Glossary of terms

C
  • Cable

    It is a common name for the GBPUSD currency pair. It stems from the fact that this was originally transmitted via a transatlantic cable between New York and London.

  • Chicago PMI

    A report created by The National Association of Purchasing Management, it assesses the state of the industry in the Midwest. Also known as the Chicago Business Barometer. Published on the last day of the month to which it relates. For this reason, it is used to predict the ISM report. Its output level is 50, higher levels indicate expansion, lower shrinkage.

  • Commodity Channel Index

    The tool was developed by Donald Lambert to anticipate a trend reversal points in cycles. One of the basic assumptions of the CCI is to say that trends reverse at regular intervals, allowing investors to make appropriate decisions. In the event that the CCI exceeds 100, the Lambert theory says trend reversal is approaching.

  • Consumer Price Index

    An index measuring the differences in the prices of a representative basket of goods and services, such as food, energy, rent, clothing, transportation, medical care, entertainment and education. It is also known as the indicator of the cost of living.

  • Contract For Difference

    It is an OTC derivative instrument whose price change corresponds exactly to the change in the price of the underlying instrument. CFDs offer the possibility of addressing long or short positions. Long positions (purchases of contracts) are held by investors expecting a rise in the price of the underlying instrument, while short positions (sales of contracts) are held by investors expecting a fall in the price of the underlying instrument.

     

  • Currency pair

    An investor entering into transactions in the Forex market always trades currencies – this means that we buy one currency in exchange for another. A long position (earning on increases) on EURUSD means buying Euros for dollars, while a short position means selling Euros for dollars.