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Investing, Financial, Trading and Crypto Terms - Dictionary (C)

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Investing/Finance/Trading/Crypto Dictionary
Cable Cable is a term used to refer to the exchange rate between the British pound and the US dollar. The term is derived from the days when exchange rates were transmitted via underwater cable.
Call option A call option is a financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (strike price) on or before a certain date (expiration date).
Capital expenditure Capital expenditure refers to funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment. These expenditures are made to improve the company's operations and increase its revenue-generating capacity.
Capital gains tax Capital gains tax is a tax on the profit realized from the sale of a capital asset, such as a stock or real estate, that is above the asset's cost basis. The tax rate for capital gains can vary depending on the type of asset and the length of time it was held.
Cash drag Cash drag refers to the negative impact that holding too much cash can have on a company's returns. When a company holds excess cash, it reduces the return on investment by decreasing the company's earning potential.
Cash flow Cash flow refers to the amount of cash and cash-equivalents coming into and going out of a business. Positive cash flow indicates that a company's liquid assets are increasing, while negative cash flow indicates that they are decreasing.
Chargeable gain A chargeable gain is a term used in the United Kingdom to refer to the profit made on the disposal of an asset that is subject to capital gains tax.
Chartist A chartist is an individual who uses charts and other technical analysis tools to study past market data and make predictions about future price movements in the stock or other financial markets.
Closing price The closing price is the final price at which a security is traded on a given trading day.
Commission Commission refers to a fee charged by a broker or other financial professional for executing a trade or providing other services.
Commodity Commodity refers to a raw material or primary agricultural product that can be bought and sold, such as gold, oil, wheat, or pork bellies.
Compound interest Compound interest is interest that is calculated on the initial principal and also on the accumulated interest of a deposit or loan. This means that interest is earned on interest, leading to the "compounding" effect.
Contango and backwardation Contango and backwardation are terms used to describe the shape of the forward curve for a commodity. In contango, the forward price is higher than the spot price, while in backwardation, the forward price is lower than the spot price.
Contracts for difference Contracts for difference (CFDs) are financial derivatives that allow traders to speculate on the price movement of an underlying asset without owning the asset itself. CFDs allow traders to take both long and short positions, and to trade with leverage.
Convexity Convexity is a measure of the sensitivity of the price of a bond to changes in interest rates. A bond with high convexity will experience a larger change in price for a given change in interest rates than a bond with low convexity.
Cost of carry The cost of carry is the cost of holding an asset, such as a commodity or bond, until a future date. It includes the cost of storage, insurance, and other expenses associated with holding the asset.
Covered call A covered call is a trading strategy in which an investor holds a long position in an asset and sells call options on that same asset in order to generate income from the options premium. This strategy is used to generate income from an asset that is not expected to appreciate significantly in the short term.
CPI The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. It is used to measure inflation.
Credit default swap A credit default swap (CDS) is a financial contract in which the buyer of the CDS makes a series of payments to the seller in exchange for the right to receive a payoff if a specific credit instrument, such as a bond, experiences a credit event, like default.
Credit rating A credit rating is an assessment of the creditworthiness of a borrower, such as an individual, company, or government. Credit rating agencies assign ratings, such as AAA or B, which indicate the likelihood that the borrower will repay their debts as agreed.
Credit spread Credit spread refers to the difference in yield between a corporate bond and a government bond of similar maturity. It is a measure of the risk of default for the corporate bond.
Crest Crest is a computerized settlement system for the London Stock Exchange. It enables the electronic settlement of trades in UK equities and gilts, and is used by a number of European markets.
Crest depositary interest A Crest depositary interest (CDI) is a financial instrument that represents ownership of shares that are held in electronic form in the CREST system. CDIs are traded and settled in the same way as physical shares.
Crystallisation Crystallisation refers to the process of converting an open position in a futures contract into a cash position by offsetting the position with an opposite transaction in the same contract.
Currency appreciation Currency appreciation refers to an increase in the value of a currency in relation to other currencies. It can occur as a result of market forces such as interest rate differentials and changes in political and economic conditions.
Currency depreciation Currency depreciation refers to a decrease in the value of a currency in relation to other currencies. It can occur as a result of market forces such as interest rate differentials and changes in political and economic conditions.
Currency futures Currency futures are financial contracts that obligate the buyer to purchase a specific currency at a future date at a specific exchange rate.
Currency options Currency options are financial contracts that give the holder the right, but not the obligation, to buy or sell a specific currency at a specific exchange rate on or before a certain date.
Currency peg A currency peg is when a country's government or central bank fixes the exchange rate of their currency to another currency or a basket of currencies. It's a way of maintaining stability in the value of its currency.
Current ratio The current ratio is a financial ratio that measures a company's ability to pay its short-term obligations. It is calculated by dividing current assets by current liabilities. A ratio greater than 1 indicates that a company has sufficient current assets to cover its short-term liabilities, while a ratio less than 1 suggests the opposite. It is used as a measure of a company's liquidity and short-term financial health.