Emerging 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.
Related terms
FX Exposure
The degree to which a business’s financial results are affected by exchange-rate movements. It arises from foreign-currency sales, purchases, assets, liabilities or forecast cash flows.
Read full definitionTrade Finance
Funding and risk-mitigation tools, such as letters of credit and guarantees, that help businesses buy and sell goods across borders by bridging the gap between paying suppliers and getting paid by customers.
Read full definitionHedging
Taking an offsetting position to reduce the impact of currency or price movements on a business. The aim is to protect margins and make cash flows more predictable, not to speculate.
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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 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.
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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.
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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