Home Wikituition Browse all terms Categories
Random term

Browse the dictionary

840 terms · page 6 of 35


A–Z
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Derivatives, Futures & Options

Cash and Carry Arbitrage

Buying the underlying in the cash market while selling its futures, locking in the basis as a return.

Locked-in Return = (Futures Price - Spot Price - Transaction Costs) / Spot Price, annualised over the days to expiry %
Financial Statements & Accounting

Cash and Cash Equivalents

Cash on hand, bank balances and short-term highly liquid investments readily convertible to a known amount of cash.

Test: the instrument matures within three months of acquisition and carries insignificant risk of change in value ₹ crore
Fundamental Analysis & Valuation

Cash Conversion Cycle

The number of days between paying for inputs and collecting cash from customers.

Cash Conversion Cycle = Inventory Days + Debtor Days - Creditor Days days
Financial Statements & Accounting

Cash Flow Statement

A statement reconciling the change in a company's cash balance over a period, split into operating, investing and financing activities.

Change in Cash = Operating Cash Flow + Investing Cash Flow + Financing Cash Flow ₹ crore
Economy, Macro & Market Cycles

Cash Reserve Ratio

The proportion of deposits banks must hold as cash with the Reserve Bank, earning no interest.

Required Reserves = Net Demand and Time Liabilities x Cash Reserve Ratio %
Derivatives, Futures & Options

Cash Settlement

Settlement of a derivative by paying the cash difference between the contract price and the final settlement price.

Settlement Amount = (Final Settlement Price - Contract Price) x Lot Size, sign adjusted for the position
Derivatives, Futures & Options

Cash-Secured Put

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
Indian Market, Regulation & Taxation

CDSL

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 qualitative
Bonds & Fixed Income

Certificate of Deposit

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 %
Indicators & Oscillators

Chaikin Money Flow

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 ratio (x, times)
Indicators & Oscillators

Chandelier Exit

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
Technical Analysis & Chart Patterns

Channel

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 qualitative
Technical Analysis & Chart Patterns

Chart Timeframe

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 qualitative
Orders, Execution & Market Structure

Circuit Breaker

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 %
Bonds & Fixed Income

Clean Price

A bond's quoted price excluding accrued interest.

Clean Price = Dirty Price - Accrued Interest
Orders, Execution & Market Structure

Clearing Corporation

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 qualitative
Orders, Execution & Market Structure

Clearing Member

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 qualitative
Funds, ETFs & Index Investing

Closet Indexing

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 qualitative
Market Basics & Instruments

Closing Price

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
Orders, Execution & Market Structure

Co-location

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 qualitative
Derivatives, Futures & Options

Collar

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)
Bonds & Fixed Income

Commercial Paper

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 %
Market Basics & Instruments

Commodity

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 qualitative
Indicators & Oscillators

Commodity Channel Index

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 ratio (x, times)