Glossary Of Terms

On this page, you will find short descriptions and meaning on some of the most commonly used terms when trading in Forex. We hope this will help give you a better understanding and you can always refer back to this glossary for terminology that you don't understand.

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

B

Balance Of Trade - This is the value of export minus import trades within a country.

Bank Rate - The prepared rate which the Central Bank is allowing to lend to it's domestic banking network.

Bar Chart - A type of Forex Chart which consists of graphical representaion of a bar to determine the high and lows of a trade during a period of time.

Base Currency - When a pair of currencies are quotes, the one on the left is the base currency. (e.g USD/JPY) where USD is the base currency of the pair.

Bear - A person who believes that the price value of a market will drop or decline.

Bear Market - Describes a market which the price has declined.

Bid - This is the price at which the market is prepared to buy a particular currency. e.g USD/JPY 113.32/42, means that you will get 113.32 Yen for every $1 USD sold.

Bid / Ask Spread - This the difference between the Bid and Ask Price.

Big Figure - This term is used to round off the foreign exchange rate into the first 2 or 3 digits.

Broker - An authorized agent who executes the orders on your behalf in order to earn a commission base on the transaction of your trade.

Bull - A person who believes a currency or the price of a market is going to incline.

Bull Market - The currency market that incurred a steady climb.

Bundesbank - This is the name of the Central Bank in Germany.