Glossary terms beginning with B

Back Office

The location or department where processing of the financial transaction is conducted.

Band

It is the range in which currencies are allowed to fluctuate, in countries where currencies are pegged or adjusted.

Balance of Trade

Refers to the difference between a country’s value of exports and imports. If Exports exceed Imports then a country is said to have a Trade Surplus. If a country’s value of imports is greater than its exports, then the country is said to have a Trade Deficit.

Bank Rate

It is pre fixed rate at which a central bank of a country is equipped to lend money to its pronominal banking system. 

Banking Day

It is the working days of the commercial bank of any nation, which are open for the business in the nation of the particular currency traded

Bar Charts

It is the most ongoing and popular way of studying and observing the fluctuation price of any currency pair.

Base

A technical analysis tool. A chart pattern depicting the period when the supply and demand of a certain stock are in relative equilibrium, resulting in a narrow trading range. The merging of the support level and resistance level

Base Currency

It is the term used in the forex trading. In it, the price of a currency is quoted in terms of a currency pair. The first currency in the pair is considered the base currency.  This base currency is the currency against of which pegged rate are quoted in a given country. For example: EUR/USD, here the euro is the base currency.

Base Rate

The official lending rate at which the Bank of England offers to the market

Basis point

A unit of measurement used to describe the minimum change in the price of a product. 

Bid

It is a price at which buyer offers to buy a financial product. This is also called bid price or bid rate.

Basis Point

0.0001 or one hundredth of 1%.

Bear

An investor who holds believe that prices will fall at certain market condition.

Bear Market

The dull phase of the market where trading scenario is not profitable. It is a phase where value of the financial instruments tends to decline.

Bid/Ask Spread

The difference in price between the offer and the bid price.

Big Figure

It is the first two or three number of a forex price. As for example, USD/JPY price of 106.04 the big figure is 1006. EUR/USD price of .678/24 the big figure is .67.

Book

The total number amount of currency lay a dealer has at any given point. Typically, the dealer targets to have a summation position of zero in terms of risk. This indicates that for the total aggregate, all clients long and short lays balances each other out.

Broker

An agent, who conducts orders to sell or buy currencies or any other financial instruments in return of a commission or a spread. These brokers can be either an individual or a financial institution such as banks, hedge funds etc.

Brokerage

An institution or a company, which lends trading services to the public

Bull

An investor or trader who firmly believe that the value of the financial instruments will rise in a given condition.

Bull Market

A favorable market, which shows constant sigh of growth or upward movement.

Buy Limit Order

It is an order to conduct a transaction at a certain specified price.

Buy dips

Looking to buy 20-30-pip/point pullbacks in the course of an intra-day trend.


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