Managed floating exchange rate

A managed floating exchange rate is a regime that allows an issuing central bank to intervene regularly in FX markets in order to change the direction of the currency’s float…

Margin

In accounting vocabulary, the concept of margin defines the difference between the cost of producing a good or service and the price at which it is sold. Effectively, in this…

Margin Call

A margin call, also known as “fed call” or “maintenance call” is an action performed by brokers to their clients, requiring them to deposit additional funds or securities, when the…

Margin deposit

A margin deposit is a type of security common in the trading of financial instruments, including foreign exchange and futures and options contracts. More info

Margin requirement

Margin requirement is a financial concept related to the minimum amount in collateral that the issuer of a financial security requests from the buyer, to hedge against the risk of…

Margin risk

Margin risk is an accounting term that refers to the probability that economic developments might have a negative impact on the profit margins of a company’s expected cash flow. The concept…

Mark-to-market

Mark-to-market accounting, also referred to as “marked-to-market” accounting, is the procedure used to obtain the market value of assets and liabilities through daily revaluation rather than referring to the “book…

Market maker

In financial markets, the figure of a market maker defines any company with the power to set buy and sell prices of financial instruments or commodities. The U.S. Securities and…

Market Order

A market order is one of the most basic tools to automate the management of foreign currency exchange and involves executing a sale or a purchase in financial markets…

Maturity date

In a financial context, the maturity date, or simply maturity, is the date on which a financial instrument falls due (whether it be a loan, securities contract or any other…

MEPS+

The MEPS+ or MAS Electronic Payments Systems as it is also known, is a gross settlement funds transfer system, specifically developed for large-value Singapore dollar (SGD) transactions and interbank fund…

Micro-hedging

Micro-hedging is a currency management strategy that consists of hedging each transaction as it occurs. Unlike in other strategies whereby users take protective action after reaching a certain nominal threshold,…

Mid market rate

The mid-market rate is the midpoint between the buy and sell prices of two currencies or, in other words, between what the buyer is prepared to pay and what the…

Minimum variance hedge ratio

The minimum variance hedge ratio, also known as the optimal hedge ratio, is a formula to evaluate the correlation between the variance in the value of an asset or…

Monetary assets and liabilities

Monetary assets and liabilities is a financial accounting term that refers to all assets and liabilities whose value is measured and stated in cash, and that are likely…