Web Trader MT5
In financial markets, a deal is a closed transaction; the point at which buyer and seller have settled on price and quantity and the transaction is binding. It sounds simple, and it is, but the word carries real legal weight.
When a deal is struck there is a commitment between the two sides. No need to revisit it just because the market shifted a few seconds later. This occurs rapidly in the over-the-counter markets, especially in the foreign exchange market.
A market-maker quotes a price, the opposite party accepts and that’s all; no exchange, no order book, no cooling-off period. Only two parties, a mutually agreed rate, and a settled trade.
The word’s casualness conceals its finality, which is one reason dealing rooms take it seriously. Saying “deal” does not mean that one is interested in the deal or that they have opened the doors for negotiation. It’s a commitment.
Example: A corporate treasurer calls the FX desk needing to sell $5 million and buy sterling. The dealer quotes 1.2650. The treasurer says “deal.” This one word locks in the rate. Whether cable has risen to 1.2665 in half a minute, the business is done and both parties are aware of it.
