Glossary of trading terms

The value date is the date on which counterparts to a financial transaction agree to settle their respective obligations. At the value date, the value of an account, transaction, or asset goes into effect. The value date is more commonly called the maturity date.

In trading the value date denotes when the transaction is completely settled, i.e. the payment is finalized and the asset’s ownership is transferred. When spot trading forex, the value date is often set two days after the trade is closed and the transaction finalized.

Funds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations.

Shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely used measure of market risk and is often referred to as the ‘investor fear gauge.’

An active market that is experiencing rapid price changes, that can present trade opportunities.