FinPros

Trader's Glossary

Glossary

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There are currently 21 names in this directory beginning with the letter B.
B
Base Currency
A currency pair is formed by two currencies (e.g. EUR/USD). The base currency is the first currency in the currency pair, which in our example is the EUR.
Base Rate
A base rate is the interest rate set by central banks (Federal Reserve, European Central Bank, etc.) to charge commercial banks for loans.
Basis Point
A basis point or bp measures the interest rates and any other percentages in finance. Each basis point is equal to one hundredth of one percent, or 0.01%.
Bear
Bears are market participants who share a pessimistic view on a specific stock, currency or the overall market. They believe that a market is overvalued and prices will fall in the future.
Bear Market
A bear market is when a currency/stock/bond or any other asset class is in a long-term down trend.
Bearish
Being bearish is the belief that the price of an asset will fall. It is the exact opposite of being bullish, which is the belief that prices will increase in value.
Bid
The Bid represents the amount someone is willing to pay to buy a financial instrument.
Blue-Chip Stocks
Blue-chip stocks are the shares of companies that tend to be at or near the very top of their sector. They usually are very stable and have sound financials with a long-term economic growth outlook within their sector.
BoE
BoE simply stands for the Bank of England, which is the central bank of the UK
Bollinger Bands
Bollinger bands is a technical indicator that consists of an upper and lower band that help traders figure out potential support and resistance levels.
Bond Trading
Bond trading is the act of making profit from fluctuations in the value of bonds.
Bonds
Bonds are investment securities where an investor lends money to an institution or a government, in exchange for interest payments.
Brent Crude
Brent Crude or ‘Nort Sea Brent Crude’ is a grade of crude oil and one of the 3 main global oil benchmarks. The other two being WTI (West Texas Intermediate) and Dubai Crude.
Broker
A broker is a company that provides access to retail and institutional clients to trade in the financial markets. Clients can choose across a number of different asset classes, including stocks, forex, bonds and commodities.
Bull
Bulls are market participants who share an optimistic view on a specific stock, currency or the overall market. They believe that a market is undervalued and prices will keep increasing in the future.
Bull Market
A bull market is when a trading instrument is on an uptrend.
Bullish
Being bullish is the belief that the price of an asset will rise and trend higher. It is the exact opposite of being bearish, which is the belief that prices will fall in value.
Buy
Buying a stock, currency or any other asset means purchasing it from someone else in exchange for its market value and taking ownership of it. “Buying” or “Going Long” on an asset also means opening a Buy Position on a derivative of that asset without necessarily taking ownership by means of purchase.
Buy Limit Order
A Buy Limit is a “Pending Order” to buy at a certain price which is below the current market price. Traders place such orders when they expect the price to fall to a certain level and then bounce to the upside. When the market price reaches the level of the buy limit order, the trading platform will open a buy position with the pre-set parameters.
Buy Position
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Buy Stop Order
A Buy Stop is a “Pending Order” to buy at a certain price which is above the current market price. Traders place such orders when they expect the price to continue advancing once it hits a certain level. When the market price reaches the level of the buy limit order, the trading platform will open a buy position with the pre-set parameters.