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Correspondent Banks are generally used in international transactions, as there are many instances where domestic banks are unable to conduct business in certain countries without formally establishing its presence in those regions. Correspondent Bans help to quicken the process of foreign transactions and eliminate some of the legal filings that would otherwise be required.

The Core Retail Sales figure is released once each month (generally during the middle of the next month) and this data gives forex traders an idea of how inflation will be affected and how the country's central bank is likely to react relative to the raising or lowering of interest rates.

The Copey slang term comes from the largest city in Denmark, Copenhagen. The currency is also used in Greenland and is generally quoted against the US Dollar when traded by retail brokers.

Convertible currencies are not subject to government restrictions and these currencies tend to be more liquid than ones that are actively controlled by a country's government or central bank. This type of currency control tends to be seen in developing countries, as the central banks in those regions look to prevent volatility in currency values.

Conversion rates are best shown in example form. If the EUR/USD is trading at 1.35, the conversion rate is 1.35, as it will take 1.35 US Dollars to buy one Euro.It should be remembered, however, that conversion rates are always changing as markets are constantly redefining the value of currency relationships.

Traders who implement a box spread or long box strategy are taking advantage of overpriced assets by instantly liquidating (arbitraging) them to fair market value. The technique involves simultaneously entering a bull call and a bear put spread, using options with parallel strike prices. Traders can earn risk-free profit, as long as the expiration value of the box exceeds the cost to enter the spread.Moneyness Review for Puts and Calls Call Options: In-The-Money (ITM) = Strike price (less than) Market Price Out-of-The Money (OTM) = Strike price (more than) Market Price Put Options: In-The-Money (ITM) = Strike Price (more than) Market Price Out-of-The Money (OTM) = Strike Price (less than) Market Price Both Put and Call Options: At-The-Money (ATM) Strike Price (equals) Market Price How To Set Up A Box Spread Strategy Disney stock is worth $45 (market price) in June. Entering the Bull Call Spread 1) The trader writes (sells) a call option: DISJan50($1) - 100 shares of Disney stock - Strike Price $50 (OTM), expiring in 30 days - Premium Cost of $1 2) The trader buys a call option: DISJan40($6) - 100 shares of Disney stock - Strike Price $40 (ITM), expiring in 30 days - Premium Cost of $6 3) The trader pays a total of $500 to enter the bull call spread [$600 (paid for call purchase) - $100 (received from call sale)] Entering the Bear Put Spread 1) Trader writes (sells) a put option: DISJan40($1.50) - 100 shares of Disney stock - Strike Price $40 (OTM), expiring in 30 days - Premium Cost of $1.50 2) Trader buys a put option: DISJan50($6) - 100 shares of Disney stock - Strike Price $50 (ITM), expiring in 30 days - Premium Cost of $6 3) The trader pays a total of $450 to enter the bull call spread [$600 (paid for call purchase) - $150 (received from call sale)] Total cost to enter the market (Box Spread Strategy): $950 [$500 (cost of bull spread) + $150 (cost of bear spread)] Computing Expiration Value To earn risk-free profit, the expiration value of the box must exceed the cost to enter the box spread. The expiration value is simply the difference between the higher and lower strike prices, multiplied by 100. This example's box spread expiration value is $1000 [$1000= $50 (high) -$40 (low) X 100], which is higher than the $950 cost to enter the market. Result one: Disney stays at $45 (ATM) in July. a) Both the put and call options sold expire worthless (OTM). b) The call option purchased is ITM. The trader exercises his or her right to buy 100 shares at $40, pays $4000 to the seller. c) The put option purchased is ITM. The trader exercises his or her right to sell the 100 shares at $50, receives $5000 from the seller. d) The trader's profit is $50 after subtracting the cost to enter the market from the gain. [$50 = $5000 (received from put sale) - $4000 (paid to call seller) - $950 (cost to enter market)] Result two: Disney rallies to $50 in July. a) Both the put and call options sold expire worthless (OTM). b) The call option purchased is ITM. The trader exercises his or her right to buy 100 shares at $40, pays $4000 to the seller. c) The put option purchased is ITM. The trader exercises his or her right to sell the 100 shares at $50, receives $5000 from the seller d) The trader's profit is $50 after subtracting the cost to enter the market from the gain. [$50 = $5000 (received from put sale) - $4000 (paid to call seller) - $950 (cost to enter market)] e) The trader's profit is $50 after subtracting the cost to enter the market from the gain. [$50 = $5000 (received from put sale) - $4000 (paid to call seller) - $950 (cost to enter market)] Result three: Disney falls (crashes) to $40 in July. a) The put and call options sold expire worthless (OTM), as well as the call option purchased. b) The put option purchased is ITM. c) The trader buys 100 Disney shares in the open market, paying $4000 d) The trader sells the 100 shares to the writer at $50, receiving $5000 from the seller. e) The trader's profit is $50 after subtracting the cost to enter the market from the gain. [$50 = $5000 (received from writer) - $4000 (paid for shares) - $950 (cost to enter market)] Advantages and Disadvantages of Implementing a Box Spread Strategy: Pluses: The upside to this type of strategy is that the investor will always make a small profit in any market situation, risk-free. The trader is just settling the overpriced options to fair market value. Minuses: There is no downside in carrying out a box spread strategy, since it risk-free. However, traders must be able to quickly recognize options with expiration values that exceed the investment's costs.

