Grain Glossary

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Get an overview of financial terms and their definitions. < BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z V Value at Risk (VaR) Value at Risk (VaR) measures the risk of loss on an investment or portfolio over a specified period. Based on the performance of the investment or portfolio over a given period, it estimates the likelihood of a loss of a certain magnitude over a given period. VaR is typically expressed as a dollar amount or as a percentage of the total value of the investment or portfolio. Vega In finance, vega measures how sensitive an option price is to changes in the volatility of the underlying asset. It is a Greek letter used in options pricing formulas to represent the amount by which the price of an option is expected to change in response to a 1% change in the volatility of the underlying asset. Vega is typically expressed as a percentage, and it reflects the impact that changes in volatility can have on the value of an option. Volatility In finance, volatility refers to the amount of risk or uncertainty associated with the price of a security. It is a measure of how much the price of a security, such as a stock or bond, fluctuates over time. A security with high volatility experiences significant price changes over a short period of time, while a security with low volatility experiences less significant price changes. Volatility can be measured using a variety of statistical techniques, such as standard deviation or the variance of returns. Volatility Surface In finance, a volatility surface is a graphical representation of the implied volatilities of a group of options on a particular underlying asset, as a function of the options' expiration dates and strike prices. The volatility surface is used to help visualize the relationships between the implied volatilities of options with different expiration dates and strike prices, and can be used to model the expected volatility of the underlying asset over time. < PREVIOUS NEXT >

Get an overview of financial terms and their definitions. < BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z N Negative Carry A negative carry occurs when the cost of holding a financial asset exceeds the income generated by it. It occurs typically when an asset pays a lower return than what it costs to finance its purchase. Nominal Effective Exchange Rate An unadjusted weighted average rate at which one country's currency exchanges for a basket of multiple foreign currencies is called the nominal effective exchange rate (NEER). Nominal exchange rates indicate the amount of domestic currency needed to purchase foreign currency. Non-Deliverable Forward Non-deliverable forwards (NDF) are cash-settled, and usually short-term, forward contracts. The notional amount is never exchanged, hence the name "non-deliverable." Two parties agree to take opposite sides of a transaction for a set amount of money—at a contracted rate, in the case of a currency NDF. Notional Value The notional value of an underlying asset is often used by derivatives traders to refer to the contract's value. This can be the total value of a position, the amount that a position controls, or an agreed-upon amount. A financial asset's face value is used to determine its payment. In the options, futures, forward, and currency markets, this term describes derivative contracts. Notional Currency Notional currency refers to the currency in which the nominal or face value of a financial instrument—such as a derivative contract—is denominated. It is not necessarily the currency that changes hands, but rather the reference amount used to calculate payments or the value of a position. Natural Hedge A risk management strategy that reduces exposure by aligning assets with inherent negative correlations or by matching operating expenses and revenues in the same currency to minimize exchange rate risk. < PREVIOUS NEXT >

