Base Currency
The first currency in a currency pair. It shows how much the base currency is worth as measured against the second currency. For example, if the USD/EUR (U.S. Dollar/EURO) rate equals 0.8534, then one USD is worth EUR 0.8534. In the forex market, the US dollar is normally considered the base currency for quotes, meaning […]
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 pessimistic market characterized with falling prices. In a bear market there are more sellers than buyers.
Bearish Engulfing
In the study of Candlesticks, a bearish engulfing pattern is formed when a small bullish candle is accompanied by a large bearish candle that overshadows or engulf the previous candle. It demonstrates the weakness in a buying trend and pre-indicates a potential selling trend in the market. For instance, the buyers are exhausted and sellers […]
Benchmark
A benchmark is a reference index that allows you to measure and compare the performance of a security or a stock portfolio. For example, an index such as the FTSE 100 is a benchmark.
Bid Price
The price at which the market is ready to buy a particular currency pair. It appears as the first part of a Forex quote and is the price a trader receives when they sell the base currency.
Bid Price
The bid is the price the market is willing to buy a specific currency pair. At this price, a forex trader can sell the base currency. It appears on the left of the quotation. As an example, if the USD/EUR is equal to 0.8541, the bid price is 0.8541; meaning you can sell one US […]
Bid/Ask Spread
The difference between the Bid price and the Ask price.
Binary options
A relatively new financial instrument with a fixed price, where profits and potential losses are known in advance. Binary options are a good instrument for novice traders as the possible profit is known before opening a trade and a position can be opened by simply choosing in what direction the price would go.
Bollinger Bands
Technical indicators for measuring market volatility. Built of a band which includes 3 lines: Center, Top and Bottom. The center line connects the average prices over a period of time. The supporting lines define the band between the peaks and lows across the presented period. Bollinger bands are good for identifying upcoming trends.