Super Finance Glossary

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Over 10,000 financial glossary terms...

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Browsing by the letter "C"

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Clearing
Definition: The procedure through which the clearing organization becomes the buyer to each seller of a futures contract or other derivative, and the seller to each buyer for clearing members.
Clearing Corporations
Definition: Organizations that are affiliated with exchanges and are used to complete securities transactions by taking care of validation, delivery, and settlement.
Clearing House Automated Payments System (CHAPS)
Definition: A computerized clearing system for sterling funds that began operations in 1984. It includes 14 member banks, nearly 450 participating banks, and is one of the clearing companies within the structure of the Association for Payment Clearing Services (APACS).
Clearing House Electronic Subregister System (CHESS)
Definition: CHESS is the automatic transfer and settlement system for the majority of Australian Stock Exchange (ASX) listed securities.
Clearing House Funds
Definition: Funds from the Federal Reserve System, requiring three days to clear, that are passed to and from banks.
Clearing House Interbank Payments System (CHIPS)
Definition: An international wire transfer system for high-value payments operated by a group of major banks.
Clearing Member
Definition: A member firm of a clearing house. Each clearing member must also be a member of the exchange. Not all members of the exchange, however, are members of the clearing organization. All trades of a non-clearing member must be registered with, and eventually settled through, a clearing member.
Clearing Member Trade Agreement (CMTA)
Definition: An agreement that allows a client to execute derivative trades through different brokers yet consolidate positions for clearing purposes at one brokerage firm.
Clearing Organization
Definition: An entity through which futures and other derivative transactions are cleared and settled. It is also charged with assuring the proper conduct of each contract's delivery procedures and the adequate financing of trading. A clearing organization may be a division of a particular exchange, an adjunct or affiliate thereof, or a freestanding entity. Also called a clearing house, multilateral clearing organization, or clearing association. See Derivatives Clearing Organization.
Clearinghouse
Definition: An adjunct to a futures exchange through which transactions executed on its floor where trades are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery procedures and the adequate financing of the entire operation.
CLF
Definition: The ISO 4217 currency code for Chile Unidades de Fomento.
Clientele Effect
Definition: Describes the tendency of funds or investments to be followed by groups of investors who have similar preferences for a firm which follows a particular financing policy, such as the amount of leverage it uses.
Clone Fund
Definition: A new fund set up in a fund family to emulate another successful fund.
Close
Definition: The close is the period at the end of the trading session. Sometimes used to refer to closing price. Related: Opening.
Close A Position
Definition: In the context of general equities, eliminate an investment from one's portfolio, by either selling a long position or covering a short position.
Close Market
Definition: An market in which there is a narrow spread between bid and offer prices, due to a high volume of trading and many competing market makers.
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