AGGREGATE DEMAND
It is an economic measurement of the total demand for all the finished goods and services in an economy/sector. It indicates how current price levels relate to a nation’s real GDP (Gross Domestic Product).
APPRECIATION
It refers to an increase in the value of one currency in relation to another currency in response to market demand.
ARBITRAGE
The purchase of a financial asset in one market and concurrent sale in another market to benefit from the price differentials is known as arbitrage.
AROUND
Dealer jargon used in quoting when the forward premium/discount is near parity. For example, “two-two around” would translate into 2 points to either side of the present spot.
ASK RATE
The rate/price at which a financial instrument is offered for sale.
ASSET ALLOCATION
An investment strategy that aims to balance risk and reward by allocating funds to different stocks, bonds, commodities, currencies and other asset classes as per investors objectives.