Daily Trading Limit: The highest and lowest prices that a commodity or option is permitted to reach in a given trading session. Once reached, no trading occurs on that commodity or option until the following session. also called fluctuation limit or price limit. Day Order: A buy or sell order that will expire automatically at the end of the trading day on which it is entered. Day Trader: A trader who buys and sells on the basis of small short-term price movements. Day Trading: A Day-Trading deal is a currency exchange deal which renew automatically every night at 22:00 (GMT time) starting the day the deal was made and until it ends. The deal ends in one of the following events: 1. Termination initiated by you. 2. The day trading rate has reached the Stop-Loss rate (or Take-Profit rate) you predefined. 3. The deal end date. As long as the deal is open, it is charged a renewal fee every night at 22:00 (GMT time). DCLG: Department for Communities and Local Government (UK Government department, successor to ODPM) Deal Date: The date on which a transaction is agreed upon. Deal Ticket: The primary method of recording the basic information relating to a transaction. Deal Ticket/Deal Slip: The primary method of recording the basic information relating to a transaction. Dealer: An individual or entity, such as a securities firm, when it acts as a principal and stands ready to buy and sell for its own account. More generally, an individual or entity which buys and sells products and holds an inventory. Debt: An amount borrowed or owed between two parties. Debt comes with the implied (or explicitly stated) promise to repay, a repayment schedule and interest arrangements on outstanding debt. Debt may be reflected in the form of a contract, bond, mortgage or other form stating terms of repayment, maturity date and interest arrangements An amount owed to a person or organization for funds borrowed. Debt can be represented by a loan note, bond, mortgage or other form stating repayment terms and, if applicable, interest requirements. These different forms all imply intent to pay back an amount owed by a specific date, which is set forth in the repayment terms. Declaration Date: The latest day or time by which the buyer of an option must intimate to the seller his willingness or unwillingness to exercise the option. Default: Failure by the bond issuer to pay the interest or principal, when due. Deficit: A negative balance of trade or payments. Deflator: A statistical tool that converts current dollars into inflation-adjusted dollars, in order to compare prices over time after factoring out the overall effects of inflation. Delivery: An FX trade where both sides make and take actual delivery of the currencies traded. Delivery Date: The date of maturity of the contract, when the final settlement of transaction is made by exchanging the currencies. This date is more commonly known as the value date. Delivery Month: The calendar month in which a futures contract comes to maturity and becomes deliverable. Delivery Points: A location or facility designated by a futures exchange for tendering and accepting goods deliverable according to the terms of a futures contract. Delivery Risk: A term to describe when a counterparty will not be able to complete his side of the deal. This risk is very high in case of over the counter transactions where there is no exchange which can stand as a guarantee to the trade between the two parties to the contract. Delta: 1.The change in price of a call option for every one-point move in the price of the underlying security. also called hedge ratio. 2.The ratio of the change in price of an option to the change in price of the underlying asset. Also called the hedge ratio. Applies to derivative products. For a call option on a stock, a delta of 0.50 means that for every $1.00 that the stock goes up, the option price rises by $0.50. As options near expiration, in-the-money call option contracts approach a delta of 1.0, while in-the-money put options approach a delta of -1. See: hedge ratio, neutral hedge. Call deltas range from 0.00 to +1.00; put deltas range from 0.00 to -1.00. If the call delta is 0.69, the put delta is -0.31 (call delta minus 1 equals put delta; 0.69 -1 =-0.31). Department for Communities and Local Government: Department for Communities and Local Government (UK Government department, successor to ODPM) Depo: Deposit Depository Institution: A depository institution is a financial institution in United States, such as a savings bank, that is legally allowed to accept monetary deposits from consumers. Federal depository institutions are regulated by the Federal Deposit Insurance Corporation (FDIC). An example of a non-depository institution might be a mortgage bank. While licensed to lend, they cannot accept deposits. Depreciation: A fall in the value of a currency due to market forces. 