Constant Currencies are meant to provide companies with a buffer against negative currency fluctuations. For example, if sales in a company's foreign exports rise by 20% while the value of the currency rises by 10% during the same period, the total sales gains are equal to only 10%, not 20%. Constant currencies help protect against this.

Commodity Pairs include forex pairs like the AUD/USD, the USD/CAD, and the USD/NZD. Since the economies of these countries are highly dependent on exports, they are given this categorization.

Commodity Currencies, such as the Australian, New Zealand and Canadian Dollars are heavily associated with the prices of oil and metals, and make forex users use these currencies as a proxy for entering into these commodities markets.

Commodity Block Currencies, such as the Australian, New Zealand and Canadian Dollars are heavily correlated with the prices of oil and metals, and make forex users use these currencies as a proxy for entering into these commodities markets.

Cleared Funds are thought of as being “liquid” in nature and are different from “pending” funds as their source has been verified previously. Cleared Funds can be easily transferred into a new account or into cash form.

The Chinese Yuan (CNY)is a rare item in the forex markets, in that it is not freely traded by market investors. Instead, the value of the currency is determined by the government in a floating exchange rate.

The CHF in the forex markets tends to fall into the “safe haven” category along with the US Dollar and the Japanese Yen. Because of this, the CHF tends to strengthen during times of market instability and weaken during times of growth.

Cash Delivery is a relatively rare occurrence, as trades as posted into record books at varying times.

A trader using a Carry Grid approach will look to buy high yielding currencies against those with lower interest rates. These positions are generally long term in nature, so that interest rate gains are given the chance to accumulate.

Many trading systems are based on candlestick formations that are found on Candlestick Charts. Many of these are reversal patterns that show market indecision, and these trading systems can be identified quickly for short term strategies.

The Canadian Dollar, sometimes abbreviated as the CAD or given the slang term the Loonie, is generally lumped together within the commodity currency category, as the country is relatively rich in its metals and oil exports.

Cambrists generally deal with the workings of the forex market on a regular basis. Some examples include economists or central bankers that are widely recognized as having a high level of understanding in what move forex prices.

The Botswana Pula is the official currency of the Botswana, given value by the nation’s central bank. The Botswana Pula can be broken down into 100 thebe, and is currently pegged to theSouth African Rand. Traders investing in the BWP currency hold an optimistic view of the country’s macro economic fundamentals and the value and allocation of the countries natural resources. Price levels are heavily influenced by inflation rates, and the low liquidity levels of this currency make it unavailable in many regions.

