Futures and Forex Glossary Dictionary D1

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Daily Cutoff

Time stipulated by a forex dealer marking the end of a particular trading day and the beginning of a new trading day in order to facilitate the recording of date of trades and to resolve settlement periods.

Day order

A foreign currency trading position, whether “buy’ or “sell” that remains live during the day but automatically closes by the end of trading

Day Trade

Foreign currency trading position that is both opened and closed on any one particular trading day. Related Term: Day Trader

Day Trader

One who opens and closes a currency position within the same trading day thereby aiming to profit from intra day price movements.

Day Trading

A currency trading style indicative of a currency trader who squares all positions at the end of trading day.

Deal Blotter

Chronological list of currency deals conducted during the course of a particular trading day.

Deal Date

Currency transaction data as entered in the books of the relevant forex broker.

Deal Ticket

Transactional details of any foreign currency deal with a forex broker as different from customer statements issued to traders.

Dealer

An individual or entity who acts as Principal market makers in foreign currency business, buying currencies at its Bid price (using their own money) and sell currencies from their own account at the Ask price usually trading for their own account and risk. Antithesis of a broker

Dealing desk

Foreign currency traders of international banks who facilitate pricing and executing of trades, and also trade foreign currency in both spot and forward markets. Dealing desk trade executions are crucial for day traders. Also called “Trading Des

Dealing System

Electronic trading system comprising numerous computers that interlink banks and form the backbone of forex markets and which facilitate the exchange of money market instruments. Examples: Trading platforms operated by Central banks, Reuter’s terminals and Bloomberg machines. Related Term: Central Bank, Money Marke

Decentralized Market

A currency market structure with access to bids/ask prices transmitted instantaneously to various players within a marketplace using high-end technology thereby obviating the need for a centralized location. Related Term: Ask, Bid

Default

Failure to effect timely payment of interest or principal on currencies, bonds, or other investment securities.

Deferred Delivery Month

Particular month in which a futures contract expires alongside simultaneous delivery of the asset or cash associated with that contract. Related Term: Actual, Cash Settlement

Deficit

The quantum of loss made over profit, expense over revenue, or liabilities over assets. Related Term: Current Account Deficit

Deflation

Economic downturn characterized by decline in the prices of goods and services within a country. Antithesis of inflation