Forex Glossary

Forex Terms starting in "B"

Forex Terms starting in "B"

  • Back to Back →

    A loan made in one currency in one country against a loan made in another currency in another country.

  • Backtest →

    A method of checking a certain trading system by analyzing historical data.

  • Balance of Payments →

    A statement that summarizes the total economic transaction of a country with the rest of the world.

  • Balance of Trade →

    The value of a country's exports minus its imports.

  • Band →

    The price range within which the value of a specified currency is allowed to fluctuate. This does not apply to free floating currencies.

  • Bank for International Settlements (BIS) →

    An international financial organization who's goal is to foster stability by connecting central banks of the world.

  • Bank Line →

    Credit granted by a bank to a customer.

  • Bank Notes →

    Paper issued by a central or issuing bank which are considered legal tender.

  • Bank of Canada (BoC) →

    The Central Bank of Canada.

  • Bank of England (BoE) →

    The Central Bank of England.

  • Bank of Japan (BoJ) →

    The Central Bank of Japan.

  • Bank Rate →

    The rate that a central bank lends money to its domestic banking system.

  • Base Currency →

    The first currency stated in a currency pair.

  • Basis →

    Difference between the cash price and futures price.

  • Basis Convergence →

    The movement of the basis towards zero as the expiration of a futures contract nears.

  • Basis Point →

    One percent of one percent.

  • Basis Price →

    The price expressed in annual rate of return.

  • Basis Trading →

    Trading to profit from the increase in the basis.

  • Basket →

    A group of currencies.

  • Bear →

    An individual who believes that the price of a certain trading instrument will fall.

  • Bear Market →

    A market in which prices are declining.

  • Bearish Divergence →

    A technical analysis where new price tops are getting higher as a certain technical indicator top is dipping, indicating weakness of the uptrend.

  • Beige Book →

    A compilation of surveys conducted by the 12 Federal banking districts, which is presented to the Federal Open Market Committee and available to the public 8 times a year.

  • Ben Bernanke →

    Current Chairman of the Board of Governors of United States' Federal Reserve Bank.

  • Bid Price →

    The price a trader can sell a particular financial instrument, such as currency pairs.

  • Bid/Ask Spread →

    The difference between the bid and ask price.

  • Big Figure →

    Often refers to the first two or three digits of a currency's price.

  • Binary Options →

    Similar to a standard call option, except the payoff at expiration is fixed.

  • Black-Scholes Modelhttp://www.cmsfx.com/admin →

    A model for option pricing. The formula assumes the underlying asset price follows a geometric Brownian motion with constant volatility. The Black-Scholes Model is the most widely used technique for pricing options.

  • Bollinger Band →

    A technical indicator that measures volatility.

  • Book →

    A summary of a traders total positions.

  • Breakout →

    When prices break through a predetermined level of support or resistance usually coming out of a consolidation period.

  • Bretton Woods Agreement of 1944 →

    A post-WWII agreement between major economies of the world that established fixed exchange rates and set the price of gold.

  • Broadening Formation →

    A chart pattern formation that some traders use as indication of a potential trend reversal.

  • Broker →

    An individual or a firm that executes investment or trade orders for a fee.

  • BUBA →

    Short form of Bundesbank, the Reserve Bank of Germany.

  • Building (Housing) Permits →

    The number of newly authorized construction projects.

  • Bull →

    An individual that believes price of a trading instrument will rise.

  • Bull Market →

    A market in which prices are increasing.

  • Bullish Divergence →

    A technical analysis where new price bottoms are getting lower as a certain technical indicator bottom is rising indicating weakness in the downtrend.

  • Bund →

    The federal bond of the German government.

  • Bundesbank →

    The reserve bank of Germany.

  • Business Inventories →

    A fundamental indicator of the value of unsold goods produced by retailers, wholesalers and manufacturers.

  • Buy Limit Order →

    An order to execute a transaction to buy an asset at a specified price or lower.

  • Buy On Margin →

    A process to buy an underlying asset with cash for only a part of the total price.

Forex Trading Terms (Alphabetical)