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Back Months
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The futures or options on futures months being traded that are furthest from expiration. |
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Basis
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The difference between the cash or spot price and the price of the nearby futures contract. |
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Bar Chart
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A chart of price versus time. The vertical axis indicates price; time intervals are marked on the horizontal axis. For each time period, a vertical line denotes the high and low price of the security; a short horizontal protrusion to the right of the vertical line shows the closing price. |
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Bearish
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A news item is considered bearish if it is expected to produce lower prices. |
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Bear
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A market participant who believes prices will move lower is called a "bear." |
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Bear Market
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A market when prices are declining. |
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Bid
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The price they want to pay, i.e 20 bid on 40: They want to pay 20 on 40 contracts. On bids, the price is called first, then the number of contracts. |
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Board of Trade
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Any exchange or association of persons who are engaged in the business of buying or selling any commodity or receiving the same for sale on consignment. It usually means an exchange where commodity futures and/or options are traded. |
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Bottom
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A low for a security or the overall market. |
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Breadth
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The number of stocks advancing minus those declining. When the number of advancing issues exceeds the number of declining issues, the breadth of the market is viewed as bullish. On the other hand, when the number of advancing issues is less than the number of declining issues, breadth is considered to be a bearish sign. |
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Break
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A rapid and sharp price decline. |
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Breakout
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A substantial rise in price above a resistance level or decline in price below a support level. When a breakout occurs, a price trend is likely to continue. |
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Broker
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A person paid a fee or commission for acting as an agent in making contracts or sales; floor broker in commodities futures trading is a person who actually executes orders on the trading floor of an exchange; account executive (associated person) is the person who deals with customers and their orders in commission house offices. |
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Breakaway Gap
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The breakaway gap is much more significant as it occurs after a sideways channel or a consolidation period. A breakaway gap can signal the beginning of an important move. Commonly, breakaway gaps occur in heavy trading and are not filled, in fact, the heavier the volume the more likely it is the gap will not be filled. |
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Brokerage
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A fee charged by a broker for execution of a transaction - an amount charged per transaction or a percentage of the total value of the transaction; it is usually referred to as a commission fee. |
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Bullish
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The belief that market prices will rise. |
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Bull Market
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A market when prices are rising. A participant in futures who believes price will move higher is called a "bull." A news item is considered bullish if it is expected to bring on higher prices. |
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Buy or Sell on Close or Open
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To buy or sell at the end or the beginning of the trading session. |
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Buying Climax
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A sharp price run-up accompanied by extremely high volume created by investors rushing in to buy securities. This often happens at the end of an up price movement and typically represents a good time to sell. |
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There
is a substantial risk of loss in futures trading.