FX Glossary(F)



A condition that becomes a benefit when the position on hold is evaluated at the current rate. Conversely, the condition that becomes loss is called “Against”. [← → Against]

FED Watcher

It refers to the experts that focus in the analysis of the US FRB financial policy and also included the expert observation of the every move of the personnel. It is being entrusted to the news organizations financial institutions, such as research companies, and from their report, the detailed information such as the process and timing of the FRB of decision-making is being explained.

Fed Fund Rate

In a typical short-term interest rates in the United States, it has become an induction target rate of monetary policy. Fed fund does not attach interest in the reserve deposit accounts in their custody. The banks where there is a surplus in reserve, operates by lending funds to other banks. The interest rate at the time of lending the fed funds to commercial banks is called Federal fund rate. Furthermore, the market where the unsecured short-term funds can be traded on the same day between banks is called Fed fund market (federal funds market). FF rate is the call rate of Japan. FF market is equivalent to the call market of Japan.

Federal Open Market Committee(FOMC)

In the United States, they have been holding a meeting in eight times every year (approximately every 6 weeks) to determine the interest rate policy, this is the FOMC (Federal Open Market Committee). FOMC was organized by seven board of directors, the United States 12 district and five Federal Reserve Bank representatives. By the way, the US monetary policy is determined by the majority of the FOMC Board of Directors.

5th /10th day factors

For example, when the oil company has imported oil, for that client, you will have to pay the dollar to the settlement date, which was negotiated at the time of contract. In general, the settlement date is often the day when the 5th /10th comes. That is why, you may run out of dollars for the settlement during the 5th/10th. In that case, it is said to be like “there is high demand of dollar buying at the 5th /10th factors”.

Fixed Exchange Rate System

It refers to the system of fixing the exchange rate within a certain range. In general, the economy might become unstable due to fluctuations in the exchange rate in the countries with weak economic foundation they are taking a fixed exchange rate system. The common is it is often being linked to the currency of the country that has strong ties in trade (peg system), without being affected by the fluctuation of the exchange rate they are able to carry out the trade. In addition, rather than a specific country, these are cases where they take being linked to the average value of multiple currencies "basket system".

Floating Exchange Rate Regime

The system that changes the exchange rate according to the supply and demand, and leaving the decision of the foreign exchange rate to the trade market.


Federal Open Market Committee. US open market operations based on the monetary policy of the Federal Reserve System that determines the policy for the (adjustment of the money supply, interest rates and foreign exchange level of induction, etc.) For example, if the interest rate operation greatly exceeds the range of the prior forecast, there is a great impact on the currency.

Forced Liquidation, Spilling-out

It refers to the case of selling the position of buying retention by loss-cutting. If you want to loss cut the position of selling retention, it is called “step”, “stepped on”.

Foreign Currency Liquidity

In total amount of foreign currency and securities the country held, it shows the external payments capacity, such as the repayment of debt denominated in foreign currencies. The amount that private companies and individuals hold is not included.

Foreign Currency Denomination

This means performing the settlement through the foreign currency.

Foreign Currency Denomination MMF

It is the public corporation bond investment trusts that are being operated in foreign currencies. It is a financial instrument that is being operated at the rated higher public corporation bonds and short-term financial instruments rated. In addition, there are five types, aside from the US dollar as the main currency, the euro, Australian dollar, British pound, and New Zealand Dollar. Purchase of dollar-denominated can be done from $ 10. The other major security companies in Japan are dealing with the part of the city banks. Although the 20 % withholding tax equal to the portion corresponding to the interest rates, even if foreign exchange gains came out, it will not be taxed. Foreign exchange gains in the foreign currency deposits are taxed by miscellaneous income

Foreign Exchange

The currency of foreign countries, or the exchange of foreign currency of different countries. The "exchange rate" is the ratio of time to replace the currency of two of the country (rate).

Foreign Exchange and Foreign Trade Control Law (Foreign Exchange and Foreign Trade Control Law)

Popular name of the "Foreign Exchange and Foreign Trade Law". The basic law with regards to foreign trade that came into effect in 1949. Amended in 1979 (enforcement in 1980). Amended in 1997 (enforcement in 1998). In the new Foreign Exchange and Foreign Trade Control Law, which was enforced, the in and out capital transactions became free, every company is now able to handle the foreign exchange business.

