Cable
The nickname used for the GBPUSD currency pair and the British Pound. The name was derived from the transatlantic telecommunication cable between London and New York.
Cabo Verde Escudo (CVE)
The alphabetic code which represents the national currency of Cabo Verde; the Cabo Verde Escudo. “CV” is the country’s code, and “E” stands for “Escudo”. The denomination of the Cabo Verde Escudo is 100 Escudos.
Caixin Manufacturing PMI
A monthly survey based on responses to questionnaires sent to around 500 purchasing managers from private and state-owned manufacturers in mainland China (excluding Hong Kong SAR, Macao SAR and Taiwan). A reading above 50 indicates increase in demand compared to the previous month.
Call Option
A contract that entitles but does not oblige the owner to buy a financial instrument at a specified rate before the expiration date.
Camarilla Equation
A method of pivot point calculation developed by Nick Stott in 1989. The formulas yield the pivot point and four potential support and resistance levels based on the High, Low and Close prices of the previous session:
R4 = Close + (High – Low) * 1.1 / 2
R3 = Close + (High – Low) * 1.1 / 4
R2 = Close + (High – Low) * 1.1 / 6
R1 = Close + (High – Low) * 1.1 / 12"
PP = (High + Low + Close) /3
S1 = Close - (High – Low) * 1.1 / 12
S2= Close - (High – Low) * 1.1 / 6
S3 = Close - (High – Low) * 1.1 / 4
S4 = Close - (High – Low) * 1.1 / 2
Canadian Dollar (CAD)
The alphabetic code which represents the national currency of Canada; the Canadian Dollar. “CA” is the country’s code, and “D” stands for “Dollar”. The denomination of the Canadian Dollar is 100 cents.
Candidate Block
A temporary block created that a node is trying to mine. If successful, the miner will receive the block reward, and the block will be added to the blockchain.
Candlestick Chart
"A price charting technique attributed to Honma Munehisa, a rice market trader in 17th century Japan. He believed that candlesticks reflect the market psychology and the investors’ emotions, which are essential in forecasting the next price move.
The candlesticks display the Open, High, Low, and Close price in a pictorial way. The area between the Open and Close price is known as the body or real body of the candlestick. Its color, black or white, is strictly dependent on the relation between the Open and the Close price. The crowd psychology is revealed at a glance by the color of the body. A white body is bullish meaning that the buyers are in control and the sentiment is positive.
Similarly, a black body is bearish meaning that the sellers are in control and the sentiment is negative. A white body simply means that the session closed higher than the Open price. Similarly, a black body means that the session closed lower than the Open price. The price range of the specific session is indicated by the vertical line that runs through the body. The highest price reached during the session is known as the High price, whereas the lowest price reached is the Low price. In the 1980s, Steve Nison introduced the Japanese Candlesticks to the West through his book Japanese Candlesticks Charting Techniques which revolutionized chart analysis."
Capacity Utilization
A monthly report that indicates the percentage of a nation's manufacturing capacity currently in use. A high reading is good for the currency whereas a low reading is negative.
Capital Expenditure
Money spent by an organization to acquire, maintain, improve or upgrade fixed assets such as land, buildings and equipment.
Capital Gains
Profit made as a result of selling a capital asset like a property or an investment at a higher price than purchased.
Capital Loss
Loss made as a result of selling a capital asset like a property or an investment at a lower price than purchased.
Capitulation
When a large portion of investors/traders sell their assets due to fear that the price will not recover in the near future. This tends to be experienced during extended declines and panic selling.
Carbon Credit
A tradable permit that allows a country or a company to emit one ton of CO2 or equivalent of other greenhouse gasses. Any surplus in gas may be sold for profit.
Carry-over Charge
The fee incurred for the storage of physical commodities.
Carry Trade
Borrowing a currency at a low-interest rate and investing in a currency that yields higher interest.
Cash Flow
The total amount of cash a company receives and spends during a specific period.
Cash Market (Spot Markets)
A market where transactions and delivery of assets are settled immediately after the trade.
Cash Rate
A monthly (except January) report issued by the Reserve Bank of Australia that shows the interest rate that Central Banks charge commercial banks for loans.
Cash Settlement
A method in certain derivative contracts where the terms are fulfilled by cash payment instead of a physical delivery of the underlying asset.
Cayman Islands Dollar (KYD)
The alphabetic code which represents the national currency of the Cayman Islands; the Cayman Islands Dollar. “KY” is the country’s code, and “D” stands for “Dollar”. The denomination of the Cayman Islands Dollar is 100 cents.
CB Consumer Confidence
A monthly report released by the Conference Board Inc. in the Unites States that measures the consumer attitudes towards business conditions, economic activity and employment.
Centered Moving Average
A moving average method, used in cycle analysis, which places more emphasis on the center/middle of the period.
