Trading Terms Use in Forex Market Starting With ‘B’
In Forex Market, people use millions of trading terms and it’s hard to remember all of them. To help you out in memorizing all commonly used terms in the Forex Market, Barry Sendach is describing some of the terms starting from alphabet ‘B’ –
- Broker – An intermediator who brings the sellers and buyers together for trade. Barry Sendach is a broker, who suggests people for profitable deals.
- Back Office – Branch of financial organization that confirms and regulates transactions, accounting, settlements, regulatory, clearances, record maintenance and compliance.
- Balance – Net value of account
- Balance of payments – Record of all transactions made by one particular industry. The compares the transactions & include foreign investments, balance in trade, foreign investments.
- Banks for international settlements (BIS) – An international organization encouraging the corporation of central banks and other financial institutions internationally. BIS is located in Basel to monitor and collect data regarding banking activities.
- Base Currency – Currency taken as the primary currency & is used by trader to maintain his account. Normally, dollar is considered as the base currency.
- Basis – The difference between future and cash price
- Basis Points – 1% of change in total yield equals 100 basis points. Alternatively, 0.01% change equals to 1 basis point.
- Bull – Actions of a trader expecting market prices to hike.
- Bear – Trader’s actions when he thinks the market will decline soon.
- Bundesbank – Central Bank of Germany
- Bid – The price an investor is willing to pay.
- Big figure – First number left to decimal point in exchange rate quote that changes and omit them in quotes.
- Bonds – Debt tools used to increase capital issues for a period more than a year. There are numerous types of bonds, bills and notes, corporate bonds, municipal bonds.
- Book – It is a type of record maintained by trader or desk for positions.
- Bretton Woods Accord (1944) – This accord established a legal and fixed exchange rate regime, which requires central bank to interfere to maintain stability in exchange rates.
- Buy a Bounce – A recommendation to stay in market for long.
- Buy Break – Recommendation to buy currency pair, if it is going to break to some specified level.
- Buy Stops above – Recommendation to step in the market at time when exchange rate breaks. Traders place the stop entry notice by assuming that the market rate breakage will continue in same direction for long.
Keep all the above-mentioned terms starting with alphabet ‘B’, whose meaning is elaborated by Barry Sendach, A Forex Market Expert.