Trading platforms

Trading platforms, also known as electronic trading platforms, are software programs provided by third parties that allow investors and traders to access, monitor and operate in the financial markets in…

Transaction Cost Analysis (TCA)

Transaction cost analysis is the method used by businesses and institutional investors to find out the effectiveness of their portfolio transactions. In the corporate world, TCA is becoming a regular procedure…

Transaction Exposure

Transaction Exposure, also known as Transaction Risk is the risk that foreign exchange fluctuations pose to international companies, and can seriously affect financial obligations or even cause major losses. When a…

Transaction exposure management

Transaction exposure management is a general term referring to the different methods that companies use to protect foreign currency-denominated cash flows from transaction risk. This risk is generated by the…

Transaction risk

Transaction risk refers to the potentially detrimental effect of changes in the exchange rate during the period between commitment to a contract and its subsequent settlement. When two companies working in…

Translation Risk

Translation risk/translation exposure are corporate treasury concepts used to define the risks posed by exchange rate volatility to the value of a company’s foreign assets and liabilities. Multinational companies with overseas…

Translation/accounting exposure management

The term translation exposure management, refers to the different methods companies use to handle translation exposure, also known as accounting exposure, that is, the potential impact that an unexpected…

Tunnel forward

A tunnel forward (or cylinder forward or range forward) is a structured product that guarantees buyers protection from adverse market movements while allowing them to benefit from favourable developments up…

Under–hedging

Under-hedging is a financial risk management strategy that involves opening an offsetting position for an amount that is lower than the underlying position, leaving a certain level of risk exposure,…

Unrealised gains and losses

Unrealised gains or unrealised losses are accounting concepts referring to the impact of variations in the price of an asset or liability in the financial statement before the sale (in…

Value date

There are several definitions of value date, as its use varies in different sectors. In finance, the value date is also known as the maturity date and refers to a future…

Vanilla Currency Options

A vanilla currency option is a contract through which a seller offers a buyer the possibility – not the obligation – to purchase or sell a specific currency at a…

Virtual IBAN

A virtual IBAN (International Bank Account Number), or vIBAN, is a phantom current account issued by a bank that permits the account holder to receive an incoming payment and reroute…

Virtual IBAN account

Virtual IBAN (vIBAN) accounts are ghost bank accounts with a unique International Bank Account Number, which offer all the functionalities of traditional bank accounts (sending and receipt of payments, bank…

Virtual IBAN for businesses

A corporate virtual IBAN is a phantom bank account with an International Bank Account Number, which is used by companies with complex payment flows to simplify reconciliation efforts. More…