Accounts payable

Accounts payable or “payables” is the term used in the corporate treasury to refer to the company’s debts that need to be paid to a supplier within a determinate period. Accounts…

Accounts payable automation

Accounts payable automation refers to the process of implementing software technology to manage payments with a minimal degree of manual interaction. Multinational businesses that rely on a global supply chain or…

Accumulator Forward

An Accumulator Forward, also known as a Share Forward Accumulator or simply Accumulator is a financial derivative that obliges the issuer to sell and the investor to buy a specific…

Additional Fintech Subsectors

Fintech is the term used to describe a vast array of financial service companies. Numerous sectors are covered by this term, which goes beyond the main fintech categories. These include…

Asian Option

Asian options, also known as “Average value options” are a type of option contract whose payoff conditions are determined by the average price of the underlying asset during a predefined…

Average Rate Options

An Average Rate Option (ARO) is a FX derivative in which buyer and seller commit to exchange FX options at a predefined strike price under a schedule covering the duration…

Base currency

In a currency pair quote, the base currency, also known as the primary currency, is the first currency shown. The second currency shown is referred to as the quote currency. Currencies…

Base Currency Interest Rates

The Base Currency Interest Rate in a currency pair is that set by the central bank that issued the quote or secondary currency. In FX markets, currencies are quoted in relation to other…

Basis points (bp)

One basis point is equal to 1/100 of one percentage point or 0.01. This means that a rise of 1% is expressed as an increase of 100 basis points. In finance,…

Batch payments processing

Batch payments processing refers to the procedure by which an array of a company’s or an individual’s payables are bundled and processed in a group payment, reducing the time required…

Bid/Ask price

In foreign exchange, as in all financial markets, the bid price is the price that a buyer is willing to pay to acquire a particular asset, while the ask price…

Bitcoin

Bitcoin is a consensus network that enabled a new payment system and a digital currency, which was created in 2009. It is the first decentralized peer-to-peer payment network powered by…

Break Forward

A Break Forward, also known as a Cancellable Forward, Capped Forward or Cancellable Option is a derivative product half way between a forward contract and an option. Break forwards give…

Budget Reference Rates

The Budget Reference or Budget Rate is the exchange rate that a company’s financial management uses to draft budgets and establish business objectives.   Businesses with offices in several countries, operating in…

Business foreign exchange

Business foreign exchange is the trading of currencies for purposes of real trade and not for speculation. This activity represents approximately 2% of the global $5.3 trillion daily FX market. The…