Custodian has a particular significance in relation to IG's platform. Here, we define custodian in general investing and explain what it means to you when trading with IG.

 

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A currency peg is a governmental policy of fixing the exchange rate of its currency to that of another currency, or occasionally to the gold price. It can sometimes also be referred to as a fixed exchange rate or pegging.

 

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A currency future is a contract that details the price at which currency could be bought or sold and sets a specific date for the exchange.

 

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Currency depreciation is the decline of a currency’s value relative to another currency. It specifically refers to currencies in a floating exchange rate – a system in which a currency’s value is set by the forex market, based on supply and demand.

 

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Currency appreciation is when one currency in a forex pair increases in value relative to the other currency in the pair. Forex traders often talk about one currency ‘strengthening’ in relation to another, meaning that it would cost more to buy, or that it can buy more of another currency when sold.

 

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CPI stands for the consumer price index, an average of several consumer goods and services that are used to give an indication of inflation.

 

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