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Call rate

 

The overnight interest rate between banks.

 

Candlestick patterns

 

Also known as Japanese Candlestick patterns, these patterns appear on charts showing the change in exchange rate for a currency. Each ‚Äúcandlestick‚ÄĚ shows the lowest price and highest price for an exchange rate as well as the overall trend, within a certain interval of the overall trading period.

 

Carry trade

 

Where traders sell a currency with a low central banking interest rate to buy a currency with a high central banking interest rate and make money on the interest rate difference.

Cash Market

 

Also known as a spot market, commodities (in this case currencies) are bought and sold for cash, with immediate delivery.

 

Convertible Currency

 

Any currency that can be bought or sold freely on the foreign exchange market without having to get authorization from any official or government entity.

Cross Rate

 

A currency quote which does not involve the US dollar. For example, JPY/EUR.

Currency Pair

 

Any pair of currencies that can be traded one for the other, such as GBP/USD.

Currency Swap

 

More common between banks or central banks, this is a transaction where specific amounts of different currencies are exchanged, and interest on each amount is paid back to the original holder of that currency.