Settlement – Settlement is the act of finalizing a transaction, whether it is the completion of a spot trade or the closing of an open transaction.

Short Position – A short position occurs from the sale of borrowed currency after it has fallen in value.

Simple Moving Average (SMA) – The SMA value is obtained by totalling the closing price of a currency over several time periods and then dividing the result by the number of periods.

Spot Market – A spot market is a foreign currency exchange where cash is traded for an immediate transaction.

Spot Pric -– Spot price is another term for the current market price.

Spot Trade – A spot trade is an immediate foreign exchange transaction. Spot trades may be settled in cash or through an electronic contract.

Spread – The Spread is the difference between the bid and ask price of a currency.

Square – When a purchase and sale cancel each other out so no open position remains is a square condition.

Sterling – British pounds sterling are sometimes referred to only as sterling.

Stop-Loss Order – A stop-loss order is a type of order that automatically closes when a specific price is reached. Stop-loss orders are used to minimize risk through unnecessary market exposure.

Support – Support or support level is the level at which a currency does not usually fall below. Many traders purchase currency when it is at the support level.

Swap – A currency swap is a foreign currency exchange transaction. It can be a spot trade or a forward.

Swissy – A slang term for a Swiss franc.