Discount Rate
Interest rate that an eligible depository institution is charged to borrow short-term funds directly from the Federal Reserve Bank.
The industry’s
most important terms explained.
Discover a wealth of financial terms and definitions that every trader should know.
D
Devaluation
The deliberate downward adjustment of a currency’s price, normally by official announcement.
Derivative
A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.
Depreciation
A fall in the value of a currency due to market forces.
Delivery
An FX trade where both sides make and take actual delivery of the currencies traded.
Deficit
A negative balance of trade or payments.
Dealer
An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
Day Trader
Speculators who take positions in commodities which are then liquidated prior to the close of the same trading day.