A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Same day transaction - A transaction that matures on the day the transaction takes place.
Sell Limit - Specifies the lowest price at which the sale of Base Currency in a Currency Pair can be executed. The limit price in a Sell limit order should be ABOVE the current dealing Bid price.
Sell Stop - A Sell Stop is a Stop Order that is placed BELOW the current dealing Bid price and is not activated until the market Bid price is at or below the stop price. The sell stop order, once triggered, becomes a market order to sell at the current market price.
Settlement date - The date by which an executed order must be settled by the transference of instruments or currencies and funds between buyer and seller.
Short - Having an open position that was created by selling a currency. If you sold the EUR/USD, the client is said to be "Short" the currency pair (sold the base currency). If a client bought the EUR/USD, he would be long the currency pair, but short USD currency. Foreign exchange transactions assume being long one currency and short another.
Short Covering - Buying to unwind a short position of a particular currency pair.
Sophisticated Foreign Exchange Investor - Investor possessing sufficient knowledge, experience and/or capitalization to trade in Foreign Exchange market. The investor has to decide for him/herself if Forex is a suitable investment vehicle for his or her purposes.
Sovereign risk - (1) Risk of default on a sovereign loan; (2) Risk of appropriation of assets held in a foreign country.
Speculative - Trading Foreign Exchange is speculative in that there is no guarantee that those who invest in Foreign Exchange will make any money. The conditions also exist that the client can lose his entire deposited margin making trading FX highly speculative.
Spot - Spot or Spot date refers to the spot transaction value date that is two business days from the deals Trade Date. In instances where there is holiday, weekend or other day when the banks in the countries represented by the currencies in the currency pair are closed, the spot date will be adjusted forward to the next value date where the banks are open. In the case of US Dollar versus the Canadian dollar, the spot date is 1 business day forward from the Trade Date.
Spot price/rate - The price at which a currency pair is currently trading in the spot market.
Spot Settlement Basis - The standardized settlement procedure for foreign exchange transactions that sets the value date 2 business days forward from the Trade Date (see: Spot).
Spread - The difference between the bid and ask price for a foreign currency price.
Sterling - British pound, otherwise known as cable.
Stop loss order - A specific order entered by the client to close out a position if the price moves in the opposite direction of the position by a certain amount of pips.
Stop Price Level - The client entered price that activates a Stop Loss Order.
SWIFT - Society for World-wide Interbank Telecommunications is Belgian based company that provides the global electronic network for settlement of most foreign exchange transactions. The society is also responsible for the standardization of the currency codes used for confirmation and identification purposes (i.e.. USD = US Dollars, EUR = The Euro, JPY = Japanese Yen)
Swissy - Market slang for Swiss Franc.