Forex Glossary

Forex Terms starting in "C"

Forex Terms starting in "C"

  • Cable →

    A term referring to GBP/USD.

  • Call Option →

    A call option confers the right but not the obligation to buy.

  • Canadian Dollar (CAD) →

    Canada's national currency.

  • Candlestick Chart →

    A type of chart consisting of blocks with vertical lines that resemble the look of candlesticks.

  • Capacity Utilization Rate →

    A measure of how much of the productive capacity a country is using.

  • Capital Account →

    A component of the Current Account that summarizes the flow of investments and loans in and out of a country.

  • Carry →

    The amount credited or debited from an account for holding a currency pair where the components have different underlying interest rates overnight. The magnitude of the carry charge is determined by the size of the interest rate differential. For example, if a trader is long USDJPY there will be a relatively small carry charge since both currencies have a low interest rate. If a trade is long USDZAR there will be a greater cost of carry since the interest rate of the ZAR is significantly higher than that of the USD.

  • Carry Trade →

    An investment strategy whereby the investor borrows from a low-yielding or low-interest currency, and invest in high-yielding or high-interest currency.

  • Cash →

    Often refers to a transaction settled on the day the transaction is agreed upon.

  • Cash and Carry →

    The buying of an asset today and selling a future contract on the asset.

  • Cash Market →

    The market where physical currencies are bought and sold.

  • Cash Settlement →

    The process of settling a futures contract by paying the cash difference between the futures price and cash price instead of delivering the physical currency.

  • CBI Industrial Trends Survey →

    A survey conducted by the Confederation of British Industry that reports overall sentiment in top Manufacturing Executives.

  • CBOE →

    Chicago Board Options Exchange.

  • CBOT or CBT →

    Chicago Board of Trade.

  • Central Bank →

    The bank that is responsible for monetary policies among other things that is needed to create conditions allowing a stable economy.

  • Certificate of Deposit (CD) →

    Certificate of Deposit.

  • CFTC →

    The Commodity Futures Trading Commission.

  • Chancellor of the Exchequer →

    Title of the State office of the UK who is responsible for economic and financial matters of the nation.

  • Channel →

    A range where prices seem to be contained within.

  • Chartist →

    A trader who studies price charts to try and find profitable behavior in financial markets. A chartist is a specific type of practitioner of technical analysis.

  • CIBOR →

    Copenhagen Interbank rate - The rate at which banks lend the Danish Krone.

  • Claimant Count →

    An economic indicator for the United Kingdom that measures unemployment.

  • Closed Position →

    A position that no longer exists. A long position would be closed by offsetting with a short position of the same size and a short position would be closed by offsetting with a long positions of the same size.

  • CME →

    Chicago Mercantile Exchange.

  • Comex →

    Commodity Exchange of New York.

  • Commission →

    A fee whether fixed or variable that a broker or dealer charges per trade.

  • Commodity Currency →

    A commodity currency refers to the currency of countries that depend heavily on the export of certain commodities raw materials for income.

  • Compound Option →

    An option on an option usually with a fixed price and expiration date.

  • Confirmation →

    A document exchanged by counterparts to a transaction that states the terms of said transaction.

  • Consolidation →

    The period when prices are less volatile and are moving sideways.

  • Consumer Confidence →

    A measure of the overall ambiance surrounding the financial conditions within an economy.

  • Consumer Price Index (CPI) →

    A measure of the average price level of a basket of goods and services purchased by the consumers.

  • Contagion →

    The nature of economic crisis to often spread from one market to another market.

  • Continuation →

    A term used to describe that a trend will extend course.

  • Contract →

    An agreement to buy or sell a fixed unit size.

  • Contract Expiration Date →

    The date when an asset must be delivered or accepted to fulfill the obligations of a contract.

  • Contract Month →

    The month when a futures contract becomes deliverable.

  • Convertible Currency →

    A currency that can be freely traded for other currencies without central bank permission.

  • Correction →

    A term used to describe price action during a partial reversal of a trend.

  • Counter Currency →

    The second currency in a stated currency pair.

  • Counterparty →

    An individual or a bank that deals with international financial exchange and is ultimately the guarantor of a contract such as a loan.

  • Counterparty Risks →

    An individual or a bank that deals with international financial exchange and is ultimately the guarantor of a contract such as a loan.

  • Country Risk →

    The risk posed by the potential for a country to intervene or manipulate the value of a currency

  • Coupon →

    Represents the rate of interest on a fixed interest security like a bond.

  • Coupon Value →

    The annual rate of interest on a fixed interest security like a bond.

  • Cover →

    To take out a forward foreign exchange contract

  • Credit Risk →

    The risk that a debtor will not pay an obligation.

  • Cross Pair →

    A currency pair that does not include the USD.

  • Cross Rate →

    The exchange rate of currency pairs that do not include the USD.

  • Currency →

    A form of money used by a country and issued by that country government as a unit of exchange

  • Currency Option →

    A contract that gives either the right or the obligation to buy or sell a currency at a specified price by a specified date

  • Currency Pair →

    The two currencies that comprise a currency pair

  • Currency Risk →

    The risk that changes in the value of a currency may pose

  • Currency Swap →

    Bond which consigns two counter-parties to switch over streams of interest payments in different currencies for an agreed period of time.

  • Current Account →

    A component of Balance of Payments that measures net flow of trade, factor income, and transfer payments.

  • Current Balance →

    The total of all exports minus the total of all imports for a country for a specified period of time

Forex Trading Terms (Alphabetical)