Be part of Grain's team, playing a crucial role in building and optimizing the company's Sales strategies. < Back Key Account Manager – Embedded FX Hedging Solutions Be part of Grain's team, playing a crucial role in building and optimizing the company's Sales strategies. Full Time Tel Aviv Apply Now Key Account Manager – Embedded FX Hedging Solutions Location : Tel Aviv, Israel About Grain: We are a cutting-edge fintech company specializing in embedded FX hedging solutions, optimized for micro-transactions. Our processing technology transforms the way global CFOs manage risk and complexity, while turning them into champions of accelerated sales growth. Our technology optimizes FX to drive higher sales by integrating into both front-end sales interfaces at the customer side while also eliminating risk by integrating into back-end payment and treasury workflows. By integrating our solution, businesses can enhance their pricing strategies, streamline cross-border transactions, and ultimately boost sales volumes. Role Overview: As an Account Manager, you will be the primary point of contact for our clients, ensuring successful adoption and ongoing optimization of our FX optimization and hedging solutions. This role requires deep expertise in complex financial products, long integration cycles, and a consultative approach to account management. You will work closely with CFOs, product teams, and tech teams at client organizations to drive engagement, retention, and growth. Understanding both front-facing and back-end processes at the customer level is crucial to helping them leverage Grain's product to its fullest potential. Key Responsibilities: Client Relationship Management: Develop and maintain strong relationships with enterprise clients, ensuring they derive maximum value from our FX optimization and hedging solutions. Consultative Approach: Provide expert guidance on product capabilities, best practices, and FX risk management strategies to help clients automate and optimize their FX hedging. Integration & Implementation: Collaborate with product and engineering teams to support clients through complex, long-cycle integrations of our embedded solutions. Retention & Growth: Avoid churn, identify opportunities for upselling and cross-selling additional features or services that align with client needs. Market & Product Feedback: Gather insights from clients to influence product development and strategy. Training & Enablement: Conduct client training sessions and create educational materials to enhance product adoption. Regulatory & Compliance Knowledge: Stay updated on relevant FX and payments regulations to provide informed recommendations to clients. Cross-Functional Engagement: Work closely with CFOs, product teams, and tech teams at client organizations to ensure seamless implementation and maximum impact of our solution. Sales Enablement: Support clients in understanding how Grain’s product can drive higher sales conversion, requiring a deep understanding of both front-facing customer processes and backend financial operations. Qualifications & Experience: Experience: 7+ years in account management, customer success, or similar roles within fintech, preferably in FX, payments, or treasury solutions. Product Knowledge: Strong understanding of FX markets, hedging strategies, and payment infrastructure. Integration Expertise: Experience managing long and complex integration processes, particularly in API-driven or embedded financial products. Consultative Selling: Ability to engage with clients at a strategic level, offering tailored solutions to meet their unique needs. Technical Acumen: Familiarity with API-driven solutions and the ability to liaise effectively with technical teams. Analytical Skills: Ability to interpret financial data, client behavior, and market trends to drive decision-making. Excellent Communication: Strong verbal and written communication skills, with the ability to simplify complex concepts for diverse audiences. Why Join Us? Shape the Future of Embedded Fintech: Be part of a company redefining FX risk management and micro-transaction optimization. Work with Industry Leaders: Collaborate with top-tier enterprises and CFOs tackling complex global payment challenges. Culture of Ownership & Impact: We empower team members with autonomy, responsibility, and a direct influence on our company’s growth and success. Fast-Paced & Collaborative Environment: Join a team that values agility, innovation, and teamwork, where ideas are heard, and execution is fast. Continuous Learning & Development: We invest in our people with mentorship, learning programs, and opportunities to grow within the company. High-Caliber Team: Work alongside fintech, FX, and engineering experts who are passionate about solving real-world problems. Competitive Compensation & Benefits: We offer a strong package, including performance-based incentives, flexible work arrangements, and career growth opportunities. If you are passionate about fintech, FX, and delivering exceptional client experiences, we’d love to hear from you! Apply Now

Get an overview of financial terms and their definitions. < BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z M Market Maker A market maker is a firm or individual that buys or sells securities at any time with the goal of providing liquidity to the market and facilitating trade. Market makers typically hold an inventory of securities that they buy and sell, and they provide quotes to buyers and sellers using their capital and liquidity. Market makers play a crucial role in facilitating price discovery and trade execution by providing a source of demand and supply for securities. Market makers may operate on exchanges or in the over-the-counter (OTC) market. Market Taker A market taker buys or sells securities by accepting the price quoted by market makers or other traders. By contrast to market makers, who can buy and sell securities at any time and provide quotes to the market, market takers are passive participants who rely on quotes provided by others in order to execute trades. Market takers do not provide liquidity to the market in the same way that market makers do, but they can benefit from the liquidity provided by market makers and other traders by being able to quickly and easily buy and sell securities at quoted prices. Market takers may also be referred to as "buyers" and "sellers," depending on whether they are buying or selling securities. Major currency A major currency is a term used to describe a currency that is widely traded and used in international transactions. Major currencies are typically from economically and politically stable countries, and are considered to be relatively liquid and stable compared to other currencies. Mark to Market Mark to market (MTM) is a method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution's or company's current financial situation based on current market conditions. Monetary Assets A monetary asset is one that is readily convertible into money, such as cash on hand, bank deposits, investment accounts, accounts receivable (AR), and notes receivable. Midmarket Exchange Rate The midmarket exchange rate (sometimes called the interbank or middle rate) is the midpoint between any two currencies' buy and sell prices. As the demand for and supply of a currency is constantly changing, the mid-market rate is also constantly changing. Managed floating exchange rate A managed floating exchange rate, or "dirty float," blends elements of fixed and floating rates. Central banks, like China's, intervene to keep the currency within a set range against others, such as the USD, with daily fluctuations capped at 2%. This system helps prevent extreme currency misvaluations. For credibility, it relies on a central bank with ample reserves and a market-aligned exchange rate corridor. Merchant of Record (MoR) A merchant of record (MoR) is a legal entity that sells goods or services to end consumers on behalf of a merchant, and assumes all legal liabilities for the transaction . MoRs are often used in online commerce and are designed to help sellers scale their businesses globally. < PREVIOUS NEXT >

