All Forex Terms Starting With C & D

C

Cable — this is a nick name for the GBP/USD currency pair. Cable is one of the heavily traded instruments and is also considered one of the fastest pairs. It is also called the ‘Wild beast’ or the ‘Wild Horse’.

CAD: Canadian dollar

Candlestick: This is bar on the historical price chart that displays the pair’s high, low, open, and close price for a specified period of time. Candlesticks are also known as “Candles”.

Carry Trade — holding a position overnight demands certain calculations to adjust the central banks interest rates differences on the volume of the funds under possession. When you hold a position overnight, you are bound to either pay or earn this Interest, depending on the nature of your position. The interest differences are calculated for the number of nights you are holding the position while taking each day into account but on Wednesday nights, the interests are calculated not for just one, but for three days in advance. This practice is used by the active traders to take positions just one minute before twelve midnight and closing it soon thereafter, so as to earn the interest equivalent to three days. This is done on the pairs where the interest rates of the currencies are widely different to each other.

Chart: A visual representation of the historical rates in the form of lines.

Charting application: this is software provided by the broker to show you the multiple charts on multiple time- frames of your choice along with all the technical indicators.

Chunnel: This is the Nick name for the currency pair EURGBP.

Commission — Commissions means percentage of the traded volume that the broker charges to you in lieu of his services rendered. This is calculated and deducted from your account as soon as you open the position and it mainly depends on the number of lots bought and the currency pair traded. This is additional to the spread that they charge on each position. However, the practice of charging commission has diminished with the increase in competition among brokers and the majority of brokers now survive only on the spreads.

Cross Rates: Cross rate is the currency pair without the United States dollar like GBP/JPY. The currency pairs including Euro (EUR/GBP) are usually called as Euro crosses. The rest of the currency pairs also make crosses with each other also known as Cross.

Currency pair: Currency pair is a quotation of two currencies against each other, usually written as Base currency/ Quote currency. i.e. EUR/USD would mean a currency pair with two currencies European Euros and United States dollars. It is the same pair that you have to either buy or sell at the price showing against it. A currency pair is also called a pair or an Instrument.

Forex Major Currency Pairs

D

Day trading: A style of trading where the aim of the trader is to close the trades the same day or the same session, irrespective of whether the position is in profits or a loss.

Demo account: A practice account with virtual money designed for the beginners to practice their basics and test their strategies.

Deviation: The difference in the actual close price to the expected close price.

Dollar: Currency of United States of America

Dovish: The statements (mostly related to News) that indicate an expected weakness in the currency price.

Downtrend: See “Trend”

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