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. Derivatives: A broad term relating to risk management instruments such as futures, options, swaps, etc.. The contract value moves in relation to the underlying instrument or currency. Desk: Term referring to a group dealing with a specific currency or currencies. Details: All the information required to finalize a foreign exchange transaction, i.e. name, rate, dates, and point of delivery. Devaluation: The act by a government to reduce the external value of its currency. DEWR: Department of Employment and Workplace Relations (Australia) DEWR Skilled Vacancies - Australia: Measures the monthly change in skilled job vacancies across Australia . Expressed as an index, the Skilled Vacancies Index is a leading indicator for the Australian Labor market. A high number of vacancies indicate a job market where labor is in demand and employers are pressured to increase wages. Rising wages put upward pressure on inflation than can lead to interest rate changes. On the other hand fewer skilled vacancies imply a tighter job market where skilled workers face greater difficulty finding employment, possibly weighing wages down. DIBOR: Dublin Inter-bank Offered Rate. Direct Quote: Representation of cost of unit of a foreign currency in terms of national currency. Dirty Float: An exchange rate system in which the currency is not pegged, but is "managed" by the central bank to prevent extreme fluctuations in the exchange rate. The exchange rate is managed through changes in the interest rate to attract/detract capital flows or through the buying and selling of the currency. This system is contrasted with a Pure Float in which there is no central bank intervention and the exchange rate is entirely determined by the market and speculation. Also known as "Managed Float." Discount: Less than the spot price example: forward discount. Discount House: An institution that purchases promisory notes and resells them or holds them until maturity. Discount Rate: The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank. The discount rate is one of the two interest rates set by the Fed, the other being the Federal funds rate. The Fed actually controls this rate directly, but this fact does not really help in policy implementation, since banks can also find such funds elsewhere. also called Federal Reserve Discount Rate. Discretionary Account: An account in which the customer permits a trading institution to act on the customer's behalf in buying and selling currency pairs. The institution has discretion as to the choice of currency pairs, prices, and timing-subject to any limitations specified in the agreement. Distributive Trade: Distribution of material goods to consumers, through retailing and wholesaling Dividend: That part of the earnings of a corporation that is distributed to its shareholders; usually paid quarterly Domestic CGPI -Domestic Corporate Goods Price Index- Japan: The Domestic Corporate Goods Price Index measures prices for goods purchased by Japanese corporations. As prices for input materials and the overall cost of manufacturing change, companies adjust retail prices accordingly. The CGPI comprehensively tracks these supply-side price pressures and increases in the index often precede upward movement in the CPI. If an increase in the CGPI is followed by a rise in the CPI, concerns about inflation may prompt the Bank of Japan to raise interest rates. The headline numbers are the percentage change in the index month or month and annually. Note : The index's base year is the year 2000 and the base value is 100. Thus, an index value of 105 signifies a 5% increase in prices since the year 2000. The data report also contains individual indexes for each commodity category used in the Wholesale Price Index. Domestic corporate Goods Price Index_Domestic CGPI - Japan: The Domestic Corporate Goods Price Index measures prices for goods purchased by Japanese corporations. As prices for input materials and the overall cost of manufacturing change, companies adjust retail prices accordingly. The CGPI comprehensively tracks these supply-side price pressures and increases in the index often precede upward movement in the CPI. If an increase in the CGPI is followed by a rise in the CPI, concerns about inflation may prompt the Bank of Japan to raise interest rates. The headline numbers are the percentage change in the index month or month and annually. Domestic Demand: Measure of the amount of goods and services sought by German consumers. This sort of consumption is the largest component of GDP and key to German economic growth. Given that Germany is the largest country in the Euro-zone; its economic activity will be reflected in Euro-zone figures and watched by the European Central Bank. Though Germany is traditionally an export driven economy, the strength of domestic demand can determine whether economic slowdown or growth is in the future. Double: An option either to buy or sell an instrument or currency at a specified price. The exercise of the right to sell causes the right to buy to expire and vice versa. Durable Goods Order: An economic indicator which measures the changes in sales of products with a life span in excess of three years. Dwelling Starts - Australia: The number of construction starts on new homes in the past month. The figure, officially called Construction of Dwellings, measures growth in the construction sector and reflects the overall health of the housing market. Increased spending on expensive items like new homes reflects consumer optimism towards the economy. The headline number is the percentage change in Dwelling Starts from the previous month's figure.