Stocky

DEFINITION of 'Stocky'

A slang term used by forex traders for the Swedish krona, which has the symbol SEK. The stocky remains separate from the euro, which Sweden has declined to adopt despite being part of the European Union since 1995. Although members of the European Union are required to convert to the euro, Swedish officals have used a loophole in the union rules to avoid this.

BREAKING DOWN 'Stocky'

The Swedish central bank, Sveriges Riksbank, maintains a managed float regime for the exchange rate. The stocky is not pegged to any other currency, but it is often linked to the the euro due to its proximity to other countries who use the euro as their primary currency.

The origins of this term can be attributed to Stockholm, the capital of Sweden. "Stocky" is a shortened form of the capital's name.