Economic health is a term used to describe the overall states of economy of a particular country or region. There are a lot of aspects that can form economic health of the country.

 

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A natural hedge is risk reduction by means of using the institutions which are exposed to large swings in exchange rates by exploiting their normal operating procedures. This includes receiving income in another country and currency while incurring expenses in that same currency.

 

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Range is the term describing the difference and distance between low and high prices for a security over a certain period of time. Range defines the spread of the price in a certain period of time and can indicate volatility of the price.

 

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Permitted currency is a currency which is not bonded by any regulatory restrictions that can keep it from being converted into other currency.

 

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Inconvertible currency is a name given to the currency the conversion of which into another currency is forbidden. There can be several reason for that like different forbidding regulations, physical barriers or political sanctions.

 

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Asian currency unit is a proposed basket of Asian currencies which was created alike to European currency unit. It was supposed to become Asian analogue of euro. The idea was explored by Asian Development Bank.

 

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Spot next is a term used to describe the day of delivery of the purchased currency the next day after the spot date. It can also be referred to as a ‘next business day’.

 

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Spot date is a day when a spot trade transaction is carried out, meaning it is the exact day when the involved-in-transaction funds are transferred. In currency market spot date is usually set in 2 days after the order is placed.

 

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Liquidity trap is market’s condition when interest rates are too low and savings rates are too high. They can appear as a result of ineffective monetary policy.

 

Mine and yours is the term used by the floor traders in order to describe buying and selling process respectively. When they want to buy a security they only type ‘mine’. The same with selling and ‘yours’. This was invented for the quick and easy communication between two brokers during a fast transaction.

 

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