Central Bank
An independent financial institution/authority that is responsible for a nation's monetary policy, regulates the commercial banking system, and provides financial services and research. The goal of the Central Bank is to ensure the nation's currency is attractive for international trade, keep employment at high levels, set interest rates and prevent inflation.
Central Bank Intervention
The Central Bank may sometimes intervene in the foreign exchange market by selling or buying its currency when the actual exchange rate is overvalued, thus jeopardizing its competitiveness.
Alternatively, if the exchange rate is undervalued, it leads to unsustainable growth and inflation. Additional reasons include adequate liquidity, accumulation of reserves, and controlled exchange rate volatility.
Certificate of Deposit (CD)
A certificate of a low-risk investment with a fixed interest rate and maturity. Usually, offered by banks where the client agrees to keep an amount of funds in an account for a fixed period of time in return for a higher interest compared to a savings account.
CFA Franc BCEAO (XOF)
The alphabetic code which represents the official currency of West African countries: Benin, Burkina Faso, Cote D'Ivoire, Guinea-Bissau, Mali, The Niger, Senegal and Togo; the West African CFA Franc. “XO” is the countries' code, and “F” stands for "Franc". The denomination of the West African CFA Franc is 100 centimes.
CFA Franc BEAC (XAF)
The alphabetic code which represents the official currency of the six independent states of Central Africa: Cameroon, The Central African Republic, Chad, Republic of Congo, Equatorial Guinea and Gabon; the CFA Franc. “XA” is the countries' code, and “F” stands for "Franc". The denomination of the CFA Franc is 100 francs.
CFP Franc (XPF)
The alphabetic code which represents the official currency of French Polynesia, New Caledonia, Wallis and Futuna; the CFP Franc. “XP” is the countries’ code, and “F” stands for "Franc". The denomination of the CFP Franc is 100 francs.
Chaikin Oscillator
A momentum oscillator developed by Marc Chaikin. It displays the difference between the 3 and 10-day EMA of the Accumulation/Distribution indicator. A cross above zero is considered a potential Buy signal where a cross below the zero-line is a potential Sell signal.
Channels
A technical tool used to analyse and forecast future price moves based on historical and current data. It consists of two parallel lines, basic and return/channel line, that act as potential support and resistance levels. When the price reaches the lower line, a rally to the upper parallel line is expected. Hence, a potential Buy order may be in place.
Similarly, when the price reaches the upper parallel line a decline in price is expected to follow with a potential Sell trade in place. When the price breaks out of the channel, it is expected to move at least a distance equal to the width of the channel.
Chart
It displays historical and current prices of a financial instrument. Popular chart types include the Japanese Candlesticks, the Bar and the Line chart.
Chartist
A trader whose main tool used for analysis and forecasting is the price chart and chart patterns.
Chicago Board of Trade (CBOT)
Founded in 1848, it is the first grain futures exchange in the United States which eventually became one of the largest futures markets in the world. In 2007, CBOT merged with CME Group with CBOT bringing a suite of interest rates, agricultural and equity index products.
Chicago Board Options Exchange (CBOE)
Founded in 1973 by CBOT, it is the first exchange to list standardized, exchange-traded stock options. CBOE offers trading across a diverse range of products, including options, futures, US and European equities, exchange-traded products, global FX, and multi-asset volatility products.
Chicago Mercantile Exchange (CME)
One of the largest futures and options exchanges.
Chicago PMI
A monthly survey released by ISM-Chicago, Inc., where 200 purchasing managers are asked to give their view about the relative level of business conditions. The respondents share their opinion about employment, production, new orders, prices, supplier deliveries, and inventories. A reading above 50 is good for the economy where a reading below 50 indicates contraction.
Chilean Peso (CLP)
The alphabetic code which represents the national currency of Chile; the Chilean Peso. “CL” is the country’s code, and “P” stands for “Peso”. The denomination of the Chilean Peso is 100 centavos.
Chinese Yuan Renminbi (CNY)
The alphabetic code which represents the national currency of the People’s Republic of China; the Chinese Yuan Renminbi. “CN” is the country’s code, and “Y” stands for “Yuan”. The denomination of the Chinese Yuan Renminbi is 10 jiao and 100 fen.
Choppy Market
A term used to describe a market where prices move up and down without following any specific trend.
Cipher
A tool used to encrypt a message or decrypt it back to the original. This process typically involoves the use of a combination of cryptographic keys (public, private), which determines whether a symmetric or asymmetric cipher algorithm will be used.
Circulating Supply
The global confirmed quantity of cryptocurrency coins or tokens that are publicly available and circulating in the market.
Claimant Count - UK
An important economic indicator that measures the number of people claiming unemployment benefits in the UK. It is published on a monthly basis by the UK's Office of National Statistics.
