FX Glossary(M)


Main Currencies

In foreign exchange markets around the world, many market participants, says that of the currency that are frequently traded. Currently, it refers to the US dollar, Japanese yen, euro, pound, and to the Swiss franc, it is also known as major currency.

Margin Call

In general, in the foreign exchange deposit (margin) trading, when the loss evaluation of collateral margin of expanded deposit is reduced, notification of order to request an additional injection of deposit, or what is called to enforce the additional injection margin deposit.

Market Follower/Contrarian

Market follower is one that traded along the direction of the market. Contrarian refers to those trading against the direction of the market. For example, the dollar / yen exchange rate, in case there is a tendency of the dollar appreciation, in the market follower to buy the dollar on the basis of the prediction that "the dollar may continue to appreciate ahead”, on the other hand, to sell on the basis of the prediction “the dollar appreciation may soon roll over” is the Contrarian.

Market Interest Rate

It refers to the interest rate fellow financial institutions being applied when lending and borrowing money.

Market Open

When the market began, I will say that the price was first attached. [← → Closing Quotations] [= Opening Price]

Market Order

The order method to buy in the rate that is currently being presented. It is also called price order. In case of equity investments, when you issue a market order, although we don’t know whether how much the contract would be, in the case of the Forex (foreign exchange margin trading), when market order was issued, the rate at that time is presented , a method wherein the actual order will be issued if that rate is acceptable is taken.

Mark To Market

The assets you have to calculate the actual market price, also refers to re-evaluation at market value.

Major Currency

The currency that are frequently traded in the foreign exchange market, and specifically refers to the US dollar, Japanese yen, euro, pound, Swiss franc.

Middle Rate

It is the market price that becomes the standard rate of the Bank counter. In the Bank’s counter at around 10:00 am, customer posted rate will be decided with the Interbank market level as a reference,  then as long as there is no significant changes in the exchange rate fluctuations, this “middle rate” will be applied for that whole day as a standard exchange rate.


The term used in the interbank market, for example in the case of dollar/yen transactions, it signifies have “bought” the dollar. You may also use the "taken." Conversely, in case of “sold”, it is called "Yours." [← → Given, Yours]

Minor Currency

The currencies other than the major currency.

Monetary Policy

You can adjust the policy rate by raising it (interest rate hikes), lower or (rate cut), by aiming for stable growth of the economy. Monetary policy has the authority to do it to each country’s central banks.