Forex Glossary


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Online Currency Exchange: There is no central exchange for foreign exchange market. It’s a network of computers that connects banks and brokers together. Online currency exchanges are essentially forex brokers that allow delivery of traded currencies.

Outright Forward: It’s a forward currency contract with a forward price and a delivery date. It allows the investors to buy or sell a currency at a specified exchange rate on a specified date.

Overnight Limit: It is the number of trading positions a trader can carry overnight. It is regulated by the central bank and is reviewed on an ongoing basis.

Overnight Position: The trading positions that are not closed on the same day and are held overnight.

Overnight Trading: Trades that take place between 9:00 p.m. and 8:00 a.m. local time. Overnight trading is exposed to significant foreign exchange risk and overnight delivery risk.