Financial Glossary - U to Z

The Financial Glossary has been developed to give quick access to definitions of terms and concepts used in the foreign exchange, money, equity, commodity and debt markets.

Underlying/Underlying asset:

The asset on which a futures or option contract is based.

Unrealised margin P-L

The unrealised profit/loss on your positions in margin based products.

Unrealised value of positions

The sum of non-margin positions (value of collateral), unrealised margin profit/loss (unrealised value of all open positions) and cost to close (commissions and fees.

Used for margin requirements

The amount currently used to cover your positions, combining cash balance and the value of un-booked Forex Spot and Forward positions, as well as the implied value of un-booked Forex Option positions.

Value date

The date on which the settlement of funds for a trade transaction will take place in your account.

Vanilla option

An ordinary Option with no special features.

Variable currency

In Forex, this is the currency that the investor pays with or receives when trading.

For example, in EURUSD the variable currency is USD, that is, one unit of EUR is worth a variable amount of USD.

When you buy EUR, you pay with USD, and when you sell EUR you receive USD.

The other currency (EUR in the example above) is called the base currency.

Variation margin

At the end of each trading day, trader’s positions are marked to market on the basis of the daily settlement price, thereby producing a potential loss or gain that is paid into the account or collected from it.


A measure used to describe the change in value of the Option when the volatility of the underlying asset changes.


A View is a term invented by Saxo Bank for a single tab in your screen’s workspace, which includes both trade and information modules.

You can add, change or delete Views to suit your own requirements.

For example, you may want a View set up for trading specific instruments such as DollarYen, and that includes the Chart, Trade and analysis modules specifically for DollarYen.

You will also typically want a View dedicated to a summary of your account. A number of default Views are set up in platform to get you started.


There are two types of volatility:

  • Historical volatility is actual volatility based on volatility realised in past movements in the market.
  • Implied volatility is the volatility interpreted from the price of Options. So, the implied volatility is the expected spread of movement of an underlying asset’s price, predicted over the term of the Option, and derived from the known prices of Options and the other parameters used in the calculation of those prices.


Workspaces contain the entire platform layout, including what Saxo Bank calls Views, the trading modules inside the Views, and any customised module settings. platform allows you to save any number of workspaces as separate files (.cs2 files).

Besides saving the current workspace layout, you can also save a workspace template (.cst files), that is, a basic layout that you can reload if you regret any changes made to your workspace.


The increase in the value of a company's stock value plus the dividend paid out per share from one year ago.