A trader who implements a synthetic short stock (split strikes) is betting that an asset's value will fall. The technique involves buying the same number of call and put options for an underlying asset with the same expiration. Both the profit potential and the risk involved when using this strategy is unlimited. An investor who enters a synthetic short stock (split strikes) strategy can gain large profits if the market crashes but can also incur big losses if it rallies. Moneyness Review for Puts and Calls Call Options: In-The-Money (ITM) = Strike Price (less than) Market Price Out-of-The Money (OTM) = Strike Price (more than) Market Price Put Options: In-The-Money (ITM) = Strike Price (more than) Market Price Out-of-The Money (OTM) = Strike Price (less than) Market Price Both Put and Call Options At-The-Money (ATM) Strike Price = (equals) Market Price How to Implement a Synthetic Short Stock (Split Strikes) Strategy Disney stock is worth $40 (market price) in June. 1) Trader sells a call option: DISJul45($1) - 100 shares of DIS stock - Strike Price $45, out-of-the-money (OTM), expiring in 30 days - Premium Cost of $1.00 2) Trader buys a put option: DISJul35($0.50) - 100 shares of DIS stock - Strike Price $35, out-of-the-money (OTM), expiring in 30 days - Premium Cost of $1.00 3) The trader receives a $50 credit when entering the market. [$100 (received from sale) - $50 (paid for put)] Total cost to enter the market: -$50 Result one: Disney stock falls (moderately) to $35 in July. a) The call sold option expires worthless. (OTM) b) The put option purchased expires worthless. (OTM) c) The trader gains a total of $50 after keeping credit taken when entering the market. Result two: Disney stock rises (rallies) to $60 in July. a) The put option expires worthless. (OTM) b) The call option sold expires ITM. The investor who bought the trader's call option exercises his or her right to buy 100 shares at $45. c) The trader buys 100 Disney shares in the open market, paying $6000. d) He or she then sells them to the buyer, receiving $4500. e) The trader loses a total of $1450 after subtracting the premium credit taken when entering the market. [$1450 = $50 (credit to enter market) - $1500 (loss from call)] Result three: Disney stock falls (crashes) to $20 a) The call option expires worthless. (OTM) b) The put option expires ITM, so the trader buys 100 Disney shares in the open market, paying $2000 to cover the sale. c) The trader exercises his or her right to sell the 100 shares at $35 to the writer and receives $3500 from the seller. d) The trader gains a total of $1550 after adding the premium credit taken when entering the market. [$1550 = $1500 (profit from put) + $50 (credit to enter market)] Advantages and Disadvantages of Implementing a Synthetic Short Stock (Split Strikes): Pluses: The upside to this type of strategy is that the investor will always make a profit in a bear market, which can lead to unlimited profit potential if prices crash. The trader also can enter the market without paying cash. He or she receives a premium credit, keeping it when the index call option expires worthless, and using the credit to offset losses, if the asset's value rises. Minuses: The downside in using a synthetic short stock (split strikes) is that the method exposes the investor to unlimited risk. If the underlying asset's market value rallies, then he or she can lose large amounts of money, since an asset's price can theoretically rise as much as the demand permits.

A trader who implements a synthetic short stock strategy is betting that an asset's value will fall. The technique involves buying the same number of call and put options for an underlying asset. The profit potential and risk involved when using this strategy is unlimited. An investor who enters a synthetic short stock strategy can gain large profits if the market crashes but can also incur big losses if it rallies. Moneyness Review for Puts and Calls Call Options: In-The-Money (ITM) = Strike price (less than) Market Price Out-of-The Money (OTM) = Strike price (more than) Market Price Put Options: In-The-Money (ITM) = Strike Price (more than) Market Price Out-of-The Money (OTM) = Strike Price (less than) Market Price Both Put and Call Options At-The-Money (ATM) Strike Price (equals) Market Price How to Implement a Synthetic Short Stock Strategy Disney stock is worth $40 (market price) in June. 1) Trader sells a call option: DISJul40($1.50) - 100 shares of DIS stock - Strike Price $40 (ATM), expiring in 30 days - Premium Cost of $1.50 2) Trader buys a put option: DISJul40($1.00) - 100 shares of DIS stock - Strike Price $40 (ATM), expiring in 30 days - Premium Cost of $1.00 3) The trader receives a $50 credit when entering the market [$150 (received from sale) - $100 (paid for put)] Result one: Disney stock rises (rallies) to $50 a) The put option expires worthless (OTM). b) The call option sold expires ITM. The investor who bought the trader's call option exercises his or her right to buy 100 shares at $40. c) The trader buys 100 Disney shares in the open market, paying $5000 d) He or she then sells them to the buyer, receiving $4000 e) The trader loses a total of $950 after subtracting the premium credit taken when entering the market. [$950 = $50 (credit to enter market) - $1000 (loss from call) ] Result two: Disney stock falls (crashes) to $30 a) The call option expires worthless (OTM). b) The put option expires ITM, and the trader buys 100 Disney shares in the open market, paying $3000 c) The trader exercises his or her right to sell the 100 shares at $40 to the investor who wrote the put option. d) The trader sells 100 Disney shares and receives $4000 from the writer. e) The Trader gains a total of $1050 after adding the premium credit taken when entering the market. [$1050= $1000 (profit from put) - $50 (credit to enter market)] Advantages and Disadvantages of Implementing a Synthetic Short Stock Strategy: Pluses: The upside to this type of strategy is that the investor will always make a profit in a bear market, which can lead to unlimited profit potential if prices crash. The trader also can enter the market without paying cash. He or she receives a premium credit, keeping it when the index call option expires worthless, and using the credit to offset losses, if the asset's value rises. Minuses: The downside in using a synthetic short stock strategy is that the method exposes the investor to unlimited risk. If the underlying asset's market value rallies, then he or she can lose large amounts of money, since an asset's price can theoretically rise as much as the demand permits.