Foreign Exchange Dealer

The Foreign exchange dealer is also called forex dealers, FX dealers. This is the dealer that performs the foreign exchange transactions that belong to the market department of a financial institution (bank), it plays an important part in the foreign exchange market, also the customers market, in the interbank market. In fact, in order to always be at the forefront of the foreign exchange market, particularly when the fluctuation in the foreign exchange rate becomes important to the supply and demand situation, tilt of position, to be able to directly obtain the information of large transactions, standing in the most advantageous surface of among the trading participants. Foreign bonds.

Foreign Exchange Fee

When performing the foreign currency deposits at the bank, this will take a foreign currency fee, but usually it is already included in the exchange rate commission in the exchange rate. For example, if you are going to deposit the foreign currency in US dollars, ¥ 1 at the time of deposit, 1 yen at the time of refund, a total of \2 will be borne for the exchange fee.

Foreign Exchange Fluctuation Risk

It refers to the risk when loss occurred by the fluctuation of the Foreign exchange rate.

Foreign Exchange Funds Special Account

The special account of the country that manages the buying and selling, etc. of the foreign exchange. Through foreign exchange special account, the funds of yen selling intervention, one of the type of the short-term government securities, by the issuance of the foreign exchange security funds bill (redemption period 3 months) will be raised.

Foreign Exchange Gains

The profit incurred by fluctuations in exchange rates. The loss caused by the fluctuation of the foreign exchange market, also called foreign exchange losses.

Foreign Exchange Market

Since currency trading is basically a relative deal, if transaction are being carried out between the customer and our company, we can also say this to be a form of "foreign exchange market". Depending on the type of market participants, in particular, the center of the financial institution of the market, including the banks, is called Interbank Market.

Foreign Exchange Swap

A kind of foreign exchange trading where the Japanese banks borrowed dollars from foreign banks to put yen as collateral, it becomes a mechanism, such as return the dollar after a certain period of time. This is mainly used by the traders.

Foreign Investment Trusts

On the basis of foreign law, it refers to the investment trust of foreign currency denomination of the consignment company by the settings and operation abroad. Although many of the foreign investment trust has claiming the merit that it is possible to realize a high investment yield compared with domestic investment trusts, if there is a possibility of big profit, naturally, the risk also increases. In addition, after the investment, although there is a merit of foreign exchange gains as long as the yen trend is weak yen, there is also risk of foreign exchange losses when the yen trend becomes strong.

Foreign Investors

By the Foreign Exchange and Foreign Trade Control Law Paragraph 1 of Article 26

1. Is a non-resident individual
2. Those corporation having its principal office in the corporation or other organizations or foreign, which was established on the basis of foreign laws and regulations.
3. A company of this country, those recognized to have substantial control listed in 1. or 2.
4. Is a non-resident individual, in the case of a corporation, which accounts for one of the majority of the officer having the officer or representative rights.

In these cases, it is determined to be a Foreign investor.

Foreign Currency Reserves

The payment of the debt and import payment settlement of the country, the foreign currency reserved in order to devote to the foreign payment. If the Ministry of Finance and the Bank of Japan makes the yen buying intervention in the foreign exchange market, by selling the dollar of this foreign currency reserves, and then purchase the yen. Furthermore, contrary to this, in the case of performing the yen selling intervention, the dollar obtained by selling yen, and incorporated into the reserve.


It means the foreign exchange. Although officially it’s 「Foreign Exchange」、regularly 「Forex」is also being used.

Four Values

The general term of the opening price, closing price, high price and low price.


The “Forward trading” during the foreign exchange transactions. To perform a transaction at this moment and agree to a price at a certain occasion of the future.

Federal Reserve Bank(FRB)

The US Federal Reserve Board. Although Federal Reserve Bank is also FRB (Federal Reserve Bank), but the Federal Reserve Board, make the monetary policy, such as the official discount rate, reserve ratio, open market operations. FRB as well as the Japan Bank of Japan, at the institution that corresponds to the central bank of the United States, the current chairman is Ben Bernanke.


The underlying conditions that make up the economy. Mainly includes economic conditions, price trends and monetary policies.

Fund Manager

The person in charge to operate the funds collected from various people (funds). Although investment trusts is exemplary thing of fund, but there is also a place with the lowest deposit amount in the unit of several hundreds of million yen among the hedge fund.


Futures trading is called the (the market decides the last session date, the net settlement transactions by the opposition trade until the last session date)