Forex Glossary 2

Forex Glossary (PART2 )

• Basis
  The difference between the spot price and the futures price 

• Basis Point
  One hundredth of a percent

• Bear
  An investor who believes that market prices will decline

Forex-Glossary

• Bear Market
  A trend distinguished by a prolonged period of declining prices accompanied with widespread pessimism

• Bid
  The price at which a buyer is prepared to purchase; the price offered for a currency

• Bid/Ask Spread
  See spread

• Big Figure
  A dealer phrase 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 as, "30/35

• Bonds
  Tradable instruments (debt securities) issued by a borrower to raise capital. They pay either fixed or floating interest, known as the coupon. As interest rates fall, bond prices rise and vice versa

• Book
  The summary of a traderâ??s or a deskâ??s total positions

• Bretton Woods Accord of 1944
  An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets and set the price of gold at USD 35 per ounce. The agreement lasted until 1971. 

• Broker
  An individual or firm that acts as an intermediary between buyers and sellers, usually for a fee or commission. A dealer, by contrast, performs the same service but 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 

• Bull
  An investor who believes that market prices will rise

• Bull Market
  A trend distinguished by a prolonged period of rising prices; the opposite of bear market

• Bundesbank
  The central bank of Germany

• Cable
  Trader jargon referring to the Sterling/US Dollar exchange rate. The term originated in the mid 1800â??s, when the rate was transmitted via a transatlantic cable