Forex Glossary - M -

A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-X-Y-Z


M1: Is a measure of money supply that constitutes of currency in circulation plus demand deposits at commercial banks.

M2: Money supply measure consisting of M1 and includes demand deposits, time deposits and money market mutual funds.

M3: Is a measure of money supply that is composed of M2 and private sector time deposits and all balances in institutional money market mutual funds.

Maintenance: A set minimum margin that an investor must keep on deposit in his margin account.

Margin: The amount of money provided by client that is needed to maintain a position.

Margin Account: An account that allows leverage buying on credit and borrowing on currencies already in the account. Buying on credit and borrowing are subject to standards established by the firm carrying the account. Interest is charged on any borrowed funds and only for the period of time that the loan is outstanding.

Margin Call: A call for additional funds to be deposited in a margin account so as to meet the margin requirements in possible adverse price movement.

Mark-to-Market: The theoretical value of an open position at the current market price.

Market Close: Refers to the time of day that a market closes. It is important to note tat there is no official market close in the Fx market. Banks and traders commonly refer to 5:00 PM EST as the market close

Market Maker: A person or firm that provides liquidity by creating and maintaining a market in an instrument.

Market Rate: The current quote of a currency pair.

Market Risk: The risks that occur when the value of an investment in the market moves downwards.

Maturity: The date at which a foreign exchange contract expires.

MM: Short for Money Market which consists of financial institutions and money dealers.

Momentum: It can is described as the energy of a currency pair to be moving in a particular direction for an extended period of time.