Cleared Funds
Funds available for immediate use.
Clearing
The process of trade settlement. It is the effective time when the financial instrument and the funds are transferred between the buyer and the seller.
Client Terminal
A section of the MT4 trading platform where traders have the option to receive incoming prices, place and manage orders, perform technical analysis, code, backtest and optimize expert advisors, and develop indicators and scripts.
Closed Position
Indicates a completed transaction, regardless of profit or loss.
Closing Market Rate
The last price of an asset traded during a trading day.
Closing Price
The last traded price during a specific timeframe.
CME Group
The world's largest derivatives exchange based in the United States of America.
Collateral
An asset that serves as a guarantee for the lender in case the borrower fails to repay his loan.
Colombian Peso (COP)
The alphabetic code which represents the national currency of Colombia; the Colombian Peso. “CO” is the country’s code, and “P” stands for “Peso”. The denomination of the Colombian Peso is 100 pesos.
Commission
A fee incurred by the trader for the transactions made via a brokerage.
Commodities Futures Trading Commission (CFTC)
An independent regulatory body in the United States of America that regulates the US derivative markets which consist of futures, options, swaps, etc. It was created in the year 1974.
Commodity
A financial instrument either of natural resource or agricultural product. It is an alternative financial instrument to diversify an investment portfolio.
Commodity Block Currency
Currency of a country that has a strong correlation with a specific commodity. For example, the Australian Dollar has a strong correlation with iron-ore, and the Canadian Dollar has a strong correlation with crude oil.
Commodity Channel Index (CCI)
An unbounded oscillator developed by Donad Lambert. It displays the normalised difference between the typical and average price. Trading signals are usually derived when the indicator crosses a certain threshold, typically -100 and +100. However, these thresholds can be adjusted to compensate for volatility.
Commodity Exchange (COMEX)
A legal entity that enforces rules and procedures for trading commodity contracts. Since commodities are part of a centralised market, it also refers to the physical centre where trading occurs.
Comorian Franc (KMF)
The alphabetic code which represents the national currency of Comoros; the Comorian Franc. “KM” is the country’s code, and “F” stands for “Franc”. The denomination of the Comorian Franc was 100 centime.
Concealing Swallow
"The Concealing Swallow is a four-line Japanese candlestick pattern which is indicative of a bearish reversal.
First, a black marubozu candle in a downtrend is formed, followed by a second black marubozu candle which opens within the prior candle's body and closes below the prior closing price.
The third candle has a smaller body which gaps below the prior closing price to form a new low, but also has a long upper shadow that extends into the previous body. The fourth candle is a long black candle that engulfs the third candles range, (body and shadow included) thus recording a new low."
Confirmation
A method in technical analysis to establish the reliability of a trading setup using the price.
For example, a breakout to the upside on a long bullish candlestick will be more reliable compared to a Doji.
Congolese Franc (CDF)
The alphabetic code which represents the national currency of the Democratic Republic of Congo, the Congolese Franc. “CD” is the country’s code, and “F” stands for “Franc”. The denomination of the Congolese Franc is 100 centimes.
Consumer Price Index (CPI)
An economic indicator that measures the average price change of a basket of consumer goods and services. It is a tool that is used to identify periods of inflation.
Continuing Jobless Claims
An economic report that states the number of unemployed individuals that are receiving unemployment benefits. An increase in numbers may have a negative effect on the US Dollar, while a decrease is considered positive.
Contract for Difference (CFD)
A financial derivative that reflects the prices of the underlying asset. A CFD instrument is a contract (or agreement) between the broker and the trader to pay the difference between the Open and the Close price of the trade.
This allows the trader to open both a Buy and a Sell trade as the CFD is based on the speculation of whether the trader believes the price of the underlying instrument will rise or fall.
Contract Month
The expiry date of a future contract.
Contract Months Code
Defined by the CME group as follows:
January
February
March
April
May
June
July
August
September
October
November
December
Contrarian Trading
An investment style based on the belief that if the majority of the market participants are in agreement regarding the direction of the market, then they are probably wrong. For example, a contrarian would buy when the majority of the traders/investors are short and sell when they are long.
Control Points
A method or type of modeling when backtesting an expert advisor on the MT4 platform. It is a crude estimate of expert advisors backtesting based on the nearest timeframe.
Core Consumer Price Index
An economic indicator, released monthly by the Bureau of Labor Statistics, which measures the average price change of a basket of consumer goods and services, excluding food and energy. It is a tool that is used to identify periods of inflation. A high figure is good for the currency, while a low figure is bad for the currency.
Core Durable Goods Orders
An economic report which measures the change of overall value of new orders of manufacturing goods that have a minimum expected useful life of three years, excluding transportation equipment. It is an important economic indicator for investors and economic policy makers.
