Arbitrage - The simultaneous purchase and sale of an instrument in two different markets to profit from a temporary price disparity. Base Currency - The currency against which other currencies are quoted. Example, the primary base currency is the u.s. dollar. Basis - The spot price minus the futures price. Best Effort - An order to be executed at the best available price.
Discretion is given to the dealer as to when to execute the order.
The price for which a willing buyer will purchase the asset. Broker - An individual who matches buy and sell orders in return for a commission. The bid and offer prices are those of the market participants and not of the broker, unlike market makers. Cable - A market term used for the British Pound Sterling. Covered Interest Rate Arbitrage - A transaction which consists of borrowing in currency A, in exchange for currency B, investing currency B and covering in the forward market.