Letter C

C — Trading Terms Starting With C

Discover important trading terms beginning with C, including candlestick analysis, trading capital, commissions, consolidation, contracts, correlations, and counter-trend strategies.

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C
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Trading terms beginning with C

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C

Candlestick

A candlestick is a chart element that displays an asset’s open, high, low, and close for a selected period. Traders use candlestick shape, body size, wick length, and location to study momentum, rejection, and market sentiment.

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Capital

Capital is the money or financial resources available for trading, investing, or business activity. In trading, capital determines position capacity, risk tolerance, margin availability, and the ability to survive drawdown.

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Capital Gain

A capital gain occurs when an asset is sold for more than its purchase price. It may be realized when the position is closed or unrealized while the profitable asset remains open.

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Commission

Commission is a fee charged by a broker, exchange, or platform for executing a trade. It reduces net profit and can materially affect high-frequency, scalping, and small-target strategies.

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Compound Return

Compound return is the growth created when previous gains remain invested and contribute to future returns. Compounding can accelerate account growth, but losses also affect the larger or smaller capital base.

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Consolidation

Consolidation is a period in which price moves within a relatively narrow area without establishing a clear sustained direction. It may represent balance before continuation, breakout, reversal, or extended range trading.

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Contract Size

Contract size is the standardized quantity represented by one futures, options, forex, or CFD contract. It determines notional exposure, tick value, margin requirements, and profit or loss per price movement.

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Correlation

Correlation measures how closely two assets, markets, or strategies move in relation to each other. It usually ranges from -1 to +1, where positive values indicate similar movement and negative values indicate opposite movement.

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Counter-Trend Trading

Counter-trend trading involves taking a position against the prevailing market direction in anticipation of a pullback, mean reversion, or reversal. It usually requires clear confirmation and strict risk because strong trends can continue longer than expected.

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