Core Personal Consumption Expenditures
A monthly economic report, issued by the Bureau of Economic Analysis, which measures the prices paid by consumers for durable goods, products and services, excluding food and energy. A high figure is good for the currency, while a low figure is bad for the currency.
Core Retail Sales
A monthly economic report, issued by the US Census Bureau, which measures the change in retail spending, excluding automobiles.
Correction (Retracement)
A term used to refer to a temporary price move in the opposite direction only to resume in the direction of the trend.
Corrective Wave
Price move against the prevailing trend. For example, in Elliott Wave Theory, waves 2, 4 and A-B-C.
Costa Rica Colon (CRC)
The alphabetic code which represents the national currency of Costa Rica; the Costa Rica Colon. “CR” is the country’s code, and “C” stands for “Colon”. The denomination of the Costa Rica Colon is 100 centimos.
Cost of Living Index
An economic index used to compare the cost of living in different countries, estimating the costs of basic necessities such as groceries, healthcare, housing, and others.
Counterattack Lines
In trading, "counterattack lines" refer to a candlestick pattern that indicates a potential reversal in market direction. This pattern occurs when a long bullish (green) candle is followed by a long bearish (red) candle that completely engulfs the previous bullish candle. This suggests that bears have gained control and are pushing prices lower, and that a potential trend reversal may be imminent.
Counterattack lines are considered to be a strong reversal pattern, and traders often use them as a signal to exit long positions or to initiate short positions. However, like all trading patterns, it's important to consider other technical and fundamental indicators before making trading decisions based solely on counterattack lines.
Counter Currency
The second currency in a pair. Also, known as the quote currency.
Coupon Rate
The annual interest that an investor may receive as income for fixed-income securities, such as bonds.
Cover
A buy order used to close an existing sell (short) position.
Cross Rate
A foreign exchange rate between two currencies that do not involve the US Dollar.
Crude Oil
Crude oil is a natural unrefined petroleum found in liquid form in geological formations beneath the earths’ surface. Its major components are hydrocarbons, organic compound as well as metals. Crude oil can be further refined into various forms of fuel.
Crude Oil Inventories
Crude oil inventory which is released weekly by the Energy Information Administration (EIA). It measures the change in crude oil barrels, including those held at refineries, pipelines, and lease tanks and on transit.
Cryptocurrency
A digital currency designed to work as a medium of exchange, operating independently of the traditional banking system. Cryptocurrency transactions are stored on a distributed, decentralized general ledger known as a blockchain.
Crypto Wallet
An online wallet that serves as a means of accessing one's cryptocurencies and tokens on the blockchain. Contratry to traditional wallets they do not store currencies per se, but rather pairs of digital keys (public and private). The public key is needed to generate wallet addresses to receive payments. On the other hand, private keys are used not only to send cryptocurrencies, but also for the creation of digital signatures and transaction verification. There are three main types: software, hardware and paper wallets.
Cuban Peso Convertible (CUC)
The alphabetic code which represents the national currency of Cuba; the Cuban Peso Convertible. “CU” is the country’s code, and “C” stands for “Convertible Peso”. The denomination of the Cuban Peso Convertible is 100 centavos.
Currency
A currency is a monetary unit in paper, metal or digital form, used as a medium of exchange.
Currency Appreciation
When the value of a specific currency increases against another currency.
Currency Futures
An agreement whereby an asset is agreed to be bought or sold at a predetermined price and date in the future.
Currency Pair
A combination of two currencies that forms a tradable pair. For example, Euro and the US Dollar would form the EURUSD currency pair.
Currency Peg
A government policy set to fix (peg) the local currency exchange rate to that of another currency.
Current Account
A country’s net flow of imports and exports of goods and services, as well as any cross-border transactions with other countries. A surplus in the current account is considered good for the country’s currency.
Cycle Lines
A technical analysis tool that plots equidistant vertical lines on the price chart to forecast future turning points (cycles).
Cyclic Principles
Cycle Theory is based on the following principles:
Summation – Price movement is the sum of all active cycles.
Harmonicity – Neighboring (cycle) waves are related by the number 2 (i.e., double or half)
Synchronicity – Cycle waves of different lengths tend to bottom at the same time.
Proportionality – Cycles with longer time spans (periods) should have proportionally higher amplitudes.
Variation – states that the previous principles are just tendencies as opposed to hard rules.
Nominality – A set of harmonically related cycles affect all markets.
Cyprus Securities and Exchange Commission (CySEC)
CySEC is the financial regulatory authority of Cyprus, governing the local investment services sector and supervising market transactions in transferable securities.
Czech Koruna (CZK)
The alphabetic code which represents the national currency of the Czech Republic; the Czech Koruna. “CZ” is the country’s code, and “K” stands for “Koruna”. The denomination of the Czech Koruna is 100 CZK.