Terms starting with B
51 terms · page 1 of 3
Backtesting
Applying a set of trading rules to historical data to see how they would have performed.
Derivatives, Futures & OptionsBackwardation
A condition in which futures prices are below the spot price, and later expiries are priced below nearer ones.
Economy, Macro & Market CyclesBalance of Payments
A record of all economic transactions between a country's residents and the rest of the world in a period.
Financial Statements & AccountingBalance Sheet
A statement of what a company owns and owes at a single point in time, with the two sides always equal.
Funds, ETFs & Index InvestingBalanced Advantage Fund
A hybrid fund that varies its equity allocation dynamically according to a stated model, usually valuation-based.
Indian Market, Regulation & TaxationBank Nifty
The NSE's index of the most liquid large Indian banking stocks, used widely as a derivatives underlying.
Technical Analysis & Chart PatternsBar Chart
A chart showing each period as a vertical line spanning high to low, with left and right ticks marking the open and close.
Economy, Macro & Market CyclesBase Effect
The distortion in a growth rate caused by an unusually high or low value in the comparison period.
Market Psychology & Behavioural FinanceBase Rate Neglect
Ignoring the underlying frequency of an outcome when assessing a specific case.
Derivatives, Futures & OptionsBasis
The difference between a futures price and the spot price of its underlying.
Orders, Execution & Market StructureBasket Order
A single instruction that submits orders in several securities at once, in preset quantities.
Economy, Macro & Market CyclesBear Market
A sustained period of falling prices, conventionally marked by a decline of 20% or more from a high.
Derivatives, Futures & OptionsBear Put Spread
Buying a put at one strike and writing a put at a lower strike with the same expiry, capping both cost and gain.
Indicators & OscillatorsBearish Divergence
A condition in which price makes a higher high while an oscillator makes a lower high.
Technical Analysis & Chart PatternsBearish Engulfing
A two-candle formation in which a falling candle's body completely covers the preceding rising candle's body.
Market Psychology & Behavioural FinanceBehavioural Finance
The study of how psychological factors cause investors and markets to depart from purely rational decision-making.
Risk & Portfolio ManagementBenchmark
The index or standard against which a portfolio's performance is measured.
Risk & Portfolio ManagementBeta
A measure of how much an asset's return moves relative to the market's, on average.
Orders, Execution & Market StructureBid Price
The highest price a buyer in the order book is currently willing to pay for a security.
Orders, Execution & Market StructureBid-Ask Spread
The difference between the best ask and the best bid, representing the immediate cost of a round trip in a security.
Risk & Portfolio ManagementBlack Swan
An event that is unpredicted, has extreme impact, and is rationalised as predictable only after it occurs.
Derivatives, Futures & OptionsBlack-Scholes Model
A mathematical model that prices European options from the spot price, strike, time to expiry, interest rate and volatility.
Orders, Execution & Market StructureBlock Deal
A large trade executed in a dedicated exchange window at a negotiated price within a narrow band around the reference price.
Market Basics & InstrumentsBlue-Chip Stock
An informal label for shares of large, long-established, consistently profitable companies with strong balance sheets.