Forex Money Signal Glossary For All The uestions You Have

forex back to glossary

Bank Rate The rate at which a central bank is prepared to lend money to its domestic banking system.

Back Office The office location, or department, where the processing of financial transactions takes place.

Base Currency: In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which exchange rates are generally quoted in a given country. Examples: USD/JPY, the US Dollar is the base currency; EUR/USD, the EURO is the base currency.

Bear Market:An extended period of general price decline in an individual security, an asset, or a market.

Bid:The price at which an investor can place an order to buy a currency pair; the quoted price where an investor can sell a currency pair. This is also known as the 'bid price' and 'bid rate'.

Bid/Ask Spread:The point difference between the bid and offer (ask) price.

Big Figure:The first two or three digits of a foreign exchange price or rate. Examples: USD/JPY rate of 108.05/10 the big figure is 108. EUR/USD price of .8325/28 the big figure is .83

Bretton Woods:The site of the conference which in 1944 led to the establishment of the post war foreign exchange system that remained intact until the early 1970s. The conference resulted in the formation of the IMF. The system fixed currencies in a fixed exchange rate system with 1% fluctuations of the currency to gold or the dollar.

Broker:An agent, who executes orders to buy and sell currencies and related instruments either for a commission or on a spread. Brokers are agents working on commission and not principals or agents acting on their own account. In the foreign exchange market brokers tend to act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties. There are four or five major global brokers operating through subsidiaries affiliates and partners in many countries.

Bull Market:A market which is on a consistent upward trend.

Buy Limit Order:An order to execute a transaction at a specified price (the limit) or lower.

Buy On Margin:The process of buying a currency pair where a client pays cash for part of the overall value of the position. The word margin refers to the portion the investor puts up rather than the portion that is borrowed.

Bundesbank:Central Bank of Germany.

Forex trading has potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Do not trade money you can not  afford to lose. Nothing in our website content shall be deemed a solicitation or an offer to Buy/sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those presented on our website. Please go to useful links and information to learn how to trade safely. Also, the past performance of any trading system is not necessarily indicative of future profits. Forex market trading involves high risks and you can lose a lot of money.You must consider the fact that in FOREX market anything is possible and might bring some loss into your account; FOREXMONEYSIGNAL does not guarantee to generate you profits every month. We cannot take responsibility for any losses on your account. You must take sole responsibility to evaluate all trading information provided by FOREXMONEYSIGNAL and use it at your own risk. All information we provide is intended as trade assistance only. By using our services, you understand and agrees that FOREXMONEYSIGNAL, its agents or employees shall not be liable for any losses of profits either directly or indirectly as a result of using our services.