B
BACK OFFICE
The Back Office is the official source of records for customer's accounts and trading activity. FXDD's Back Office stores all the information provided in your Account Statement Reports among other day to day activities.
BALANCE OF PAYMENTS
A systematic record of the real economic transactions during a given period for a particular country. Countries are either in a balance of payment excess or balance of payment deficit. Prolonged balance of payment deficits could lead to restrictions in capital transfers, and or decline in currency values.
BALANCE OF TRADE OR TRADE BALANCE
In general terms, the value of exports less imports for a particular country. A balance of trade deficit is when a country imports more than it exports. A balance of trade surplus is when a country exports more than it imports. If a country is in a prolonged trade deficit condition, the currency versus its trading partners should decline or weaken making the cost of imports more expensive and exports cheaper for the trading partners.
BANK LINE
Line of credit granted by a bank to a customer, also known as a "line".
BANKING DAY (OR BUSINESS DAY)
Any day that commercial banks are open for business in the financial center of the country whose currency a position is taken.
BANK OF ENGLAND (BOE)
The Bank of England is the central bank for the United Kingdom. It has a wide range of responsibilities, similar to those of most central banks around the world. For example, it acts as the government's bank and the lender of last resort, it issues currency and, most importantly, it oversees monetary policy.
BANK OF JAPAN OR BOJ
The central bank of Japan.
BASE CURRENCY
The first currency in a currency pair. In the currency pair EUR/USD, the Base Currency is the EUR. When entering a contract with FXDD, the base currency remains constant at a contracted lot value amount. For example, if a lot is 100,000, the customer who transacts to buy 1 lot of EUR/USD at a currency rate of .9600 would be contracting to exchange 100,000 EUR for $96,000 USD.
BASE RATE
A term used predominantly in the UK for the rate used by banks to calculate the interest rate charged to borrowers. Top quality borrowers will pay a small amount over base rate while lesser quality credits will pay a rate much higher than the base rate.
BASIS POINT
One per cent of one per cent. The difference between 3.75% and 3.76%.
BEAR MARKET
A situation whereby there exists a prolonged period of generally falling prices for a particular investment product.
BEAR SQUEEZE
The condition in the market where investors or traders who are short an investment product are forced to cover their position because a rising market condition, has inflicted losses on the account
BEAR
An investor who believes that price of an investment product is going to fall.
BEST-EFFORTS BASIS
The execution of an order at the next available price taking into consideration the volume available to buy or sell at that price and the quantity and volume of orders that precede the customer's order.
BID
The price at which FXDD offers to buy the currency pair from a customer.
BREAK OR BREAK OUT
Term used to describe a sudden or rapid fall in instruments pricing away from a consolidated range.
BROKER
An agent who executes orders to buy and sell currencies and related instruments either for a commission or on a spread.
BROKERAGE
Commission charged by a broker.
BULL MARKET
A prolonged period of generally rising prices for a particular investment product.
BULL
An investor who believes that prices of particular investment products are going to rise.
BUNDESBANK
The Central Bank of Germany.
BUSINESS DAY
Any day on which commercial banks are open for business other than Saturday or Sunday in the principal financial center of the country in whose currency a position is taken.
BUY LIMIT
Specifies the highest price at which the purchase of the Base Currency in a Currency Pair can be executed. The limit price in a Buy limit order should be BELOW the current dealing Ask price.
BUY STOP
A Buy Stop is a Stop Order that is placed ABOVE the current dealing Ask price and is not activated until the market Ask price is at or above the Stop Price. The buy stop order, once triggered, becomes a market order to buy at the current market price.