Trading glossary

Backtesting Backtesting Definition: Backtesting is the process of testing a trading strategy against historical market data to evaluate its theoretical performance before deploying real capital. The process ap... Backwardation Backwardation Definition: Backwardation is a market condition in futures markets where the futures price of an asset is lower than the spot price, with prices for later expiration months progressiv... Bar Chart Bar Chart Definition: A bar chart is a price visualization displaying open, high, low, and close prices for each time period as vertical bars with horizontal lines (wicks). Each bar represents one ... Basis Point Basis Point Definition: A basis point (bp) is one hundredth of one percentage point — equal to 0.01%. It is the standard unit for expressing small changes in interest rates, bond yields, credit spr... Basket of Goods Basket of Goods Definition: A basket of goods is a fixed set of products and services whose prices are tracked over time to measure inflation. Statistical agencies select items that represent typic... Bear Flag Pattern Bear Flag Pattern Definition: A Bear Flag is a bearish continuation chart pattern consisting of a sharp downward move (the "flagpole") followed by a brief consolidation period of rising or sideways... Bear Market Bear Market Definition: A bear market is a sustained period of falling prices across a financial market, typically defined as a 20% or greater decline from recent highs lasting months or years. Bea... Bear Trap Bear Trap Definition: A bear trap is a false breakdown pattern where price briefly breaks below a recognized support level, triggering short positions and stop loss orders from long holders, before... BEP-2 BEP-2 Definition: BEP-2 is the technical token standard for creating and issuing digital assets on BNB Beacon Chain, the original blockchain launched by Binance in 2019. It defines the rules that a... BEP-20 BEP-20 Definition: BEP-20 is the technical standard for fungible tokens on Binance Smart Chain (BSC), now renamed to BNB Chain, providing full compatibility with Ethereum's ERC-20 standard while of... Beta (Volatility) Beta (Volatility) Definition: Beta is a measure of an asset's price sensitivity to movements in a broader market benchmark — quantifying how much the asset typically moves when the market moves. A ... Bid Price Bid Price Definition: The bid price is the highest price a buyer is willing to pay for an asset at any given moment. It appears on the left side of a market quote and is always lower than the ask p... Bid-Ask Spread Bid-Ask Spread Definition: The bid-ask spread is the difference between the highest price a buyer will pay for an asset (the bid) and the lowest price a seller will accept (the ask). It is the prim... Bitcoin (BTC) Bitcoin Definition: Bitcoin is the first and largest cryptocurrency by market capitalization, created in 2009 by pseudonymous creator Satoshi Nakamoto. It operates as a peer-to-peer electronic cash... Bitcoin Cash (BCH) Bitcoin Cash Definition: Bitcoin Cash (BCH) is a cryptocurrency created in August 2017 through a hard fork of Bitcoin, intended to function as "peer-to-peer electronic cash" with larger block sizes... Bitcoin Core Bitcoin Core Definition: Bitcoin Core is the reference software implementation of the Bitcoin protocol — the open-source program that defines how Bitcoin nodes validate transactions and blocks, sto... Bitcoin Dominance Bitcoin Dominance Definition: Bitcoin dominance is Bitcoin's market capitalisation expressed as a percentage of the total cryptocurrency market capitalisation. It measures how much of the entire cr... Bitcoin Pizza Bitcoin Pizza Definition: Bitcoin Pizza refers to the first documented real-world commercial transaction using Bitcoin, which took place on May 22, 2010, when programmer Laszlo Hanyecz paid 10,000 ... Black Swan Event Black Swan Event Definition: A black swan event is a rare, unpredictable occurrence that has an extreme impact on financial markets or broader systems, and that appears obvious in hindsight despite... Block Explorer Block Explorer Definition: A block explorer is a web-based tool that lets anyone search and read the data stored on a public blockchain — transactions, wallet balances, block details, and network s... Block Height Block Height Definition: Block Height is the sequential number identifying a specific block's position in a blockchain, counting from block 0 (the genesis block) to the latest block produced by the... Block Reward Block Reward Definition: A block reward is the total amount of cryptocurrency a miner receives for successfully adding a new block to a proof-of-work blockchain. It consists of two components: the ... Block Size Block Size Definition: Block Size is the maximum amount of data a blockchain block can contain, typically measured in megabytes (MB) or transaction count, which directly determines the network's tr... Block Time Block Time Definition: Block Time is the average duration between the production of consecutive blocks on a blockchain network, determining how frequently new transactions are confirmed and added t... Blockchain Blockchain Definition: A blockchain is a distributed ledger that records transactions in a sequence of linked blocks, where each block contains a cryptographic reference to the one before it, makin... BNB (Binance Coin) BNB Definition: BNB (Binance Coin) is the native token of the BNB Smart Chain, a blockchain created by Binance (the world's largest cryptocurrency exchange). Originally created as a utility token t... Bollinger Bands Bollinger Bands Definition: Bollinger Bands are a volatility-based technical indicator developed by John Bollinger in the early 1980s, consisting of three lines — a middle band (typically 20-period... Bond Market Bond Market Definition: The bond market is the global marketplace where debt securities — bonds — are issued and traded. Governments, corporations, and other entities issue bonds to raise capital b... Bond Maturity Bond Maturity Definition: Bond maturity is the date on which a bond's principal — the face value borrowed by the issuer — is repaid to the bondholder and the bond ceases to exist. Until that date, ... Breakdown Breakdown Definition: A breakdown occurs when an asset's price moves decisively below a recognized support level, typically accompanied by elevated trading volume that confirms the move's significa... Breakout Breakout Definition: A breakout occurs when an asset's price moves decisively above a recognized resistance level or below a recognized support level, typically accompanied by elevated trading volu... Broker Broker Definition: A broker is an intermediary that executes buy and sell orders on behalf of traders and investors, providing access to financial markets in exchange for a fee — typically a commis... BSC (Binance Smart Chain) BSC Definition: Binance Smart Chain (BSC), now officially rebranded as BNB Smart Chain, is a blockchain network launched by Binance in September 2020 that supports smart contracts and is compatible... BUIDL BUIDL Definition: BUIDL is a crypto community term derived from the deliberate misspelling of "build," used to describe the philosophy of continuing to develop and create useful products in the blo... Bull Flag Pattern Bull Flag Pattern Definition: A Bull Flag is a bullish continuation chart pattern consisting of a sharp upward move (the "flagpole") followed by a brief consolidation period of declining or sideway... Bull Market Bull Market Definition: A bull market is a sustained period of rising prices across a financial market, typically defined as a 20% or greater advance from recent lows lasting months or years. Bull ... Bull Trap Bull Trap Definition: A bull trap is a false breakout pattern where price briefly breaks above a recognized resistance level, triggering long positions and stop loss orders from short holders, befo... Buy the Dip Buy the Dip Definition: Buy the dip (sometimes abbreviated "BTFD") is a contrarian trading strategy of purchasing assets during price pullbacks within established uptrends, expecting prices to resu... Buy The Dip (BTFD) BTFD Definition: BTFD is trading slang for "Buy The Dip" (with an aggressive expletive inserted) — an intensified variation of the buy-the-dip strategy that emerged from internet trading forums dur... Buy Wall Buy Wall Definition: A buy wall is a large concentration of buy orders sitting at a specific price level in an asset's order book, creating a visible floor of demand that price must consume before ...