.

LIBOR is a leading interest rate benchmark, set each day according to estimates from up to 18 global banks. It stands for London Interbank Offered Rate. There are LIBOR rates for multiple different currencies: including GBP, USD, EUR and more. LIBOR is calculated by surveying banks to find out the rates they would charge each other on loans of various maturities, based on the current economic outlook. The LIBOR rate is an average of what the banks will charge each other, and is then used across the global financial system, particularly for pricing derivatives. Usage of LIBOR (and other IBORs) is being phased out, to be replaced with a near-risk-free rate (RFR).