B

Balance-of-payments All the international commercial and financial

transactions of the residents of one country.

Bank of Canada (BOC) The central bank of Canada.

Bank of England (BOE) The central bank of the United Kingdom. It is a

less independent central bank. The government may overwrite its

decision.

Bank of France (BOF) The central bank of France.

Bank of Italy (BOI) The central bank of Italy.

Bank of Japan (BOJ) The Japanese central bank. Although its Policy Board

is still fully in charge of the monetary policy, changes are still subject

to the approval of the Ministry of Finance (MOF). The BOJ targets

the M2 aggregate.

Bar chart A type of chart that consists of four significant points: the

high and the low prices, which form the vertical bar; the opening

price, which is marked with a little horizontal line to the left of the

bar; and the closing price, which is marked with a little horizontal line

to the right of the bar.

Barrier options (trigger options, cutoff options, cutout options, stop options,

down/up-and-outs/ins, knockups) Options very similar to

European style vanilla options, except that a second strike price (the

trigger) is specified that, when reached in the market, automatically

causes the option to be expired (knockout options) or "inspired"

(knockin options).

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Bearish tasuki A bearish two-day candlestick combination. It consists

of a long blank bar that has a low above 50 percent of the previous

day's long black body, and closes marginally above the previous

day's high. The second day's rally is temporary, as it is caused only

by profit-taking. The sell-off is likely to continue the next day.

Bearish tsutsumi (the engulfing pattern) A bearish two-day candlestick

combination. It consists of a second-day bearish candlestick whose

body "engulfs" the previous day's small bullish body.

Bilateral grid An exchange rate system that links all the central

rates of the EMS currencies in terms of the ECU.

Black closing bozu A bearish candlestick formation that consists of a

long black bar (upper shadow).

Black marubozu (shaven head) A bearish candlestick formation that

consists of a long black bar (no shadow).

Black opening bozu A bearish candlestick formation that consists of a

long black bar (lower shadow).

Black-Scholes fair value model The original option pricing model, which

holds that a stock and the call option on the stock are comparable

investments and thus a risk less portfolio may be created by buying

the stock and selling the option on the stock, as a hedge. The

movement of the price of the stock is reflected by the movement of

the price of the option, but not necessarily by the same amplitude.

Therefore, it is necessary to hold only the amount of the stock

necessary to duplicate the movement of the price of the option.

Blank closing bozu A bullish candlestick formation that consists of a

long blank bar (lower shadow).

Blank marubozu (shaven head) A bullish candlestick formation that

consists of a long blank bar (no shadows).

Blank opening bozu A bullish candlestick formation that consists of a

long blank bar (upper shadow).

Bollinger bands A quantitative method that combines a moving

average with the instrument's volatility. The bands were designed to

gauge whether the prices are high or low on a relative basis. They

are plotted two standard deviations above and below a simple

moving average. The bands look like an expanding and contracting

envelope model. When the band contracts drastically, the signal is

that volatility will expand sharply in the near future. An additional

signal is a succession of two top formations, one outside the band

followed by one inside. If it occurs above the band, it is a selling

signal. When it occurs below the band, it is a buying signal.

Book method Point-and-figure chart's original name.

Box spread A compound option strategy that consists of four options with a

common expiration date: a long call and a short put at one strike

price, and a long put and a short call at a different strike price.

Breakaway gap A price gap that occurs in the beginning of a new

trend, many times at the end of a long consolidation period. It may

also appear after the completion of major chart formations.

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Breakout of a spread triple bottom A bearish point-and-figure chart

formation that suggests that the currency is likely to break a support

line the third time it reaches it. The currency failed to reach the

support line once.

Breakout of a spread triple top A bullish point-and-figure chart

formation that suggests that the currency is likely to break a

resistance line the third time it reaches it. The currency failed to

reach the resistance line once.

Breakout of a triple bottom A bearish point-and-figure chart formation

that suggests that the currency is likely to break a support line the

third time it reaches it.

Breakout of a triple top A bullish point-and-figure chart formation that

suggests that the currency is likely to break a resistance line the third

time it reaches it.

Bullish tasuki A bullish two-day candlestick combination. It consists

of a long black bar that has a high above 50 percent of the previous

day's long blank body, and closes marginally below the previous

day's low.

Bullish tsutsumi (the engulfing bar) A bullish two-day candlestick

combination. It consists of a second bullish candlestick whose body

"engulfs" the previous day's small bearish body.

Bundesbank The German central bank. In addition to its domestic

obligations, the Bundesbank has had international obligations since

1979 as the front player of the European Monetary System. The

Bundesbank is a very independent central bank.

Business firms (establishment) survey Survey of the payroll, workweek,

hourly earnings, and total hours of employment in the non farm

sector.

Business Inventories An economic indicator that consists of the items

produced and held for future sale.

Butterfly spread A compound option strategy that consists of a combination

of a bull spread and a bear spread, using either calls or puts.

Balance-of-payments All the international commercial and financial

transactions of the residents of one country.

Bank of Canada (BOC) The central bank of Canada.

