Dealer
A financial institution, typically a bank, that trades foreign currencies on its own behalf in volumes large enough to help maintain market liquidity and regulate bid and ask quotes.
Related terms
Broker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Read full definitionMarket Maker
A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial product.
Read full definitionInterbank Rate
The rate at which banks transact foreign currency with other banks. Interbank rates are typically better than those offered to retail customers and are used as the basis for setting them; like all FX rates, they fluctuate constantly.
Read full definitionMore in Trading
Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
Read full definitionAt or Better
An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
Read full definitionBuy
Taking a long position on a product.
Read full definitionWant this applied to your business?
Our specialists turn Trading concepts into a practical strategy.