Forex Glossary - S -

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Scalping: The strategy of buying and selling in a short time lapse. The time duration is anywhere between 1-10 minutes

SDR: stands for Special Drawing Rights and is defined as a standard basket of the major currencies in fixed amounts used in the financial world.

Sell Limit Order: An order to execute a transaction at a specified price referred to as the limit or higher.

Selling Rate: Is the rate at which banks are willing to sell foreign currency.

Selling Short: Strategy used where trader sells a position and buys it back at a lower price in the future thus making a profit.

Settlement Date: This is the final stage of a transaction or the maturity date of a trade where actual delivery of the currency is made.

Settlement Price: This is the price at the close of each trading session set by the clearing-house where trading companies determine net gains and losses.

Settlement Risk: Form of credit risk that occurs due to the time zone separating the nations for non-settlement of transaction.

Short Position: When a currency is sold, it is referred to as a short position. Selling Eur/Usd means going short on Euro and long on Dollar.

Short Covering: Is the purchase of securities in order to close out an open short position.

SIMEX: Singapore International Monetary Exchange.

Spot: Transaction of either buying or selling that comes to settlement in two days.

Spot Next: A foreign exchange deal that matures one business day pass the spot date.

Spot Price: Current market price of a spot transaction.

Spot Rate: Current market rate of a spot transaction.

Spread: Is the pips or points that separates the bid and ask price of a currency. Difference is called the spread.

Stable market: A market that does not experience major currency moves. Thus buying and selling is in balance.

Sterling: Also known is ‘Cable’, is a term used to describe the British Pound.

Stop Loss Order: This is an order used to exit, at a specified price, in a losing trade.

Stop Order: Order to buy or sell a currency once price goes pass a desired level.

Stagflation: Situation where a country is experiencing low growth in the economy and at the time is affected by high inflation.

Support Levels: Level at which demand exceeds supply. Usually described as a level where buying pressure is high.

Swap: This is a foreign exchange deal that consists of a spot deal and a forward outright deal.

SWIFT: Society of Worldwide Interbank Financial Telecommunication. This is a global electronic network set up to send standardized payment instructions for foreign currencies among international banks.

Swissy: Term used to refer to the Swiss Franc.