C
CABLE
A term used in the foreign exchange market for the US Dollar/British Pound rate.
CANADIAN DOLLAR (CAD)
The currency abbreviation or currency symbol for the Canadian dollar (CAD). The Canadian dollar is made up of 100 cents and is often presented with the dollar sign as C$ to allow it to be distinguished from other currencies denominated in dollars, such as the U.S. dollar (USD). CAD is considered to be a benchmark currency, meaning that many central banks across the globe keep Canadian dollars as a reserve currency.
CARRY
The interest cost of financing securities or other financial instruments held.
CASH DELIVERY
Same day settlement.
CASH
Normally refers to an exchange transaction contracted for settlement on the day the deal is struck.
CASH ON DEPOSIT
Cash on Deposit equals the amount of funds deposited in the account, plus or minus the realized closed position P/L and other debits or credits such as rollovers, and commission (if any).
CENTRAL BANK
A bank, which is responsible for controlling a country's or region's monetary policy. The Federal Reserve is the central bank for the United States, the European Central Bank is the central bank of Europe, the Bank of England is the central bank of England and the Bank of Japan is the central bank of Japan.
CENTRAL BANK INTERVENTION
The act by which a central bank or central banks enter the spot foreign exchange market and attempt to influence unbalanced supply and demand forces through the direct purchase (or sale) of foreign exchange.
CHARTIST
An individual who studies graphs and charts of historical data in an attempt to find trends that will help predict the direction and magnitude of a particular investment product.
CHINA RETAIL SALES
Released by the government once a month. This economic indicator is potentially market moving and measures the sale of retail goods over a particular time period.
CLIENT OR CUSTOMER
An FXDD account holder. The Customer can be an Individual, Money Manager, corporate entity, trust account, joint account owner, or any legal entity that has an interest in the value of the account.
CLOSED POSITION
A transaction that is opposite in direction and magnitude to an existing position that has been the effect of realizing a gain or loss.
CME
Chicago Mercantile Exchange
COMMISSION
The fee that a broker may charge clients for dealing on their behalf.
COMMODITY FUTURES TRADING COMMISSION ("CFTC")
A federal agency which regulates commodity futures and options, foreign exchange and swaps in the United States.
CONFIRMATION
An electronic or printed notice that describes all the relevant details of a transaction.
CONSUMER PRICE INDEX
Monthly measure of the change in the prices of a defined basket of consumer goods including food, clothing, and transport. Countries vary in their approach to rents and mortgages.
CONTRACT
An Over the Counter (OTC) agreement conducted with FXDD to buy or sell a specified amount of a particular currency in return for a specified amount of another currency for settlement on a specified Value Date (normally the Spot Date). The contracted amounts are determined by the foreign exchange rate to which the two parties contract.
CONVERSION RATE
The rate for a specific currency pair that is used to convert (or sweep) non-US dollar profits/losses into dollars at the end of a trading day.
CORRESPONDENT BANK
The foreign banks representative who regularly performs services for a bank which has no branch in the relevant center, e.g. to facilitate the transfer of funds.
COUNTER CURRENCY
The second currency in a currency pair. In the Currency Pair EUR/USD, the Counter Currency is the USD.
COUNTERPARTY
The other entity or party with whom the deal is being transacted.
COUNTRY RISK
The risk attached to a transaction by virtue of its association to a particular country. This involves examination of economic, political and geographical factors of a particular country.
COVER
The act of performing a transaction that closes out a position.
CREDIT RISK
The risk that a debtor will not repay.
CROSS CURRENCY CONTRACT
A spot contract to purchase or sell one foreign currency in exchange for another specific foreign currency. The currencies exchanged are not the US Dollar.
CURRENCY
A Foreign Currency or US Dollar.
CURRENCY PAIR
The two currencies in a foreign exchange transaction. EUR/USD is an example of a currency pair.