Cable: Trader slang for the Sterling/US Dollar exchange rate because the rate was originally transmitted via a transatlantic cable starting in the mid 1800's.
Candlestick Chart: A chart that shows the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area is not shaded.
Cash Market: The market in the actual financial instrument on which a futures or options contract is based.
Central Bank: A governmental organization that manages a country's monetary policy. The US central bank is the Federal Reserve. The German central bank is the Bundesbank.
Chartist: An individual who uses charts and graphs to interpret historical data in order to find trends and predict future movements. Also known as a Technical Trader.
Cleared Funds: Funds that are freely available, sent in to settle a trade.
Closed Position: Exposures in foreign currencies that no longer exist. The process to close a position is to sell or buy a certain amount of currency to offset an equal amount of the open position, thereby 'squaring' the position.
Clearing: The process of settling a trade.
Contagion: The tendency of an economic crisis to spread from one market to another.
Collateral: Something given to secure a loan or as an assurance of performance.
Commission: A transaction fee charged by a broker.
Confirmation: A document exchanged by counterparts to a business deal that states the terms of said transaction.
Contract: The standard unit of trading.
Counter Currency: The second listed currency in a Currency Pair.
Counterparty: A participant in a financial transaction.
Country Risk: Risk associated with a cross-border transaction, including but not limited to legal and political conditions.
Cross Currency Pairs or Cross Rate: A foreign exchange transaction in which one foreign currency is traded against a second foreign currency.
Currency symbols:
AUD - Australian Dollar
CAD - Canadian Dollar
EUR - Euro
JPY - Japanese Yen
GBP - British Pound
CHF - Swiss Franc
Currency: Any form of money issued by a government or central bank and used as legal tender and a basis for trade.
Currency Pair: The two currencies that make up a foreign exchange rate.
Currency Risk: The probability of an unfavorable change in exchange rates.
Disclimer: This website is for informational purposes only and is not intended to provide
specific commercial, financial, investment, accounting, tax, or legal advice.
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