Education Glossary

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Definitions Starting with "b"

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Term Definition
Breakaway Gap

A blank space which appears above or below the price bars on a price chart that signifies that a new trend has begun.

Baby Bond

A bond with a face value lower than $1k.

Bearish Engulfing Pattern

A Candlestick price chart pattern where a large black candlestick fully engulfs a small white candlestick appearing just prior.

Bullish Engulfing Pattern

A Candlestick price chart pattern where a small black candlestick is followed by a large white candlestick that engulfs the candlestick bar preceding it.

Basis Point

A common unit of measure (1/100th of one percent) used to describe the percentage change in value of a financial instrument or interest rates.


A financial product that allows an investor to lend money to a government or company. The entity issues what is essentially an IOU, which is then purchased by investors. Investors receive the principal (full amount) at the bond's maturity (expiration), along with interest for the bond's term.


A graphical representation of price activity for a specific time interval where open, high, low and closing prices for the interval are specified.

Block Trade

A large amount of stocks or bonds (at least 10,000 shares) traded in a single transaction.

Bear Market Correction

A long-term market trend where the prices of securities have declined by a significant (15-20)percentage and drives sustained pessimism among investors.

Back-End Load

A percentage fee that investors pay when redeeming mutual fund shares within a specified duration, typically 5 to 10 years.

Bull Flag

A price chart pattern that occurs within an uptrend that produces a uniform price decline of lower tops and lower bottoms.

Bear Flag

A price chart pattern that represents asharp downtrend on high volume followed by generally sideways activity of gradually higher highs and higher lows.

Black Box

A self-contained trading system comprised of model-based formulas that are not revealed to the trader/user.

Bull Correction

A short-lived price retracement in a market that is rising.


A time period of fast and strong economic growth.


An advanced option strategy similar to a Covered Call where the trader buys stocks and writes call options against the underlying.

Breadth of Market

An indicator which measures the ratio of the number of advancing stocks to declining stocks.


An investor sentiment derived from a pessimistic belief that the financial markets (or any financial instrument within) is going to fall in value.

Binomial Model

An options valuation method that designates specific points in time within the time span of the valuation date to expiration. 

Buy Limit Order

An order to purchase a security at or below a specified price. The trader/investor specifies the price that they are willing to pay for a security, which guarantees that they will pay that price or better (less). If the specified price is not reached, the order will not be filled.

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