BACS

BACS stands for Bankers’ Automated Clearing Services and refers to the network of banks and building societies that use the BACS payment system. This is a system that essentially makes payments directly from one bank account to another and are used mainly for direct debits and direct credits from organisations.  

 

Cash Transfer

A cash transfer is a direct transfer or movement of money from one person to another.

When related to moving cash from one location (country) to another, this is often referred to as currency transfer, or foreign exchange.

 

CHAPS

Clearing House Automated Payment System is a type of high-value, bank-to-bank payment system and is a faster way of making payments. These payments are usually cleared on the same working day.

 

Currency Transfer

This is the process of moving money of a different currency from one location (country) to another.

 

Dollar rate

The dollar rate is basically the rate at which a country’s currency converts to the US dollar – so how much of your country’s currency units are equivalent to 1 US dollar.

 

Exchange rate

The amount of one currency needed to buy another.

 

Exchange rate risk

An exchange rate risk is a risk that a company’s operations and profitability might be affected by if there are any changes in the exchange rate between different currencies.

 

Exposure

The amount of money at risk due to foreign exchange movements. Essentially another word for financial risk.

 

Faster Payments

A UK system for faster payment of amounts up to £10,000 (lower for some banks). Funds are usually credited within minutes.

 

Foreign Exchange Market

Also know as forex, FX or the currencies market, the foreign exchange market is an over-the-counter global marketplace that determines and sets the exchange rate for countries around the world, and facilitates the trading of currencies.

 

Forward contract

A non-standardised contract to exchange a specific amount of one currency for another on a future date, at a predetermined rate. A deposit is normally required for forward contracts.

 

Forward points

The difference between the spot rate and the forward rate. The forward points are a calculation of the interest rate differential between the buy and sell currency.

 

Forward rate

The rate at which two currencies can be exchanged on a pre-set future date.

 

FX (Foreign Exchange)

FX is the abbreviated version frequently used for foreign exchange. FX is the global trading market for the movement of currencies.

 

GTC - Good 'Til Cancelled

A GTC foreign exchange order will be left in the market at a set rate until completed or cancelled by you.

 

Hedge

A hedge is an investment position that aims to limit risks in financial assets and protect against future currency movements. The financial products used to provide this protection are often called Currency Options.

 

Margin

A margin is a term that refers to the amount of equity an investor has in their brokerage account. It can also be used to describe the profit we make from the transference of funds.

 

Mid-market rate

The mid-market rate is the middle point between the buy and sell prices of two currencies.

 

Money Transfer

A money transfer is the transfer of funds from a credit card directly to a bank account to use for purchases and transactions. Some of the most common types of money transfers include electronic funds transfers, wire transfers, Giro and money orders.

 

OCO - One Cancels Other

A one-cancels-the-other order is a pair of conditional orders that states that if one order is completed, then the other one is automatically cancelled.

 

Overbought

Overbought is the term used for a situation where price movement has risen 150% faster or stronger than normal, rising too far in response to net buying.

 

Oversold

The term oversold refers to a situation where price movement has fallen 150% faster or stronger than normal, declining too far in response to net selling. This is the opposite of overbought.

 

Order

You can leave an order with us to transact on your behalf if a particular exchange rate is reached.

 

Spot rate

The foreign exchange rate at which two currencies can be exchanged in two days' time.

 

Spot Transaction

The exchange of one currency for another at a specified rate for settlement in two working days.

 

Stop Loss Order

A stop loss order is aimed at limiting an investors loss from any investment – if that investment happens to fall in value.

 

Spread

A spread refers to the difference between two prices, rates, or yields.

 

Take Profit Order

A take profit order is a type of limit order that involves setting a currency level, and specifies the exact price at which to close out an open position for a profit.

 

Settlement Date

The date the transference of your funds will take place.

 

Currency Converter

An online currency transfer tool that allows you to see how much your money is worth in a different currency at the current exchange rate.

 

Trading Model

A sophisticated software program that provides expert buy/sell recommendations for trading currencies on the foreign exchange markets. A Trading Model is essentially a rule-based structure that was created to govern trading activities.

 

Trading Recommendations

A Trading Recommendation is the latest position of a Trading Model for a given market and one or more currency pairs.

 

Vendor or supplier

A financial organisation which collects, packages, and distributes up-to-the-minute price quotes from banks and other financial institutions.

 

Volatility

Volatility is the rate at which the price of a stock fluctuates and how it decreases or increases over any specific period.

 

Find out more about Asda Travel Money here and how you can purchase it before going on your travels.