Forex eBook

Forex Glossary B


Forex Word Meaning
Back OfficeThe departments and processes related to the settlement of financial transactions.
Balance of TradeThe value of a country’s exports minus its imports.
Bar ChartsStandard bar charts are commonly used to convey price activity into an easily readable chart. Usually four elements make up a bar chart, the Open, High, Low, and Close for the trading session/time period. A price bar can represent any time frame the user wishes, from 1 minute to 1 month. The total vertical length/height of the bar represents the entire trading range for the period. The top of the bar represents the highest price of the period, and the bottom of the bar represents the lowest price of the period. The Open is represented by a small dash to the left of the bar, and the Close for the session is a small dash to the right of the bar.
Base CurrencyIn general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX markets, the US Dollar is normally considered the ‘base’ currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar.
Bear MarketA market distinguished by declining prices.
Bid RateThe rate at which a trader is willing to buy a currency.
Bid/Ask SpreadThe difference between the bid and offer price, and the most widely used measure of market liquidity.
Big Figure Dealer expression referring to the first few digits of an exchange rate. These digits rarely change in normal market fluctuations, and therefore are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.30/107.35, but would be quoted verbally without the first three digits i.e. “30/35”.
BookIn a professional trading environment, a ‘book’ is the summary of a trader’s or desk’s total positions.
BrokerAn individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a ‘dealer’ commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.
Bretton Woods Agreement of 1944An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US $35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies.
Bull MarketA market distinguished by rising prices.
BundesbankGermany’s Central Bank.
Buying/SellingIn the forex market currencies are always priced in pairs; therefore all trades result in the simultaneous buying of one currency and the selling of another. The objective of currency trading is to buy the currency that increases in value relative to the one you sold. If you have bought a currency and the price appreciates in value, then you must sell the currency back in order to lock in the profit.
Bank Ratethe percentage rate at which central bank of a country lends money to the country's commercial banks.
"It will take only 2 sec to say thanks and will take only
10 sec to write a comment it will be a nice
encouragement for uploaders"


Help: If you have difficulties with downloading this Forex eBook please check FAQ . You can't find answer using FAQ? Than you can report your problem by Contact me.

No comments yet.

Leave a Reply