Central Bank A government or quasi-governmental organization that manages a country’s monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank. others include the ECB, BOE, BOJ.

Chartist An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader.

Choice Market A market with no spread. All trades buys and sells occur at that one price

Clearing The process of settling a trade.

Collateral - Something given to secure a loan or as a guarantee of performance.

Commission A transaction fee charged by a broker.

Contagion The tendency of an economic crisis to spread from one market to another. In 1997, political instability in Indonesia caused high volatility in their domestic currency, the Rupiah. From there, the contagion spread to other Asian emerging currencies, and then to Latin America, and is now referred to as the ‘Asian Contagion'.

Confirmation A document exchanged by counterparts to a transaction that states the terms of said transaction.

Contract The standard unit of trading.

Contract (Unit or Lot) The standard unit of trading on certain exchanges.

Counterparty One of the participants in a financial transaction.

Country Risk Risk associated with a cross-border transaction, including but not limited to legal and political conditions such as war etc.

Cross Rates The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate between two currencies other than the U.S. dollar, the currency in which most exchanges are usually quoted.

Currency Any form of money issued by a government or central bank and used as legal tender and a basis for trade.

Currency Risk the probability of an adverse change in exchange rates.