Glossary

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There are currently 14 names in this directory beginning with the letter C.
Cable
A slang term in Forex trading for the currency pair GBP/USD (British Pound vs. US Dollar).

Call Option
An agreement that allows a buyer the option to buy a financial asset at a specified price with in a particular period of time. The buyer however is not obligated to purchase the asset.

CCI
CCI stands for Commodity Channel Index. This is a technical trading tool regularly used to measure when a financial instrument has been overbought or oversold.

Centeralization
Any system that is controlled by trusted parties, such as banks or money transmitters. All financial assets other than cryptocurrency have a centralized market.

CFD
CFD stands for Contract for Difference. This is a contract between an investor and an investment instituation. At the end of the contract, the parties involved exchange the monetary difference between the opening and closing prices of the financial instrument involved in the contract.

Commission
A fee paid to the brokerage firm that facilitated a transaction.

Commodities
This refers to raw materials including precious metals, oil, and coffee.

Commodity Pairs
The foreign exchange pairs that are highly correlated to commodity fluctuations in the global financial markets. These three pairs are USD/CAD, AUD/USD, and NZD/USD.

Correlation
A statistical term for establishing a relationship between two or more independent assets.

Counter Currency
A term used in trading Foreign Exchange. When quoting currency pairs, it is the second currency that you compare against the base currency.

CPI
CPI stands for Consumer Price Index. A statistical measurement that examines changes in the purchasing power of a currency and the inflation rate.

Cross Currency Transaction
A transaction that involves two or more currencies being traded at the same time.

Currency
A financial asset that can be traded, often in pairs.

Currency Trading
The exchange of one currency for another currency.