General TradingA

Appreciation

An increase in the value of an asset or currency over time. In forex, appreciation refers to a currency strengthening relative to another currency in a pair. Asset appreciation can result from fundamental improvements, favorable macroeconomic conditions, or shifts in market sentiment, and it represents unrealized gains until the position is closed.

Example

“The euro appreciated nearly 5% against the dollar after the ECB signaled a more hawkish monetary policy outlook.”