Dictionary
- Bank Discount Yield
- An annualized interest rate assuming simple interest, a 360-day year, and using the face value of the security rather than purchase price to compute return per dollar invested.
- Banker’s Acceptance
- A money market asset consisting of a customer's order to a bank to pay a sum of money at a future date.
- Bar Chart
- A type of chart which shows the price movements of a market asset over a certain period of time. The high and the low prices form the vertical bar, the opening price forms the horizontal line to the left of the bar, and the closing price forms the horizontal line to the right of the bar.
- Base Currency
- The base currency is the first currency in a currency pair, and the currency that remains constant when determining a currency pair's price. For example, currency pairs against the USD will be identified as USD/BGN, where USD is the base currency.
- Basis
- The difference between the spot price and the futures price.