Working Capital
The cash a business has tied up in day-to-day operations, broadly its current assets minus current liabilities. Healthy working capital lets a company pay suppliers and staff while waiting on customer payments.
Related terms
Liquidity
How easily an asset can be converted into cash, or how readily a business can meet its short-term obligations. Strong liquidity means funds are available when and where they are needed.
Read full definitionInvoice Finance (Factoring)
Borrowing against unpaid invoices to release cash tied up in receivables. The lender advances a percentage of each invoice up front and collects, or is repaid, when the customer pays.
Read full definitionRevolving Credit Facility
A flexible credit line a business can draw down, repay and reuse up to an agreed limit. Interest is charged only on the amount outstanding, making it useful for managing fluctuating working-capital needs.
Read full definitionMore in General
Emerging Markets
Economies that are developing toward advanced-market status, often offering higher growth alongside greater currency, political and liquidity risk. Trading with them frequently calls for tailored FX and payment solutions.
Read full definitionAnnual General Meeting (AGM)
A formal, legally mandated gathering where a company’s shareholders meet with the board of directors and executives once a year to discuss financial performance and strategic direction. Publicly listed companies must hold AGMs to comply with corporate governance laws, while rules for private companies vary by jurisdiction.
Read full definitionAsset
An economic resource that individuals, companies and other organisations can own or control to generate profit or future benefit. In FX the term frequently refers to a currency or currency pair, and assets also underpin the pricing of derivative products such as CFDs and options.
Read full definitionBasis Point (bps)
A unit of measurement equal to 1/100th of 1%, or 0.01%, pronounced ‘bips’. Basis points are commonly used to describe small movements in interest rates, bond yields and exchange rates.
Read full definitionCapital Gains
The profit earned from selling an asset, such as stocks, bonds or real estate, for more than its purchase price. Capital gains are taxable and classified as short-term or long-term depending on the holding period.
Read full definitionCompliance
Adherence to the laws, regulations, guidelines and specifications relevant to a business. In the FX market it involves following financial services rules and guidelines.
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