Forex Glossary - B -

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Back Office: Department where settlements of transactions take place

Balance of Payment: System that enables the tracking of a countries economic transaction.

Base Currency: The currency at which other currencies are quoted against. E.g.: GBP/USD where pound is the base currency.

Basis point: One hundredth of a percentage point. Difference between 7.55% and 7.85% is referred to as a 30 basis point move.

Bear Market: Is a prolonged period of time where price in the market is on a decline.

Bid: Price at which a buyer is ready to buy a particular currency while selling the other simultaneously.

Bid/Ask Spread: Is the difference between the ‘Bid’ and ‘Ask’ price.

Break-Even: Price at which premium is recovered.

Broker: An agent, who executes orders to buy and sell currencies either for a ‘Commission’ or on a ‘Spread’.

Bull Market: Is an extended period of time where price is on an incline.

Buy Limit Order: taking a position in the market where order is executed at a specified price.