Traders who implement a synthetic short call strategy are betting that the market price of an option's underlying asset will fall. The technique involves short selling owned assets and selling a put option for the amount of shares owned. The loss-risk in this strategy is unlimited, if the market price of the underlying asset rises. Traders who employ a synthetic short call strategy use assets as leverage to earn a fixed premium credit, received from the put buyer when entering the market. Moneyness Review for Puts Out-of-The Money (OTM) = Strike Price (less than) Market Price In-The-Money (ITM) = Strike Price (more than) Market Price At-The-Money (ATM) = Strike Price (equals) Market Price How to Carry out a Synthetic Short Call Strategy Disney stock is worth $50 (market price) in June. 1) Trader short sells 100 shares of Disney stock 2) Trader sells the put option: DISJul50($3) - 100 shares of Disney stock - Strike Price $50, at-the-money (ATM), expiring in 30 days - Premium Cost of $3 3) Trader receives a $300 credit when entering the market [$300 (received from put buyer)] Total cost to enter the market: -$300 Result one: Disney stock remains at $50 in July a) The put option sold expires worthless (OTM). b) The short sale realizes no gain. c) The trader's profits total $300 after keeping the credit earned when entering the market. Result two: Disney stock falls to $40 in July. a) The short sale realizes a $1000 gain, and the trader receives $1000. b) The put option sold expires ITM. c) The investor who bought the trader's put option exercises his or her right to sell 100 shares at $50. The trader pays $5000 to the buyer, and receives 100 Disney shares. d) The trader immediately sells the 100 shares in the open market and receives $4000. e) The trader makes a total profit of $300 after keeping the credit earned when entering the market. [$300 = $4000 (received for 100 shares) + $1000 (gain from short sale) + $300 (credit to enter market) - $5000 (paid for 100 shares)] Result three: Disney stock rises to $60 in July. a) The short sale realizes a $1000 loss, and the trader pays $1000. b) The put option sold expires worthless (OTM) c) The trader loses $700 after adding the credit earned when entering the market. [-$700 = $300 (credit to enter market) - $1000 (loss from short sale) ] Advantages and Disadvantages in Carrying out a Synthetic Short Call Strategy Pluses: The upside to this type of strategy is that the investor will gain limited profits if the put option expires at-the-money or expires at any price below it, independent of how low the market drops. The synthetic short call strategy also earns the trader a credit when entering the market, which can be used to offset losses if the underlying asset's market price rallies. Minuses: The downside in using a synthetic short call is that the method has an unlimited loss-risk potential. The short sale exposes the trader to high risk when the market rallies, since any asset's market price could theoretically rise as much as demand permits. The method also limits the trader's profit potential to only what he or she received when entering the market. The investor can not profit from the short sale if the market crashes because the put option would offset any gains from the sale.

One of the main responsibilities of the Bundesbank is to oversee the German banking system. Since the country adopted the use of the Euro, the responsibilities of the Bundesbank have changed, and now its members act as a subdivision of the European Central Bank (ECB).

Bullish traders tend to believe that prices in an asset or market will rise over time, and these traders generally look to enter into buy positions as a means for capitalizing on this. Bullish traders tend to view the economy (or, in forex, a currency) as being undervalued and that buy positions will produce gains in the future.

The Bhutanese Ngultrum is the official currency of the Bhutan, given value by the nation’s central bank. The Bhutanese Ngultrum can be broken down into 100 chhertum, and is currently pegged to the Indian Rupee. Traders investing in the BTN currency hold an optimistic view of the country’s macro economic fundamentals and the value and allocation of the countries natural resources. Price levels are heavily influenced by inflation rates, and the low liquidity levels of this currency make it unavailable in many regions.