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 corporate treasury to refer to a company’s debts that need to be paid to a supplier within a given period. More…

Accumulator Forward

An accumulator forward, also known as a share forward accumulator or simply an accumulator, is a financial derivative that obliges the issuer to sell and the investor to buy a…

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…

Authorised payment institution

The UK Financial Conduct Authority (FCA) defines an authorised payment institution as a person authorised as a payment institution under the Payment Services Regulations and included in the Financial Services…

Average Rate Options

An average rate option (ARO) is an FX derivative by which the buyer and seller commit to exchange FX options at a predefined strike price under a schedule covering the…

Balance sheet hedging

Balance sheet hedging is a corporate treasury method used by businesses operating with foreign currencies to reduce the potential 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…

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.

Batch payment processing

Batch payment processing refers to a procedure that involves bundling payables to process them in group payments. This method boosts efficiency by reducing the time required to execute them manually.

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…