Trading Glossary Explained

Trading is a complex process, which includes many actions that a person unfamiliar with the financial world will find puzzling. Once you launch your trading career, you will be swamped with trading terms whose meaning you will not know. You will not immediately grasp how the market value of a business differs from its book value. Nor will you understand what CPI stands for and how it is different from IPO, unless we supply you with a glossary of all confusing terms that you meet in a trading business.

To help you avoid confusion, we have compiled a comprehensive glossary of financial terms used at the markets. All trading glossary is presented in our glossary in the alphabetical order and is explained with linguistic precision. Any financial term that sounds baffling to you now will become crystal clear once you read its definition in our glossary below.

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are currently 15 names in this directory beginning with the letter B.
Bar Chart
It is a type of the chart which consists of four significant points: the high and the low prices, which form the vertical bar; the opening price, which is marked with a horizontal line to the left of the bar; and the closing price, which is marked with a horizontal line to the right of the bar.
Base Currency
It is a term related to trading. it is the first currency quoted in a forex pair. It is also the accounting currency used by banks and other businesses.
Basing
A chart pattern used in technical analysis that shows when demand and supply of a product are almost equal. It results in a narrow trading range and the merging of support and resistance levels.
Bear Market
A market is referred to as Bear Market when it follows a prolonged downward trajectory. Traders then have no hope for a rally.
Bearish
This word refers to investors’ attitude to a market. When traders or investors say that the market or an asset is bearish, they believe that it is going to experience a downward trajectory.
Bid
This term refers to trading and investing. It is an amount a buyer is willing to pay to buy a financial instrument.
Bid Price
This is the price at which the market is prepared to buy a product. Prices are quoted two-way as Bid/Ask. In FX trading, the Bid represents the price at which a trader can sell the base currency, shown to the left in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the Bid price is 1.4527, meaning you can sell one US Dollar for 1.4527 Swiss francs. In CFD trading, the Bid also represents the price at which a trader can sell the product. For example, in the quote for UK OIL 111.13/111.16, the Bid price is £111.13 for one unit of the underlying market.
Blue-Chip Stocks
These are shares of companies that are financially stable, reputable, and long-established within their sector.
Bonds
It is a form of financial investment involving lending money to an institution for a predetermined period of time. Bonds can be of two types: corporate bonds and government bonds, depending to what institution the lending is made.
Book Value
This type of value refers to what a business is worth according to its financial records. It is contrasted to market value, a company’s worth according to financial markets. The company’s market price is the current market price per share multiplied by the total number of outstanding shares.
Brent Crude
This type of value refers to what a business is worth according to its financial records. It is contrasted to market value, a company’s worth according to financial markets. The company’s market price is the current market price per share multiplied by the total number of outstanding shares.
Broker
It is an independent person or a company organizing or executing financial transactions on behalf of another party. Brokers do this across different asset classes such as stocks, forex, real estate, and insurance. They usually charge a commission to execute an order.
Bull Market
This term refers to a market or an asset that is consistently following an upward trajectory.
Bullish
This term refers to investors’ attitude to markets or assets. Bullish investors and traders believe that the market is going to experience an upward price movement. They also buy an underlying market in order to profit by selling the market in the future, when the price has climbed.
Buy
This term refers to taking ownership of a financial instrument from someone else.
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