Header

Glossary of Investment Terms: U

Uncovered
Another term for an open position.

Under Reference (Order)
Before finalizing a transaction all the details should be submitted for approval to the order giver, who has the right to turn down the proposal.

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

Undo
A colloquial term for reversing a transaction, e.g., a spot sale by means of a forward purchase or if done in error a spot purchase.

Unload
Term for sale of assets or unwinding positions either to limit loss or to undermine other market participants positions.

Unmatched Book
If the average maturity of a banks liabilities is less than that of its assets, it is said to be running an unmatched book.

Unrealized Gain/Loss
The theoretical gain or loss on Open Positions valued at current market rates, as determined by the broker in its sole discretion. Unrealized Gains' Losses become Profits/Losses when position is closed.

Unwind
Selling of assets and or instruments to square a position.

Up-Tick
A transaction executed at a price greater than the previous transaction.

Uptick Rule
In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.

USDX
Currency index which consist of the weighted average of the prices of ten foreign currencies against the U.S. Dollar: Deutsche Mark, Japanese Yen, French Franc, British Pound , Canadian Dollar, Italian Lira, Dutch Guilder, Belgian Franc, Swedish Krona, and Swiss Franc.
US Prime Rate - The interest rate at which US banks will lend to their prime corporate customers.

U.S. Quote
Exchange rate quotation on a reciprocal basis. Also known as an American Quote.