Futures and Forex Glossary Dictionary C1


A popular slang for exchange rate between US dollar and British Pound. Another word for the British Pound Sterling, originating from the fact that dollars/pound sterling exchange rate used to be transmitted through transatlantic cable in the 1800s. Related Terms: Bank of England (BOE)

Call option

A call option confers on the investor to ‘call in’ or ‘buy’ a futures instrument at a stipulated price within a pre-ordained period. However it is not obligatory for the investor to do so. Related Terms: Buy-Write,

Cambodian Riel (KHR)

Currency of Cambodia. One Cambodian Riel is divided into 100 centimes. Cambodia had no monetary system from 1975 to 1980 under Khmer Rouge Regime. Related Terms: Base Currency, Authorized Forex Dealer

Canadian Dollar (CAD)

Currency of Canada represented by the symbol C$. Each Canadian dollar is made up of 100 cents and is reckoned as a benchmark currency, which means it is kept as reserve currency by other central banks. Related Terms: Base Currency

Canadian Overnight Money Market Rate (CORRA)

Bank of Canada estimate of the rate at which major dealers can arrange financing of securities for a term of one business day. A reference interest rate solely for money market accounts, and also reckoned as the weighted average rate of overnight non-specific collateral repo trades.


A price display chart over a period of time denoting the daily high, low, opening and closing prices of a financial instrument such as currency. Related Terms: Bearish Harami, Bullish Harami

Carry (Interest-Rate Carry)

A foreign exchange currency position carried overnight entailing a cost of income, which depends on the currency pair having different interest rates for the same period.

Carry currencies

Currencies that have high interest rates attributed to them. Example AUD

Carry Grid

A combination of order parameters including open orders, take profits and stop losses representative of a carry trading strategy

Carry Positive

The holding of two offsetting positions by an investor amongst which one position produces a cash inflow that exceeds the obligations of the other. Related Terms: Arbitrage, Basis Risk

Carry trade

Selling a currency with a low interest rate, and using those funds to buy another currency with a higher interest rate yield, taking advantage of substantial interest rate differentials that could occur depending on leverage. However, uncertainty of interest rate is a risk associated with carry trade.

Carrying Broker

A futures commission merchant who is a predominantly larger player in the commodities market and who provides trade clearing services to smaller participants. Related Terms: Associated Person, Broker

Carrying Charge

The difference between the cost of funds to buy a futures instrument and the materialisable yield on that cash futures instrument. Also referred to as ‘carry’ or ‘cost of carry” Related Terms: Carry, Cost of C

Cash commodity

The underlying commodity in a futures contract. Example: Coffee is the cash commodity in a coffee futures contract. Interchangeable with “actual’ and ‘spot’ commodity Related Terms: Spot Commo

Cash Market

The market for cash commodities. In these markets you can buy the physical commodities than just the futures contract. Related Terms: At-the-Market

Cash on Deposit

Funds deposited in a forex trading account by a client. These trading accounts are normally kept with forex brokers.

Cash settlement

Futures and option settlement method whereby on expiry or in exercise of the terms of the contract, the futures / options seller transfers the cash position and not actual material. Example: In coffee futures, the purchaser need not take ownership of coffee beans but only pays the difference between spot price of coffee and the future price. Related Terms: Approved Delivery Facility