Futures and Forex Glossary Dictionary C3
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The process of squaring up a forex trade position by liquidating the buy or sell order as the case may be.
Closing Market RateThe Market price of a currency at the end of trading hours on any trading day.
Closing RangeThe high and low prices of each currency at the closing hours of each trading day. Also referred to as the ‘range’ Related Terms:Range, Settlement Pri
Cognitive BiasIrrationally believing that history will repeat itself as for example believing that the market will rebound since it has already taken a beating, or believing that a long bull market will be followed by a bear market. Cognitive bias leads to error in statistical judgement. Related Terms: Attribute Bias, Sample Selection Bias
CommissionCompensation or fee charged from clients by forex brokers in lieu of conducting forex deals on their behalf. Related Terms: Broker
Commodities ExchangesFutures and options trading exchange for commodities such as maize, coffee, cotton, oil, etc. Examples: New York Mercantile Exchange and the Chicago Board of Trade.
Commodity Exchange Act (CEA)A US Government Federal Act passed in 1936, which replaced the Grain Futures Act of 1922. The CEA stipulates the regulatory framework for all commodities and futures trading, and further requires all such activity to be routed through organized exchanges.
Commodity Futures Trading Commission (CFTC)Regulatory agency of the US Government in the domain of commodity futures trading.
Commodity PoolAkin to a mutual fund, a commodity pool is an investor fund that is deployed in futures and commodity option trading. Contribution to the fund is made by individual investors that face risks only to the extent of their contribution to the fund. Related Terms: Commodity Pool Operator (CPO)
Commodity Pool Operator (CPO)Individuals or entities responsible for conducting the trading activities of a commodity pool. Related Terms: Commodity Pool, Commodity ETF
Commodity Trading Advisor (CTA)Individual or entity registered under the Commodity Exchange Act with the Commodity Futures Trading Commission and who do the specialized job of advising people on options and futures trading. Related Terms: Commodity Exchange Act
ConfirmationCorroboration of a market trend or a turning point as substantiated by at least two indices.
Confirmation StatementIssue of a written document following the initiation of a trade, giving such details as date of trade, price, trade size, commission payable and cumulative funds involved.
Constant CurrenciesAn exchange rate that remains unaffected by currency rate fluctuations. Related Terms: Currency, Exchange Rate
Consumer Price Index (CPI)Measure of the changes in the cost of living determined on a monthly basis. It is an important economic indicator.
ContangoThe price of a futures contract in succeeding delivery months being higher than spot prices. Contango is the opposite of backwardation.