Capital Gains Distribution - A distribution to investment company shareholders from net long-term capital gains realized by a regulated investment company on the sale of portfolio securities.
Capital Losses - Losses resulting from selling at a loss.
Case of Need - The drawer of a bill, and any endorser, may state the name of a party to whom the holder may resort in case of need, i.e. in case the bill is dishonored by non-acceptance or non-payment. Such a party is called the referee in case of need.
Cash Against Documents (CAD) - Indicated invoice amount to be paid by the buyer/importer at sight on presentation of relative commercial documents e.g. bill of lading, insurance certificate, etc.
CBD - Cash before delivery.
CFR - Cost and Freight. See also ‘Incoterms 2000’.
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.
CIA - Cash in Advance.
CIF - Cost, Insurance and Freight.
CIP - Carriage and Insurance Paid To... (named point).
Classifier System - In artificial intelligence, these systems perform a type of machine learning that generates rules from examples.
Clean bill of lading - A claused, or foul bill of lading contains notations or remarks as to defects in the goods and/or packaging. See ‘Bill of lading’ and ‘Clean bill of lading’.
Clean bills - Bills of Exchange (drafts, cheques, etc.) drawn payable overseas and which are not accompanied by commercial documents.
Clone Fund - A smaller version of a retail mutual fund, it is offered as a subaccount in a variable annuity.
Closed Trades - Positions that have been either liquidated or offset.
Closed-End Funds - A mutual fund that does not sell unlimited shares; one with a specific number of outstanding shares.
Clustering - Locating the presence of groups of vectors that are similar in some fashion.
Coefficient - A constant used to multiply another quantity or series; as in 3 xand ax, 3 and a are coefficients ofx.
Coefficient of Determination - R-squared. The proportion of the variation in the data explained by the model.
Coincidence - In Gann's theory, a projected reversal point.
Collecting Bank - In a documentary collection, the bank acting as an agent for the seller’s bank in collecting payment or acceptance of a time draft from the buyer to be forwarded to the seller’s bank (the remitting bank).
Combined Forecast - The weighted average of two or more forecasts.
Commercial Invoice - A document containing a record of the transaction between a seller (exporter) and a buyer (importer), containing information such as a complete listing and description of the goods including prices, discounts and quantities, and the delivery and payment terms.
Commission Agent - A foreign sales representative who is paid a percentage of the sales they generate.
Comparitor - A device of some kind that compares two inputs.
Confidence Factor - A measure of the degree of likelihood that a rule is correct, which may reflect the percentage of times that it has proven to be correct in the past or just a subjective measure of our confidence in its degree of reliability.
Confidence Level - The degree of assurance that a specified failure rate is not exceeded.
Confirmation of documentary credit - If the beneficiary, upon receipt of a documentary credit in their favor, has any doubts as to the standing of the issuing bank or the economic stability of the buyer’s country, they may request their local bank to confirm that credit.
Confirming Bank - In documentary credit transactions, the bank adds its own irrevocable undertaking for payment in addition to that given by the issuing bank.
Congestion Area or Pattern - A series of trading days in which there is no visible progress in price.
Consolidation - A pause that allows participants in a market to reevaluate the market and sets the stage for the next price move.
Consular Invoice - An invoice covering a shipment of goods certified by the consul of the country for which the merchandise is destined.
Contingency Insurance - Insurance coverage taken out by one party to an international transaction to complement and fill in any gaps in the coverage taken out by the counterparty.
Continuation Chart - A chart in which the price scale for the data for the end of a given contract and the data for the beginning of the next contract are merged in order to ease the transition of one contract to the next.
Contract of Sale - This is an agreement between the seller and the buyer.
Conversion Arbitrage - Traders buy and sell two different securities (or synthetic securities), forcing equivalent prices for equivalent securities.
Correction Wave - A wave or cycle of waves moving against the current impulse trend's direction.
Correlation Coefficient - When two random variables X and Y tend to vary together.
Correlogram - A numerical and graphical display of the test statistics of an autocorrelation diagnostic routine.
Cost Basis - The cost of a given share or group of stock shares.
Counter-purchase - The agreement of an exporter to purchase a quantity of unrelated goods or services from a country in exchange for and approximate in value to the goods exported.
Countermove - A price bar showing movement opposite to the direction of the prior time period; a retracement.
Countertrade - Countertrade is typical of trade with East European and less developed countries, which often suffer from a lack of foreign exchange and/or credit facilities.
Cover - Purchasing back a contract sold earlier.
Covered White - Writing a call against a long position in the underlying stock.
Cracked Spreads - The spread between crude oil and its products: heating oil and unleaded gasoline plays a major role in the trading process.
Credit Risk Insurance - An exporter’s insurance against non-payment by the importer.
Credit Spread - The difference in value of two options, where the value of the one sold exceeds the value of the one purchased.
Cross Correlations - The extent to which the revenue streams of individual traders within a single enterprise tend to exhibit similar patterns over time.
Cross rate - In calculating a spot or future price between two currencies, reference to their respective quotations in a third currency determines the cross rate.
CSC - Container service charge.
CTI2 - Market Profile terminology for commercial clearing members, as opposed to CTI1, local floor traders.
Cup and Handle - An accumulation pattern observed on bar charts.
Currency Future - A contract for the future delivery of a commodity, currency or security on a specific date.
Currency Option - The contractually-agreed right to buy (call option) or to sell (put option) a specific amount of a foreign currency at a predetermined price on a specific date (European option) or up to a future date (American option).
Current Ratio - The current assets of a company divided by its current liabilities. Balance-sheet strength indication.
Curve - The continuous image of the unit interval.
Curve-Fitting - Developing complicated rules that map known conditions.
CUSIP - The number assigned by the Committee of Uniform Security Identification Procedure that appears on all securities documents.
Customer Foreign Currency Account (CFCA) - These accounts record overseas currency funds held by the Bank on behalf of a customer.
Customs Broker - Licensed agent or broker whose function is to handle the process of clearing goods through customs for importers.
Customs Deputy - Tax levied by the government on goods crossing the customs border, usually a tax imposed on imports.
Cutoff Frequency - A point where higher frequency cycles will not pass through a filter (e.g., a 10-day SMA will eliminate cycles of 20 days or less).
CWO - Cash with order.
CWT - Hundredweight; unit of measurement.
Cycle - A variation where a point of observation returns to its origin.

TRADING TIPS & TUTORIALS

TRADING TIPS & TUTORIALS

TRADING TIPS & TUTORIALS

TRADING TIPS & TUTORIALS

ABC of Trading

FULL TRADING GLOSSARY & INDEXES