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C

Cable 

GBP/USD currency pair

 

CAC

CAC40 is the major stock index in France. It is a weighted index comprising of 40 companies based on market capitalization. 

 

Capital Adequacy Ratio

It is a measure of a bank's ability to absorb losses. 

 

CBOT = Chicago Board of Trade

The world's oldest futures and options exchange. 

 

CDO = Collateralized Debt Obligation

An investment-grade security backed by a pool of bonds , loans and other assets. 

 

CDS = Credit Default Swap

Insurance against a borrower defaulting on a loan. 

 

Channel

In charting, a price channel contains prices throughout a trend. There are 3 basic ways to draw channels: parallel, rounded and channels that connect lows or highs. 

 

Classical Enocomics

One of the oldest theories that imply free markets and competition will provide a healthy business cycle. They believe that government intervention should be minimal, and markets should operate independently without the intervention of governments. 

 

Clearing House

A firm that guarantees the performance of the parties in an exchange traded derivatives transaction. 

 

CLO = Collateral Loan Obligation

It is a SPC which is similar to CMO's, however CLO's are securitised payments formed on a variety of different tranches. 

 

CME = Chicago Mercantile Exchange

One of the major exchanges in the world. 

 

CFTC = Commodity Futures Trading Commission

A commission that oversees the commodity exchanges in the US. 

 

Comparative Relative Strength

It compares the strength of a particular stock relative to its competitors, its industry or the whole stock market. 

 

Completeness 

A market in which all contingent claims can be replicated is said to be complete. In a complete market an option has a unique price, which can be determined by finding the cost of setting up and maintaining, its replicating portfolio. In a complete market there are no possibilities of making a risk-free profit in excess of the risk-free interest rate, known as arbitrage opportunities. 

 

Congestion Phase

a phase that follows an advance or decline in which prices trade within a narrow range. It means a trendless period. 

 

Consolidation

A pause to refresh after a strong move. 

 

Contango 

Where futures contracts with nearer expirations have a lower price than those with expirations further away. 

 

Convertible Bond

A convertible note is a bond that the holder can convert into shares of common stock in the issuing company or cash of equal value. 

 

Corporate Bond = A bond issue by a corporation to raise money in order to expand its business. 

 

Cost of Carry

The storage costs plus the costs of financing an asset minus the income earned on the assets. 

 

Coupon

The interest rate associated with a bond. 

 

CPI = Consumer Price Index

It measures the changes in the price level of consumer goods and services purchased by households. 

 

Credit Rating 

Evaluation of the credit worthiness of a debtor by a rating agency. 

 

Currency Peg

A country fies the value of its currency in relation to another. It can be used to prevent inflation or boost trade competitiveness. 

 

Curve Flattening

Shorter term yields go up more than longer term yields. This flatten the upward sloping yield curve. 

 

Curve Steepening

Shorter term yields do not go up as much as longer term yields. This causes the upward sloping yield curve to steepen. 

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