Financial Glossary

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B

ase and Quote Currencies

In a currency pair, the first currency is known as the base currency and the second is referred to as the quote currency. So, in the EUR/USD pair, the euro would be the base currency and the US dollar would be the quote currency.

Base Currency

The first currency in a currency pair. It shows how much the base currency is worth as measured against the second currency.

Beta

A measurement of the relationship between the price of a stock and the movement of the whole market.

Bid and ask

Every currency pair has two price quotes. The bid price represents how much of the quote currency the broker is willing to pay to buy the base currency from you. The ask price rep­ resents the amount of quote currency the broker is willing to accept to sell you the base currency.

Base Rate

The lending rate of the central bank of a given country.

Bear- Traders

Who expect prices to decline and may be holding short positions.

Black Swan

Black swan is used to describe an extremely rare and unpredictable event that triggers a perfect storm of catastrophic consequences.

Blue Chip Stocks

Blue Chip Stocks are stocks of large, Indus try-leading companies. These are market leaders and extremely popular among inventors. They’re large companies worth billions of dollars and often help shape the economy.

Bond

A name for debt which is issued for a specified period of time.

Bulls

Traders who expect prices to rise and who may be holding long positions.

Buyback

Companies can actually purchase back their shares of stock in what is called a share repurchase program or stock buyback

Buy DIPs

Looking to buy 20-30-pip/point pullbacks in the course of an intra-day trend.

Explore the financial glossary by downloading our financial glossary Pdf

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