- U -

Uncovered - Another term for an open position.

Under-valuation - An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.

Uptick : A trade that must be executed at a price higher than the previous trade. Certain rules on the New York Stock Exchange require this during sessions of extreme volatility.

- V -

Value Date - For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country of the foreign currency. The value date then moves forward a day.

Value Spot - Normally settlement for two working days from today. See value date.

Volatility : Measure of how much the price of a currency changes over time.

Whisper Number : Analyst predictions about earnings or economic indicators. They're considered whispers because they are not made public, but inevitably become public through leaks. Some people call them rumors and attribute as much credibility to them as they do rumors.

World Trade Organization : A global organization of countries that trade with one another and set rules by which trading is conducted.

Vostro Account - A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.

- W -
Warrants : A certificate, usually issued along with a bond or preferred stock, entitling the holder to buy a specific number of securities at a specific price, which is usually above the current market price at the time of issuance, for a specific period of time.

Wash trade - A matched deal which produces neither a gain nor a loss.

Whipsaw - Term for where a trader takes a position, then has to move against it triggering stop loss limits and liquidation of positions, then having to move in the original direction. Normally occurs in volatile markets.

Working day - A day on which the banks in a currency's principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both financial center's are open for business (all relevant currency centers in the case of a cross are open).