Bankers Automated Clearing Services is a scheme for the electronic processing of financial transactions. Direct Credits are a simple, secure and reliable service which enables both personal; and business customers of all sizes to make payments by electronic transfer directly into a bank or building society account. BACS payments are free of charge for private clients; however bank charging tariffs will apply to business clients. In general BACS payments take three working days to arrive, however on occasion BACS payments may be delayed by up to one day to allow your bank to carry out some additional checks to protect your account from potential fraudulent activity.
A Market with a downward trend indicating Lower Prices
Clearing House Automated Payment System is an electronic bank to bank, same day value payment within the UK in either Sterling or Euro.
A Broker is a middleman between a client – company and the market.
Foreign Exchange jargon for the UK Pound v US Dollar exchange rate. Alludes to the cable laid under the Atlantic, which linked the tickertape machines in New York and London.
European Central Bank. Manage the Euro currency and European interest rates/monetary policy.
The exposure/potential loss a company faces from a movement in exchange rates.
This is the American central bank
The Federal Open Market Committee. The monetary policy making and tactical arm of the Federal Reserve. This is the committee which sets US interest rates.
An abbreviation of foreign exchange.
Different countries will generally have different interest rates. When buying one currency against another for delivery at a future date, the bank or broker will adjust the spot (immediate delivery) price to take this variation into account. The sale of a low yielding currency (in a low interest-rate economy) and the purchase of a high yielding one will be reflected in a higher net price than the spot rate. This is described as "points on" for the forward adjustment. Obviously the opposite position results in a "points off" adjustment.
A hedging transaction is one that protects an asset or liability against fluctuation in the foreign exchange rates. For commercial forex deals the most popular hedging tool is a Forward Contract. A forward contract allows a company to lock in a rate of exchange based on today's spot price (with an adjustment for the 'forward points') for a future date when they need to buy or sell a foreign currency.
The rates banks/brokers quote other banks/brokers for trades between banks (inter-bank). The true market price. The prices quoted for transactions in excess of £500,000 or equivalent.
Generally associated with the setting of interest rate levels in an economy to try and stimulate or stifle borrowing and thus control consumer demand/spending. Conventional wisdom states that if interest rates move in an upward direction in one nation (under normal economic circumstances) then the currency in that nation should move up in value against foreign currencies. The rationale is that the rate of return on interest bearing deposits become more attractive and the foreign demand for that currency should increase.
The committee within the Bank of England (UK Central Bank) which is responsible for setting interest rates in the UK.
Refers to a purchase or sale of currencies between the hours of 21: 00 and 08:00, which can be done through using stop loss or limit orders.
Most currencies are quoted in five digit figures, irrespective of the position of the decimal point. A PIP is the phrase used to describe the smallest part of an exchange rate. Example: on the £ v US$ rate of £/$ 1.6500 a pip is 0.0001. Accordingly if the rate moves up by 5 pips the resulting rate in the example will be 1.6505. A POINT is generally 100 pips. In the above example, if the rate moves up by 100 pips (one point) the resulting rate will be 1.6600
Resistance is a forecasted price level where the rate of exchange should encounter selling pressure, which should stop the price/rate from rising any further. Main market participants (Investment funds, Banks etc.) look for resistance and support levels to place orders and thus they become, to a large degree, self-fulfilling prophecies. See also SUPPORT.
Spot means the settlement date of a deal that is two business days forward. It is the rate used if a client wishes to buy currency for the fastest possible delivery.
The difference in prices between bid and offer rates. The inter-bank spread is considered the smallest and the variation between tourist buy & sell rates is generally the largest.
An order to buy or sell one currency against another when a pre-determined price is reached. It is lodged with a Bank or Broker and offers 24-hour protection and will float until either cancelled or hit. It is used to protect your purchase or sale of a currency from negative movements in the market overnight or over a period of days/weeks. It is free of charge to use and provides an excellent vehicle for companies to protect themselves from negative movements while leaving the door open to a company to benefit if the market moves in their favour.
Support is a forecasted price level where the rate of exchange should encounter buying pressure, which should stop the price/rate from falling any further. Main market participants (Investment Funds, Banks etc.) look for support and resistance levels to place their orders and thus they become, to a larger degree, self-fulfilling prophecies. See also RESISTANCE.
Technical analysis is the study of market action, primarily through the use of charts, for the purposes of forecasting future prices and trends. Technical analysis provides details of SUPPORT and RESISTANCE levels. It further identifies trends and indicates when a trend is reversing. It is widely used by the main market players (the people who move the rates with the volumes they trade) and accordingly has arguably become the most popular form of analysis in tracking and forecasting currency movements.
Means a market where the price is moving higher
European Monetary System
European Monetary union
Means how much of a foreign currency you will get for 1 unit of your own currency
International Bank Account Numbers (IBANs) were introduced in 2001 to provide a standard format for account numbers across Europe, to improve the quality of information exchanged between parties involved in European cross-border payments to help minimise errors and delays.
The date of settlement for either a spot or forward contract
This code identifies the bank with whom the beneficiary holds their account for use when sending funds cross-border.
This is a request for a bank's opinion as to a particular customer's ability to meet a specific financial commitment. It will be based on the financial standing of the customer in question. A status enquiry cannot be given without the prior consent of the customer. A bank’s reply to a status enquiry should help the originator of the enquiry to build up a picture of a particular individual or business, but it should never be considered, or relied on, in isolation.
This is to thank you and your company for pulling out all stops to get the £4000 to an account in France. The money arrived in my friend's acct 15 mins before the bank closed in the evening. This meant they were able to go to the agent (she was staying open for them) and sign the contract for their apartment, be given the keys and catch their return flight to UK at 5 am the next morning!!!! A job very well done. Warm regards Felicity
Personal client
Just a quick e-mail to thank you for the excellent service (as always) - the money arrived in our Portuguese account today. I have already recommended your company to English friends here in Portugal telling them how efficient you are. Once again, many thanks. Deborah
Personal client
I wanted to express our grateful thanks for all your help during the transfer of funds from England to France. As I explained before I contacted you we had three weeks of difficulties in trying to get money transferred. Other firms saying they would do something and then not doing it. From the minute I first spoke with you, I knew everything was going to work out ok. I want to compliment you on your efficiency, professionalism and above all the friendly way in which you dealt with us. Once we had got over the hurdle of transferring the money from our English bank account (the bank’s fault) everything worked just like clockwork, as you had said it would. We would have no hesitation in recommending your company and in particular yourself to anyone. Kind regards Angela
Personal client
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