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Terms beginnings with 'B'
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Balance
Is the amount of funds on a trading account that includes all closed positions, deposits and withdrawals. It does not include floating profit/loss, however the margin required to support open positions is a part of the balance. When a client has no open positions, balance denotes client’s personal funds. -
Bank of Canada
Canada's Central Bank, in charge of the nation's monetary policy. Also, BOC. -
Bank of England
A bank in charge of U.K.'s monetary policy. Interesting fact: the Bank of England has only been in charge of U.K.'s Monetary Policy since 1997. Also, BOE. -
Bank of Japan
A bank in charge of Japan's monetary policy. Also, BOJ. -
Bank rate
Is the rate at which a central bank lends money to its domestic banking system. -
Bar chart
Is a type of OHCL chart on which the top of the bar indicates the highest price over and the bottom represents the low price over the period of time. Opening price is shown on the left side of the bar and closing price is shown on the left.
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Base currency
Is the first currency in a forex quote, for example in EUR/USD currency pair a base currency is EUR. Base currency is always equal to 1 unit, and the price indicates how much of the second (quote) currency is required to buy or sell it. When for EUR/USD currency pair Bid price is listed as 1.13644, it means that 1 EUR is equal to 1.13644 USD. -
Basis Point
1/100th of 1%. Basis points (or bps) are often mentioned in connection with interest rate changes where 100 basis points = 1%. For instance, an interest rate cut of 25 basis points is equivalent to 0.25%. -
Bear
A trader who assumes that the asset price will decline in future and attempts to profit by opening short positions. The opposite of Bull. Also, Bearish investor. -
Bear market
A period of time during which the asset price consistently falls. It usually occurs when the economy is in recession or when inflation is high. -
Bearish candlestick
A candlestick indicating that the currency pair closed lower than it opened. -
Bid price
The price an asset can be sold at. Sell orders are opened by the bid price, and Buy orders are closed by it. The bid price represents how much quote currency is needed to get one unit of the base currency. For example, when the bid/ask prices for the EURUSD currency pair are listed as 1.08892/1.08897, selling 1 Euro will bring 1.08897 USD to the seller.
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Big Mac Index
An example of Purchasing Power Parity across nations, when a price of one Big Mac in each of the countries of McDonald's operation serves as a benchmark. -
Binance Coin
Binance is one of the most prominent digital currency exchanges globally based on daily trading volume. Binance Coin is an integral part of the successful functioning of many of the Binance sub-projects. Its currency uses the abbreviation BNB. -
Bitcoin
A digital currency used to make transactions via decentralised blockchain technology. Transactions are supported by ‘miners’ whose computers process transactions and who are rewarded for that in Bitcoins. -
Bollinger Bands
A technical analysis tool developed by John Bollinger in the 1980s for generating overbought and oversold signals. The Bands include: a simple moving average (or SMA) in the middle, an upper, and a lower band. If the price consistently touches the upper Band, it may point to an overbought signal, if it touches the lower Band, it may point to an oversold signal. -
Bonus
Is the extra amount of funds given by the broker to a client as a promotion, often under certain conditions. -
Breakdown
Is a price movement through an identified level of support. Breakdown is normally followed by sharp declines and heavy volume. -
Breakout
Is a situation where the price moves through an identified level of support or resistance. It is often followed by increased volatility and heavy volume. -
BRICS
An umbrella term uniting Brazil, Russia, India, China, and South Africa. It was coined by Goldman Sachs in 2003, which speculated that these economies will be the most dominant by 2050. -
BRL
Currency symbol for the Brazilian real. -
Broker
Brokers are individuals or firms that act as intermediaries between buyers and sellers. In foreign exchange, brokerage providers individual traders access to a trading platform that allows them to buy and sell currency pairs. Brokers can be compensated through commission or spread. Depending on the execution model applied, brokers can be divided into ECNs, Market Makers, Dealing Desk and Non-dealing Desk. -
Bronze
Is the user status that becomes available when the user's overall balance exceeds 4.99 USD. This status allows its holders to enjoy 24/5 Customer Support and commission-free deposits and withdrawals. Once achieved, this status cannot be downgraded. -
Bull
A trader who expects the price to rise and attempts to profit from this upward movement by opening long positions. Bull is considered to be the opposite of a Bear. Also, Bullish investor. -
Bull market
A period of time when the market is on the rise, meaning that the price of the asset is growing continuously and is expected to increase further. This period is usually charactirised by a strong economy and a high level of employment. -
Bullish candlestick
A candlestick indicating that the currency pair closed higher than it opened. -
Buy Limit
A Buy order to be executed at a specified price level. -
Buy Stop
A Buy order for a price that is above the current market price. Also, Stop Buy.
