ABA   Central Bank  
  A digital code used by the American Bankers Association to define a bank.   A Government institution in control of the nation's monetary policy and the printing of that nation's currency.  
  Ask (or Offer)   Consumer Price Index (CPI)  
  A sell order places at or above the market price.   A measure of the average amount (price) paid for a market basket of goods and services by a typical U.S. consumer in comparison to the average paid for the same basket in an earlier base year.  
 
  Barrier options   Corporates  
  A type of “exotic” option that comes into existence or ceases to exist once a certain price is reached. They are often added to a “vanilla” or typical option to make the premium less expensive. For example, a 1.4000 EUR/USD call purchased when spot is at 1.3500 would be cheaper if there were a “knockout” embedded in the option, for example at 1.3300. If 1.3300 trades before the expiration of the options, the whole structure would be “knocked out” and the seller of the option would be able to pocket the entire premium.   The treasury departments of large multinational corporations. They are responsible for hedging the Forex exposures of their firms, which can have dramatic impacts on earnings for firms with large overseas sales. For example, a company like Airbus has massive revenues in dollars but has most of its cost base in Euros. They must hedge their currency exposures to try and offset this mis-match.  
  Base Currency   Cross Rates  
  The currency which other currencies are quoted against.   The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate between two currencies other than the U.S. dollar, the currency in which most exchanges are usually quoted.  
  Basis Point   Currency  
  One hundredth of one percentage point. A change from 5.25% to 5.75% is said to be a 50 basis point move. See 'Point' for currency moves.   Means money denominated in the lawful currency of a country.  
  Bid   Current Account  
  The price that a buyer is willing to pay to purchase a given currency and sell another at a particular time.   A category in the balance of payments account that includes all transactions that either contribute to national income or involve the spending of national income.  
  Cable      
  Nickname for the GBP/USD currency pair..