Accounting currency

Accounting currency is the term that defines the currency used by a firm to record all of their transactions and financial statements. Also known as the reporting currency or presentation…

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…

Balance sheet hedging

Balance sheet hedging is a corporate treasury method used by businesses operating with foreign currencies to reduce the poterntial impact of exchange rate fluctuations in their balance sheet….

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 the interest rate set by the central bank that issued the base currency, also known as the transaction currency. In FX markets, currencies…

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 spread

In foreign exchange, the “bid/ask spread” or “buy /offer spread” – more commonly known simply as the “spread” – is the difference in price by which the “bid” price exceeds the…

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…

Blocked currency

A blocked currency, also known as a “non-convertible currency” or “restricted currency”, is a currency that is subject to governmental restrictions and is not traded in the foreign exchange market,…