Appreciation- Improvement of a particular currency.
Arbitrage- Deal in two or more markets at the same time in order to take advantage of temporary mispricing to gain profit

Ask- The offered price of certain currency or instrument.
At-The-Money- Strike price equals the price of the underlying contract.
Authorized Dealer- A financial institution authorized to deal in foreign exchange.
Balance of Payments – A systematic record of the economic transactions during a given period for a country.

Bid- The rate at which a dealer is willing to buy the base currency.
Broker- Associate the buyers and sellers in order to get commission.

Call- An option by the buyer to long a position in the underlying contract at a particular price
Cross Rate- Exchange rate at which there is no currency of US dollar involve.
Deal Date- The date on which a transaction is agreed upon by both parties.
Depreciation- A falls in the value of a currency.
Derivative- Financial instruments, such as futures and options
Fixed Exchange Rate- Certified rate assigned by monetary authorities for one or more currencies.

Flexible Exchange Rate- Exchange rates with a fixed parity against one or more currencies which is a form of managed float.
Floating Exchange Rate- When the value of a currency determined by supply and demand.

Foreign Exchange- The buying and selling of currencies
Forward Rate- The rate at which a foreign exchange contract is set today for settlement at a specified future date.
Futures- Contracts arise from obligation to buy or sell an asset at a set date in the future.

Long - A position where the one party has bought a currency that he does not already own.

Offer- The selling rate of the base currency at which a dealer is willing to accept.

Option- The right, but not the obligation, to buy or sell an asset on or before a set future date.

Out-Of-The-Money- Option calls that have strike prices higher than the price of the underlying contracts, and puts with strike.
Pegged- A system where a currency moves parallel with another currency.

Put
In options, the buyer of a put has the right to acquire a short position in the underlying contract at the strike price until the option expires and the seller has to take a long position.

Short- One party sold a currency he does not already own.

Speculation- Buying or selling currency in expectation or forecasting the exchange rate movement.

Spot Price - The price at which the currency is currently trading in the market today

Strike Price- The specified price in call options at which the buyer has the right to purchase the underlying contract.

Swap- An agreement between two parties to transact under foreign exchange in a series of future payments