Simplify FX hedging with Grain, an embedded currency solution designed to protect your platform against currency volatility. Grow Your Business with Embedded Hedging Gain certainty, save costs and drive higher sales with our embedded cross-currency solution Book a Demo Watch Video BACKED BY INDUSTRY LEADERS Discover Grain's Solution Explore the powerful capabilities of our solution designed to simplify and enhance your cross-currency transactions. Easy Integration via Flexible API Customize our flexible API for your platform's unique needs. Experience easy, adaptable integration for effective FX protection. Cross-Currency Protection Shield your transactions from currency fluctuations. Our solution offers robust FX risk protection, ensuring stability in your financial planning. Visibility and Control via the Grain Dashboard Manage and monitor your FX activities with our Grain Dashboard, offering essential insights for informed decision-making. AI-Powered Models for Adaptive Rates Our AI models adjust hedging costs based on customer profiles, considering factors like cancellation history and currency preferences, ensuring efficient and custom-fit pricing. Perfect For Any Industry Our industry specific solutions are engineered to fit your needs and goals. Travel Platforms Supply Chain Payment Providers Marketplaces Discover Our Solution See the video to learn more about Grain Watch The Full Video Why Choose Grain? Unveiling the Key Benefits for Your Business Reduce FX Pains Grain assumes 100% of your currency risk, guaranteeing your FX rates without the hassle of managing FX volatility on your own. Save Costs Lower your cost of hedging and cross-border payments by a typical factor of 80% relative to existing solutions. Boost Sales Integrate a menu of FX modules that brings measurable financial value to your customers. Simplify Financials Enable your customers to pay you over their local rails without any FX risk and without requiring expensive markups. See Grain in Action Add currency certainty - without the complexity. Get Started Why is currency protection crucial for my business? Currency volatility can lead to unpredictable financial outcomes, affecting your bottom line. Grain's currency protection ensures stability in your international transactions, allowing for more consistent financial planning and reduced risk exposure. How does Grain protect my business from currency volatility? Grain protects your business from currency volatility through our innovative embedded currency hedging solution. Our data-driven cross-currency approach is designed to shield your transactions from currency fluctuations, ensuring stability on future accounts receivables or payables. Using a straightforward data stream via API or file sharing, Grain assumes all currency risks away from you. What kind of data does Grain require to provide currency protection? Grain focuses on transactional data related to your cross-currency activities. This includes details of international transactions, payment histories, and related financial data. We are committed to maintaining the highest standards of data security and privacy. How does Grain's Machine Learning model enhance FX protection? Our Machine Learning model analyzes past transaction patterns to create FX protection strategies specifically for your business or your end users. This includes creating pricing based on customer behavior, like cancellations and payment delays, thereby minimizing risk and maximizing efficiency. What security measures does Grain take to protect my data? At Grain, we prioritize your data's security and privacy. We use advanced encryption and security protocols to ensure that all data processed through our system is protected. Our commitment to data privacy is backed by continuous monitoring and adherence to the latest security standards. Which currencies does Grain support for transactions? Grain supports a wide range of currencies, facilitated by our multi-currency wallet feature. This allows you to create and manage accounts in various currencies, enhancing your ability to conduct and receive payments globally. Whether you're dealing in major world currencies or more localized ones, our platform is designed to cater to your diverse currency needs. How does Grain currency volatility protection work? Grain's currency volatility protection works through an AI-driven solution. Firstly, it integrates with your platform to report transactions. Then, it provides real-time local currency quotes to your users, ensuring exchange rate certainty. Grain assumes 100% of the FX risk, guaranteeing the rates promised. Finally, on the due date, Grain automates the currency exchange at the guaranteed rate, completing the transaction seamlessly. Do I need the entire payment amount to be processed via Grain? No. You can elect whether to convert the entire transaction amount via Grain, or to only settle the currency offsets How does the Grain Local Collection functionality work? Grain opens multiple cross-currency bank accounts, facilitating seamless local collections for global business operations. FAQs

