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| Back Office | Settlement and related processes
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| Balance of Payments | An account of all transactions between one country and all other countries – transactions that are measured in terms of receipts and payments. The three main components of BOP are the current account, the capital account and the balancing account
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| Balance of Trade | The value of exports less imports of an economy. There are visible and invisible balance figures. The visible balance represents the physical goods while the invisible represents the service economy
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| Bank Notes | Bank notes are paper issued by the central bank and are legal tender
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| Bank Rate | The rate at which a central bank is prepared to lend money to its domestic banking system
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| Barrier Option | A path dependent option that has a knock-in or knock-out feature that causes the option to become effective or terminate if a specified barrier level is reached
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| Base Currency | In foreign exchange markets, the base currency is the first currency in a currency pair. The second currency is named the quote currency or secondary
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| Basis Point | One hundredth of a percentage point (0.01%)
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| Basis | The difference between the cash price and the futures price
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| Bear (Put) Spread | A spread designed to exploit falling exchange rates by purchasing a put option with a high strike price and selling one with a low strike price
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| Bear Market | A substantial drop in prices over a prolonged period of time
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| Bear | An investor who believes that prices are going to fall
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| Bid | The highest price a dealer will pay at any given time to purchase a currency pair or a financial instrument
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| Big Figure | Refers normally to the first three digits of an exchange rate
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| Black-Scholes Model | An option pricing formula initially derived by Fisher Black and Myron Scholes for securities options and later refined by Black for options on futures
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| Break Even Point | The price of a financial instrument where total revenue received equals total costs (TR=TC)
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| Break Out | A technical term used by chartists to denote a break of a support, a resistance level, or any technical formation
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| Broker | An agent who executes orders to buy and sell currencies and related instruments either for a commission or a spread
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| Brokerage | The commission charged by a broker
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| BUBA (Bundesbank) | Bundesbank, the Central Bank of Germany
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| Bull Market | A substantial rise in prices over a prolonged period of time
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| Bull (call) Spread | A spread designed to exploit rising exchange rates by purchasing a put option with a lower strike price and selling one with a higher strike price
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| Bull | An investor who believes that prices are going to rise
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| Bullion | A term for gold bars
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| Butterfly Spread | An option strategy combining a bull and bear spread. It uses three strike prices. The lower two strike prices are used in the bull spread and the higher strike price from the bear spread. Both puts and calls can be used
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| Buyer/Taker | The purchaser of a currency pair or an option
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| Buying Rate | Rate at which the dealer is willing to buy the currency; or bid price
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| Buying the Spread | In an option, buy the nearby contract and simultaneously sell the deferred contract; also referred to as a bull spread
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