The word Currency starts from the alphabet ‘C’ and here we are going to discuss few terms used in Forex market that starts from the same letter ‘C’. As Forex Market is all about exchange of currency, Forex Market Experts like Barry Sendach consider these terms as important. Check out the list of terms given below –
- Cable – It is the term used to describe the exchange of British pound with US dollar.
- Candlestick chart – It’s the chart showing details like daily high, low, closing and opening price. If the close is lower than open, then candlestick is filled in and if the open is lower than close, then the body is left empty.
- Capital Markets – The capital (bonds, stocks etc.) traded in the market, usually for long or medium term investing.
- Carry Trade – It is the investment stage when the trader purchases a higher yielding currency with capital of less profitable one to gain good interest rate differential.
- Central Bank – It is a national level financial organization working independent of government to implement policies for printing money.
- Chartist – A technical analyst who checks for data to reveal potential trends in the market.
- Clearing – Confirmations or settlements done for trade.
- Close a position – Also known as Position squaring. It implies to getting rid of position – Buying back a position or selling it.
- Commission – The fee charged to broker for transactions.
- Confirmation – Verification of documents for completion of trade to know the fee, date, commissions, settlement and price.
- Contagion – Term used to describe range of economic crisis from one market to other.
- Contract – Standard trading agreement for currency exchange in Forex Market.
- Convertible currency – Set of currencies that can be exchanged for other currencies or gold.
- Cost of carry – The cost to sustain some position in the market from interest parity condition to determine forward price.
- Counterparty – The risk involved in financial transaction that may act as obstacle in meeting the contractual terms. Experts like Barry Sendach suggest people with tips to reduce the risk level.
- Cover on a bounce – Recommendation to exit from trade on rise of support level.
- Cover on approach – Recommendation to exit trades for profit on tactic to a support level.
- Credit on checking – Check for credit availability on counterparty to carry out transaction.
- Credit netting – An agreement to avoid continuous credit check
- Cross rate – Currency pairs quoted excluding the domestic currency for exchange.
- Currency Pair – Currency quoted in pairs like EUR/USD – The first is the base currency other is the quote currency.
All the above-mentioned terms are commonly used by traders while exchanging currency. After reading all these forex-terms explained by Barry Sendach, you would easily understand the reports and discussions.
