FX Glossary(C)



The British Pound (British pounds / GBP). The forex exchange does not work to the whole world yet, at a time when the London market and the New York market has a completely different price movements, respectively, using the telephone line of submarine cable via the Atlantic Ocean, "Arbitrage” became the nickname from performing to the frequency between two markets. Although there is this theory ,it’s etymology fact is not clear.

Canadian Dollar

Refers to the dollar of Canada.


The upper limit of the time of change of a certain level in the market.

Capital Account Balance

It refers to the balance of capital transactions, such as direct investment and securities investment.

Capital Gain

Profit caused by the rise in the value of assets such as bonds and equity, currency, real estate. [← → Income Gain]

Capital Loss

Loss from the drop in the value of assets, such as securities in possession.

Carry Trade

It is the investment approach to operate in the asset at a higher interest rate in borrowing the funds of low interest rates. For example, it’s like an approach where "you made a loan in yen, borrowing huge amounts of yen funds, to buy the dollar in the yen funds, to buy US government bonds in dollars from rolling the funds". In this case, since the yen interest rate is cheap compared to the dollar interest rate, only the part with high interest rates of US Treasury, the difference in the interest rate will become the earnings. In trading the dollar / yen of Forex (foreign exchange margin trading), to risk the leverage to buy dollar, although this is like one type of carry trade to obtain swap point, it is important to remember that there is a possibility of loss by the fluctuation of the exchange rate.

Central Bank

In each country, the bank that mainly performs the business with regards to “banknote issuance”, “bank of banks”, “government banks” and the bank that performs stability, retention and development of the credit system of currency value. The Bank of Japan is established in 1882 which is the sole central bank of Japan with the goal to [price stability] and [stability of the financial system], also performs the various central bank businesses such as fund settlement services and public market operation. Every bank has exchange settlement deposit account to the central bank, the settlement is being done through the deposit or withdrawal to that account.


It is the thing which represents the price movements of the market in the graph. There are several types of chart by how it is drawn, such as candlestick chart, bar chart. In addition, by how to take the time such as monthly, weekly, daily, hourly, minute stick, and tick chart.


All the factors that have been woven to the market, such as economic conditions and supply and demand, it refers to the way of thinking of market participants that [if you study the movement of the chart (even without too much regard to the economic conditions, etc.), it is possible to predict the outcome of the market].


This means the Bid and the offer (offer) has the same rate. It is also referred to as "Either way”. [= Either Way]


Fewer participants in thin trading, the situation where price movements becomes rough.

Chicago Mercantile Exchange (CME)

Those people who do the futures trade currency in the Chicago Mercantile Exchange.

Close Out

It refers to ending or settling the position (open interest).

Closing Quotations

The last price established from a certain period of session, such as stock market and commodity futures market. [← → Openning Price]


The Chigaco Merchantile Exchange. It’s a trading place in Chicago where the Futures trading is being done.


To verify the transaction details in the foreign exchange trading.

Consignment Intervention

A thing where the Central bank of the concerned country acts as an agent that do market intervention to the central bank of other foreign countries.

Contract Date

The date the transaction was committed.

Coordinated Intervention

Intervention by the central bank of each country is being carried out jointly.


It refers to the average cost of the position you have (held value). Having good held value is directly connected to revenue, and end up not to be shaken off by a little dip, in a sense it can also hasten the advantage of the entire transaction which is very important.

Country Risk

In case of loan or investment abroad, the presentation of whether you have the creditworthiness of the target country. To evaluate the criteria such as political stability, international balance of payments, foreign exchange reserves and national income per capita, to determine the extent of the country’s debt repayment capacity. [= Sovereign Risk]

Counter Party

Trading partner. In the case of the Interbank trading, it refers to the other party bank.

Cover Deal

To oppose buying and selling of the client’s transaction, in order to adjust the balance.

Covert Interbention

At the Ministry of Finance and the Bank of Japan does not publish the “intervention”, that is carried out in stealth back, "Covert intervention" or "undercover "intervention", and commonly referred to as the "stealth intervention".[= Undercover Intervention]

Cross Order/Matched Order

To hold both buying and selling position of the same description.

Cross Trade

It is the exchange transactions not involving the US dollar. When we talk about euro cross, it means we like to center the trading into the Euro ("Euro-yen" and "Euro-pound", etc.), speaking of Yen cross, it means trading that are entwined with yen ("Euro-yen", "pound-yen” and “Swiss franc-yen”, etc.).

Current Account Balance

The income and expenditure incurred from the economic transaction of a country to a foreign country.

Currency Futures

The currency futures trading that is being performed in the trading place. The famous is the currency futures of the Chicago Mercantile Exchange (CME).

Currency Option

Right to buy and sell the currency. The right to buy the currency is call, the right to sell is called put.

Customer Dealer

In the foreign exchange market, among the dealers, the person who actually transact to the financial institutions, it refers to the person in charge of the customer.