Asset
An economic resource that individuals, companies and other organisations can own or control to generate profit or future benefit. In FX the term frequently refers to a currency or currency pair, and assets also underpin the pricing of derivative products such as CFDs and options.
Related terms
Underlying
The original asset in a derivatives contract, the asset whose price the trade speculates on. Underlying assets can be stocks or commodities in an options trade, or financial metrics such as a benchmark index or interest rate.
Read full definitionPortfolio
A collection of investments owned by an entity.
Read full definitionLiability
Sums owed by a person or company, settled through the transfer of cash, goods or services and recorded against assets on the balance sheet. Liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties and accrued expenses; the term can also refer to a legal or regulatory obligation.
Read full definitionMore in General
Working Capital
The cash a business has tied up in day-to-day operations, broadly its current assets minus current liabilities. Healthy working capital lets a company pay suppliers and staff while waiting on customer payments.
Read full definitionEmerging Markets
Economies that are developing toward advanced-market status, often offering higher growth alongside greater currency, political and liquidity risk. Trading with them frequently calls for tailored FX and payment solutions.
Read full definitionAnnual General Meeting (AGM)
A formal, legally mandated gathering where a company’s shareholders meet with the board of directors and executives once a year to discuss financial performance and strategic direction. Publicly listed companies must hold AGMs to comply with corporate governance laws, while rules for private companies vary by jurisdiction.
Read full definitionBasis Point (bps)
A unit of measurement equal to 1/100th of 1%, or 0.01%, pronounced ‘bips’. Basis points are commonly used to describe small movements in interest rates, bond yields and exchange rates.
Read full definitionCapital Gains
The profit earned from selling an asset, such as stocks, bonds or real estate, for more than its purchase price. Capital gains are taxable and classified as short-term or long-term depending on the holding period.
Read full definitionCompliance
Adherence to the laws, regulations, guidelines and specifications relevant to a business. In the FX market it involves following financial services rules and guidelines.
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