Financial Glossary

Bollinger Bands®

A chart indicator used in technical analysis to measure market volatility, consisting of a single moving average and two standard deviation bands.

Breakout trading

Trading strategies that recommend entering CFD trades once the price breaks through a defined resistance or support level. New ‘buy’ positions are entered into when the price breaks through a resistance level, while new ‘sell’ positions are entered into when the price breaks through a support level. These strategies are based on the view that once the price breaks through a support or resistance level, a new trend is likely to begin.

Broker

An individual or firm acting as an intermediary to bring together buyers and sellers, typically usually for a small commission or fee.

Bull market

A market distinguished by rising prices. Bullish investors have a positive opinion about a market, believing that prices will continue to rise.

Bullion

Precious metals such as gold, silver, platinum or palladium in the form of bars or ingots.

Bundesbank

Central bank of Germany.

Buy limit order

A conditional trading order that indicates a security may be purchased only at the designated price or lower. Also see Take-profit order.

Buy position

A position in the market that would profit from a rising market price, or make a loss should prices fall.

Buy stop-entry order

When you buy a security that is entered at a price above the current offer price. It is triggered when the market price touches or goes through the specified stop price.