Tag: C

Contract Month

A futures contract expires during this month. Delivery may also take place in this month, dependent upon the terms of the contract. This month is sometimes referred to as the contract month or the delivery month.

Counter Party

The party that takes the other side of an exchange transaction.

Cover

To repurchase a previously sold contract. also called short cover.

CPI – Consumer Price Index

The CPI is the change in the goods and services price, purchased by consumers; The consumer prices account for a majority of general inflation. This is important to currency valuation because rising prices push the Central Bank to raise interest rates in accordance with the inflation containment mandate.

Credit

A contractual agreement in which a borrower receives something of value now, in exchange for the promise to repay the lender at a later date–typically with interest.

Cross Rates

Rates between two currencies neither of which is the US Dollar or the base currency.

Cryptocurrency

A form of digital currency operating outside government or banking organizations.

Current Account

The net balance of a country’s balance of payments (BOP) and contains the import and export items of goods and services as well as transfer payments and net investment income.