Bank of England (BOE) The central bank of the United Kingdom. It is a

less independent central bank. The government may overwrite its

decision.

Bank of France (BOF) The central bank of France.

Bank of Italy (BOI) The central bank of Italy.

Bank of Japan (BOJ) The Japanese central bank. Although its Policy Board

is still fully in charge of the monetary policy, changes are still subject

to the approval of the Ministry of Finance (MOF). The BOJ targets

the M2 aggregate.

Bar chart A type of chart that consists of four significant points: the

high and the low prices, which form the vertical bar; the opening

price, which is marked with a little horizontal line to the left of the

bar; and the closing price, which is marked with a little horizontal line

to the right of the bar.

Barrier options (trigger options, cutoff options, cutout options, stop options,

down/up-and-outs/ins, knockups) Options very similar to

European style vanilla options, except that a second strike price (the

trigger) is specified that, when reached in the market, automatically

causes the option to be expired (knockout options) or "inspired"

(knockin options).

forexSwiss.com Глоссарий и специальные термины

ФОРЕКС. Электронное руководство для успешной торговли на валютном рынке 118

Bearish tasuki A bearish two-day candlestick combination. It consists

of a long blank bar that has a low above 50 percent of the previous

day's long black body, and closes marginally above the previous

day's high. The second day's rally is temporary, as it is caused only

by profit-taking. The sell-off is likely to continue the next day.

Bearish tsutsumi (the engulfing pattern) A bearish two-day candlestick

combination. It consists of a second-day bearish candlestick whose

body "engulfs" the previous day's small bullish body.

Bilateral grid An exchange rate system that links all the central

rates of the EMS currencies in terms of the ECU.

Black closing bozu A bearish candlestick formation that consists of a

long black bar (upper shadow).

Black marubozu (shaven head) A bearish candlestick formation that

consists of a long black bar (no shadow).

Black opening bozu A bearish candlestick formation that consists of a

long black bar (lower shadow).

Black-Scholes fair value model The original option pricing model, which

holds that a stock and the call option on the stock are comparable

investments and thus a risk less portfolio may be created by buying

the stock and selling the option on the stock, as a hedge. The

movement of the price of the stock is reflected by the movement of

the price of the option, but not necessarily by the same amplitude.

Therefore, it is necessary to hold only the amount of the stock

necessary to duplicate the movement of the price of the option.

Blank closing bozu A bullish candlestick formation that consists of a

long blank bar (lower shadow).

Blank marubozu (shaven head) A bullish candlestick formation that

consists of a long blank bar (no shadows).

Blank opening bozu A bullish candlestick formation that consists of a

long blank bar (upper shadow).

Bollinger bands A quantitative method that combines a moving

average with the instrument's volatility. The bands were designed to

gauge whether the prices are high or low on a relative basis. They

are plotted two standard deviations above and below a simple

moving average. The bands look like an expanding and contracting

envelope model. When the band contracts drastically, the signal is

that volatility will expand sharply in the near future. An additional

signal is a succession of two top formations, one outside the band

followed by one inside. If it occurs above the band, it is a selling

signal. When it occurs below the band, it is a buying signal.

Book method Point-and-figure chart's original name.

Box spread A compound option strategy that consists of four options with a

common expiration date: a long call and a short put at one strike

price, and a long put and a short call at a different strike price.

Breakaway gap A price gap that occurs in the beginning of a new

trend, many times at the end of a long consolidation period. It may

also appear after the completion of major chart formations.

forexSwiss.com Глоссарий и специальные термины

ФОРЕКС. Электронное руководство для успешной торговли на валютном рынке 119

Breakout of a spread triple bottom A bearish point-and-figure chart

formation that suggests that the currency is likely to break a support

line the third time it reaches it. The currency failed to reach the

support line once.

Breakout of a spread triple top A bullish point-and-figure chart

formation that suggests that the currency is likely to break a

resistance line the third time it reaches it. The currency failed to

reach the resistance line once.

Breakout of a triple bottom A bearish point-and-figure chart formation

that suggests that the currency is likely to break a support line the

third time it reaches it.

Breakout of a triple top A bullish point-and-figure chart formation that

suggests that the currency is likely to break a resistance line the third

time it reaches it.

Bullish tasuki A bullish two-day candlestick combination. It consists

of a long black bar that has a high above 50 percent of the previous

day's long blank body, and closes marginally below the previous

day's low.

Bullish tsutsumi (the engulfing bar) A bullish two-day candlestick

combination. It consists of a second bullish candlestick whose body

"engulfs" the previous day's small bearish body.

Bundesbank The German central bank. In addition to its domestic

obligations, the Bundesbank has had international obligations since

1979 as the front player of the European Monetary System. The

Bundesbank is a very independent central bank.

Business firms (establishment) survey Survey of the payroll, workweek,

hourly earnings, and total hours of employment in the non farm

sector.

Business Inventories An economic indicator that consists of the items

produced and held for future sale.

Butterfly spread A compound option strategy that consists of a combination

of a bull spread and a bear spread, using either calls or puts.