Futures and Forex Glossary Dictionary P1


The upfront face value of an asset or security.

Par Spread

When the bid and ask price for a forward spread rate are the same.


Nickname for the US Dollar – French Franc currency pair, before France adopted the Euro

Partial Lot

Trading only part of a lot such as 1/10 or 7/10 of the standard lot size of 100,000 units of a currency.


Fixing a country's currency against another currency or 'pegging' it, so that the exchange rate remains the same always.

Perfect Competition

A hypothetical market situation where the following criteria is met:

1. All firms sell an identical product.
2. All firms are price takers.
3. All firms have a relatively small market share.
4. Buyers know the nature of the product being sold and the prices
charged by each firm.
5. The industry is characterized by freedom of entry and exit.


A reference to the fact that oil is traded in Dollars exclusively which essentially means that the USD is backed by oil.


The smallest possible price movement of a currency pair. Most currency pairs are quoted to four decimals, making one pip equal to 0,001 or 1 basis point.


The part of the exchange trading floor where futures and options contracts are traded.

Pivot Points

Pivot points in forex are used as indicators of support and resistance levels and are calculated as an average of previous low, high and close numbers.