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.