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Cable Common terminology for the British Pound against the US dollar exchange rate.
Call Option A contract that gives the buyer of the option the right but not the obligation to take delivery of the underlying security at a specific price within a certain time. American options can be exercised at any time up to the expiration date while European Options can be exercised only on the expiration date.
Call rate The primary or the base size of credit provided by broker. The actual size of the credit is usually defined as a premium/discount expressed as percentages or basis points to the primary size depending on the size and the type of the credit.
Candlestick Chart A type of chart which shows the price movements of a market asset over a certain period of time. The high and low are plotted as a single line and are referred to as shadows. The price range between the open and the close is plotted as a narrow rectangle and is referred to as the body. If the close is above the open, the body is white. If the close is below the open, the body is black.
Capital Gains The amount by which the ask price of a security exceeds the bid price.
Capital Markets Markets for medium and long term investment.
Cash Flow Reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and extraordinary charges to reserves, which are bookkeeping deductions and not paid out in actual dollars and cents.
Chaikin Oscillator Oscillator created by subtracting a 10-day from a 3-day EMA of accumulation/distribution line.
Channel In charting, a price channel contains prices throughout a trend. There are three basic ways to draw channels: parallel, rounded and channels that connect lows (bear trend) or highs (bull trend).
Chaos Theory Describes the behavior of nonlinear systems. A subset of nonlinear dynamics analysis, chaos theory is a branch of mathematics focusing on irregular and complex behavior that has an underlying order. In the stock market, chaos theory seeks to forecast the future path of stock prices, including sudden changes that occur during periods of intense market activity.
Chart A display or picture of a security that plots price and/or volume .
Chartist An individual who studies graphs and charts of historic data to find trends and predict trend reversals which include the observance of certain patterns and characteristics of the charts.
Clearing house Established by exchanges to facilitate transfer of securities resulting from trades. For options and futures contracts, the clearinghouse may interpose itself as a middleman between two traders.
Close The performance of a reverse operation for an already open position. The Short position is closed by buying while the Long position is closed by selling.
Closed end (mutual) fund A closed-end mutual fund sells a limited number of shares, which usually trade on a stock exchange. Shares of closed-end funds routinely trade at a discount or premium to NAV.
Closed Position The net zero position relative to a certain currency or an instrument.
Closed Trades Positions that have been either liquidated or offset.
Close a Position / Position Squaring To eliminate an investment from one's portfolio by either buying back a short position or selling a long position.
Closing Price At the end of a trading session, the price of the final trade in a security.
Cold calling A system of placing calls to people on a list taken from the telephone book or some other source. The caller is phoning people they don't know in the hopes of making a sale.
Commission A fee charged by a broker for buying or selling securities on behalf of a client.
Commission Broker A broker on the floor of an exchange who executes the public's orders for the purchase or sale of securities or commodities.
Commodity A commodity is good that is generally a primary good used in manufacturing such as timber, cotton, wool and copper.
Commodity Channel Index Developed by Donald Lambert, the CCI measures the variation of an instrument's price from its mean.
Common Stock Securities that represent an ownership interest in a corporation. Shareholders have the right to vote on major decisions. Holders of common stock shares are last in line in terms of their claim to dividends, assets, etc.
Complete Portfolio The entire portfolio, including risky and risk-free assets.
Confirmation The written or oral statement by a broker that follows any "trade" in the securities markets. Confirmation is issued immediately after a trade is executed. It spells out settlement date, terms, commission, etc.
Consolidation Consolidation (sideways trend) is usually referred to as a series of trading days in which no significant change in price occurs.
Consumer Price Index The gauge of US inflation.
Contracts for Difference (CFD's) CFD's allow you to take positions on share prices without needing to buy and sell shares themselves.
Contrarian An investor who does the opposite of what most investors are doing at any particular time. There are two possible reasons this strategy might work. The first is a mean-reversion argument; that is, if the asset has deviated from its usual level, it should eventually return to that usual level. The second reason has to do with overreaction. Investors might have overreacted to bad news sending the asset price lower than it should be.
Convertible Currency A currency that can be freely exchanged for another currency (and or gold) without special authorization from the central bank.
Correction Any price reaction within the market leading to an adjustment by as much as one-third to two-thirds of the previous gain.
Correction Wave A wave or cycle of waves moving against the current impulse trend's direction.
Correlation Coefficient Degree to which two series of numbers plot as a straight line. A correlation coefficient of 1 (or -1) indicates that the two series of numbers plot exactly along a straight line.
Country Risk General level of political, financial, and economic uncertainty in a country.
Credit Risk A measure of a bond issuer's ability to repay its principal and interest as promised.
Cross Hedge Hedging a cash position in one commodity or financial instrument by initiating a position in a futures contract for a different but related commodity or instrument.
Cross Rate The price of one foreign currency expressed in relation to another foreign currency other than the U.S. dollar.
Cumulative Volume Index The Cumulative Volume Index uses market momentum to illustrate money flows in and out of the market. It is calculated by subtracting the volume of declining stocks from the volume of advancing stocks and adding this resulting value to a running total.
Cup With Handle A bullish chart pattern that marks a consolidation period followed by a breakout. The "cup" part of the pattern resembles a rounding bottom, and is followed by a "handle" that acts as a final consolidation before a break.
Currency Risk The risk of an investments value changing because of currency exchange rates.
Currency Selection Asset allocation in which the investor chooses among investments denominated in different currencies.
Currency Swap The simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Current Account Net flow of goods, services, and unilateral transactions (gifts) between countries. A country's balance of payments includes current account and capital account.
Current Ratio The current assets of a company divided by its current liabilities. Indicator of short-term debt-paying ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company.

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