Get an overview of financial terms and their definitions. < BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z Hedger Hedgers are investors or financial institutions that engage in financial transactions to reduce the risk of potential losses on assets. Hedging involves taking offsetting positions in financial instruments to mitigate the impact of price movements on the underlying asset. There are many different ways that investors and financial institutions can hedge their risks, depending on their specific needs and the nature of the underlying asset. Some common hedging strategies include the use of financial derivatives such as options and futures, as well as the use of diversification and portfolio optimization techniques. Historical Volatility Historical volatility refers to the fluctuations in the price of a security over a specific period of time. Calculated by taking the standard deviation of the natural logarithm of the asset's price over a specified number of trading days. The higher the historical volatility, the greater the price fluctuations of the asset. Historical volatility can be used to help predict future volatility and risk, but it is important to note that past performance is not necessarily indicative of future results. < PREVIOUS NEXT >

Get an overview of financial terms and their definitions. < BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z E Electronic invoicing Electronic invoicing (e-invoicing) refers to the creation, exchange, and processing of invoices electronically instead of on paper. E-invoicing involves sending invoices electronically between a supplier and a buyer, usually via the internet. There are several benefits to this method of invoicing over traditional paper invoicing, including increased efficiency, reduced errors and fraud, improved cash flow, and lower costs for printing and mailing. In addition, e-invoicing can be integrated with financial systems, making the accounts payable process easier to automate and improving cash flow visibility. Embedded finance Embedded finance refers to the integration of financial services into non-financial products or services. This can take many forms, such as adding payment or lending functionality to a mobile app or website, or bundling insurance or investment products into a larger offering. Embedded finance aims to make financial services more accessible for consumers by bringing them directly into the products and services they use. Emerging markets Emerging markets refer to countries that are in the process of developing their economies and are considered to be of high growth potential. These countries are often classified as being less developed than more industrialized nations and are characterized by a lower level of per capita income, less developed financial markets, and less mature political systems. Exotic currency An exotic currency is a term used to describe a currency that is not widely traded or used in international transactions. These currencies are typically from smaller or less developed countries, and may be less liquid or more volatile than major currencies. Examples of exotic currencies are the Brazilian Real (BRL), South African Rand (ZAR), Mexican Peso (MXN). Turkish Lira (TRY), Indian Rupee (INR) and Russian Ruble. Exchange rate An exchange rate is the price at which one currency can be exchanged for another currency. It is the value of one currency in terms of another currency, and is determined by the supply and demand for the two currencies in the foreign exchange market. Economic value added (EVA) Economic value added (EVA) is a measure of a company's economic profit, or the value it creates beyond what shareholders require. A company's EVA is calculated by subtracting its after-tax operating profit from its cost of capital. ECB rate ECB rates are foreign exchange reference rates published by the European Central Bank. Every working day, the bank publishes the exchange rate for European currencies against the euro (EUR). < PREVIOUS NEXT >

Get an overview of financial terms and their definitions. < BACK KNOWLEDGE BASE Grain Glossary Get an overview of financial terms and their definitions. ALL A A B B C C D D E E F F G G H H I I J J K K L L M M N N O O P P Q Q R R S S T T U U V V W W X X Z Z A At The Money (ATM) In finance, an option is at the money if the current market price of its underlying asset equals its strike price. Because the underlying asset cannot be bought or sold at a price other than the current market price, at-the-money options have no intrinsic value. Accounts payable A company's accounts payable is the amount of money it owes to its creditors for goods or services it has received, but has not yet paid for. In the context of accounting, accounts payable is classified as a liability, as it represents a company's obligation to pay off its debts. It is recorded in a company's balance sheet under the category of current liabilities, along with other debts and financial obligations that are due within the next year. Appreciation in Currency A currency appreciation in the currency market refers to an increase in the value of one currency relative to another. Simultaneously, the currency appreciation benefits importers as they have to pay less in domestic currency for imported goods. Alt 21 Alt 21 is a digital financial platform designed to let individuals and businesses hedge currency risks. The company's platform offers customizable forex hedging software including options and forwards with real-time rates for pricing in multiple currencies, enabling banks, credit unions, and corporate treasury departments to automate their forex hedging processes and deliver tailor-made financial services. Actual/360 A day count convention is used for calculating interest accrued on Treasury bills and other money market instruments . Uses actual number of days in a month and 360 days in a year for calculating interest payments. < PREVIOUS NEXT >