Definitions with C

• Counterparty: Definition, Types of Counterparties, and Examples

  What Is a Counterparty? A counterparty in finance is essentially the other participant in a financial transaction. Every financial deal involves two sides; similar to having a dance partner, you can’t engage in a financial transaction alone. For example, if a person wants to buy an asset, such as an option, there needs to be […]

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• Correction

  What Is a Correction? In forex trading, a correction refers to a temporary reversal in the trend of a currency pair’s price. This normal phenomenon happens when prices have moved significantly in one direction, leading to a counter movement. Reasons for corrections include profit-taking, shifts in market sentiment, or the release of economic data. How […]

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• Contract for Differences

  What Is a Contract for Differences (CFD)? A contract for differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash-settled . There is no delivery of physical goods or securities with CFDs. Contracts for differences is an advanced trading strategy used by […]

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• Capital dividend

  What Is a Capital Dividend? A capital dividend, also known as a return of capital, is a distribution made by a company to its investors, sourced from its paid-in capital or shareholders’ equity. In contrast, regular dividends are paid out of the company’s earnings. Typically, a company opts to pay a capital dividend when its […]

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• Candlestick

  What Is A Candlestick? A candlestick chart is a valuable tool in financial analysis, showing an asset’s high, low, open, and closing prices within a set time frame. Originally utilized by Japanese rice traders to track market prices and momentum, this type of chart later gained widespread use in the United States. The key feature […]

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