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ABC of Trading

FULL TRADING GLOSSARY & INDEXES

F

  • F Statistics - The ratio of the variance explained by treatments to the unexpected variance.

  • Factoring - the financial service consisting of the granting of a cash advance against accounts receivable from foreign customers.

  • Fade - Selling a rising price or buying a falling price.

  • Failure Swings - The inability of price to reaffirm a new high in an uptrend or a new low in a downtrend.

  • Fair Values - The theoretical prices generated by an option pricing model.

  • Fast Market - The theoretical prices generated by an option pricing model.

  • Feedforward Computation - Neural network in which neurons receive information only from the previous layer and send outputs only to the following layer.

  • Fill Order - An order that must be filled immediately (or canceled).

  • Filter - A device or program that separates data, signal or information in accordance with specified criteria.

  • Filter Point - The time at which a portfolio insurance program makes an adjusting trade.

  • Fixed Term Contract - A Forward Exchange contract due on a specific date.

  • Flash Fill - Order filled immediately by hand signal on the trading floor.

  • Float - The number of shares currently available for trading.

  • Floor Traders - Employees of brokerage firms working on exchange trading floors.

  • Forecast Origin - The most recent historical period for which data is used to build a forecasting model.

  • Foreign Sales Agent - An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.

  • Foreign Trade Zone (FTZ) - Special commercial and industrial areas in or near ports of entry where foreign and domestic merchandise may be brought in without being subject to payment of customs duties.

  • Forfaiting - The purchase by the forfaiter of an exporter’s accounts receivable which are based on negotiable instruments such as bills of exchange and promissory notes.

  • Forward Contract-Fixed Term - These contracts specify a ‘fixed’ future date at which it is anticipated delivery of the foreign currency will be effected.

  • Forward Contract-Optional Term - they are faced with the possibility of an adjustment of the contract rate against them if they take out a fixed term contract and must deliver some considerable time before expiry date.

  • Forward Deal - An agreement to buy or sell foreign currency against either New Zealand Dollars or another foreign currency for value on a date more than two business days from date of deal.

  • Forward Discount - term applied to a foreign currency which is less expensive to trade forward than for spot settlement.

  • Forward Exchange Contract (FEC) - An arrangement entered into between customer/bank wherein customer agrees to buy/sell foreign currency from/to bank for delivery by an agreed future date.

  • Forward Margin - The premium or discount on forward rates against spot rates.

  • Forward Premium - The term applied to a foreign currency which is more expensive to trade forward than for spot settlement.

  • Forward Rate - The price of a foreign currency which is bought or sold for delivery and payment at a fixed future time, usually 30, 60 or 90 days.

  • Forward-Rate Agreement (FRA) - Cash payments are made daily as the spot rate varies above or below an agreed -upon forward rate and can be hedged with Eurodollar futures.

  • Fractal Dimension - From fractal geometry, used to describe the irregular nature of lines, curves, planes or volumes.

  • Fractals - From fractal geometry, used to describe the irregular nature of lines, curves, planes or volumes.

  • Framing or Frame Dependence - The tendency to evaluate current decisions within the framework in which they have been presented.

  • Frequency Component - That part of a time series that may be represented as a cycle.

  • Frequency Distribution - A chart showing the number of times (or "frequency") an event occurs for each possible value of the event.

  • Frequency Domain - Variation in a time series is accounted for by cyclical components at different frequencies.

  • Frequency Response - The transfer of the frequency of the underlying data, usually prices, to the frequency of its moving average.

  • Front Month - The first expiration month in a series of months.

  • Front Loaded - Commission and fees taken out of investment capital before the money is put to work.

  • Front Running - The practice of trading ahead of large orders to take advantage of favorable price movement.

  • Fundamentals - The theory that holds that stock market activity may be predicted by looking at the relative data and statistics of a stock as well as the management of the company in question and its earnings.​

  • Funding - The placing of funds in overseas accounts in order to meet the bank’s daily requirements.

  • Future Volatility - A prediction of what volatility may be like in the future.

  • Fuzzy Systems - A problem-solving method that can be applied to neural networks, expert systems and other comput ing methods.

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Miguel Francisco Panganiban

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Risk Warning:
Trading in leverage products carries a high level of risk and may not be suitable for all investors. Past performance of an investment is no guide to its performance in the future. Investments, or income from them, can go down as well as up. You may not necessarily get back the amount you invested. All opinions, news, analysis, prices or other information contained in our communication and on our website, are provided as general market commentary and do not constitute investment advice, nor a solicitation or recommendation to buy or sell any financial instruments or other financial products or services.

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