Stock market terms starting with C

Cash-Secured Put Derivatives, Futures & Options ₹ Writing a put while setting aside enough cash to buy the underlying if assigned. Cash to Reserve = Strike x Lot Size; Effective Purchase Price if Assigned = Strike - Premium Received

CDSL Indian Market, Regulation & Taxation qualitative The Central Depository Services Limited, India's second depository, holding securities in electronic form. Test: the demat account number is a 16-digit numeric identifier

Certificate of Deposit Bonds & Fixed Income % A negotiable short-term deposit receipt issued by a bank at a discount to face value. Yield = [(Face Value - Price) / Price] x (365 / Days to Maturity) x 100

Chaikin Money Flow Indicators & Oscillators ratio (x, times) The sum of volume weighted by close position over n periods, divided by total volume over the same periods. CMF = Sum of (Money Flow Multiplier x Volume) over n / Sum of Volume over n

Chandelier Exit Indicators & Oscillators ₹ A trailing stop placed a multiple of average true range below the highest high since entry. Long Exit = Highest High over n periods - Multiplier x ATR; Short Exit = Lowest Low over n periods + Multiplier x ATR

Channel Technical Analysis & Chart Patterns qualitative A pair of parallel trendlines enclosing price movement, one along the swing highs and one along the swing lows. Test: an upper and a lower line of equal slope contain the price series over the period examined

Chart Timeframe Technical Analysis & Chart Patterns qualitative The period each bar or candle on a chart represents, from one minute to one month. Test: the timeframe states the duration aggregated into a single plotted period

Circuit Breaker Orders, Execution & Market Structure % An automatic trading halt triggered when an index or a security moves beyond a preset percentage from a reference price. Trigger: index movement of 10%, 15% or 20% from the previous close, with halt duration depending on the level and the time of day

Clean Price Bonds & Fixed Income ₹ A bond's quoted price excluding accrued interest. Clean Price = Dirty Price - Accrued Interest

Clearing Corporation Orders, Execution & Market Structure qualitative The entity that steps between buyer and seller after a trade, guaranteeing settlement to both sides. Test: through novation the clearing corporation becomes buyer to every seller and seller to every buyer

Clearing Member Orders, Execution & Market Structure qualitative A member of a clearing corporation that settles trades and posts margins, either for itself or on behalf of trading members. Test: the firm holds clearing membership and is directly liable to the clearing corporation for settlement obligations

Closet Indexing Funds, ETFs & Index Investing qualitative An active fund that holds a portfolio close to its benchmark while charging active management fees. Test: low active share and low tracking error combined with an expense ratio typical of active management

Closing Price Market Basics & Instruments ₹ The official end-of-day price of a security, computed in India as the volume-weighted average price of trades in the last thirty minutes. Closing Price = VWAP of all trades between 15:00 and 15:30

Co-location Orders, Execution & Market Structure qualitative The practice of placing a trading firm's servers in the exchange's own data centre to minimise the time an order takes to arrive. Test: the participant's matching-engine access is from within the exchange data centre rather than over a public network

Collar Derivatives, Futures & Options ₹ Holding shares while buying a protective put and writing a call, funding the protection with the premium received. Net Cost = Put Premium - Call Premium; Outcome is bounded between (Put Strike - Net Cost) and (Call Strike - Net Cost)

Commercial Paper Bonds & Fixed Income % A short-term unsecured promissory note issued by a company at a discount to face value. Yield = [(Face Value - Price) / Price] x (365 / Days to Maturity) x 100

Commodity Market Basics & Instruments qualitative A standardised raw material or primary product that is traded in interchangeable units, such as gold, crude oil or cotton. Test: units of the good are fungible against a published quality specification, so one unit is a perfect substitute for another

Commodity Channel Index Indicators & Oscillators ratio (x, times) An unbounded oscillator measuring how far the typical price sits from its moving average, scaled by mean deviation. CCI = (Typical Price - SMA of Typical Price) / (0.015 x Mean Deviation), where Typical Price = (High + Low + Close) / 3

Commodity Cycle Economy, Macro & Market Cycles qualitative The long swing in commodity prices driven by the lag between demand changes and the supply response. Test: high prices induce investment in new supply, which arrives years later and depresses prices, discouraging investment in turn

Commodity Transaction Tax Indian Market, Regulation & Taxation % A tax on the sell side of non-agricultural commodity derivative transactions on recognised exchanges. CTT = Sell-Side Transaction Value x Applicable Rate

Comparable Company Analysis Fundamental Analysis & Valuation qualitative The selection and adjustment of a peer group whose multiples are used to value a target company. Test: peers share the business model, growth profile, margin structure, capital intensity and regulatory environment of the target

Compound Annual Growth Rate Fundamental Analysis & Valuation % The constant annual rate at which a value would have had to grow to move from its starting figure to its ending figure. CAGR = (Ending Value / Beginning Value) raised to (1 / Number of Years) - 1

Concentration Risk Risk & Portfolio Management % The exposure created when a large share of a portfolio sits in one holding, sector or risk factor. Test: the largest position, sector or factor exposure is large enough that a normal adverse outcome in it would materially damage the portfolio

Conditional Value at Risk Risk & Portfolio Management ₹ The average loss on the occasions when the value-at-risk threshold is exceeded. CVaR = Average of all losses greater than the VaR threshold

Terms starting with C