Category: B

  • Bear Vertical Spread

    ResourcesSee AlsoBear Spread Futures Trading Consumer Protection Consumer Finance

  • Bear Spread

    Concept of Bear Spread in Futures TradingIn this context of financial law, the following are some alternative definitions of Bear Spread: (a) A strategy involving the simultaneous purchase and sale of options of the same class and expiration date, but different strike prices. In a bear spread, […]

  • Bermudan Option

    Concept of BermudAn option (i.e. the right to buy or sell a financial instrument at some agreed conditions) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed […]

  • Broad-Based Security Index

    Concept of Broad-Based Security Index in Futures TradingIn this context of financial law, the following is a definition of Broad-Based Security Index: Any index of securities that does not meet the legal definition of narrow-based security index.

  • Bunched Order

    Concept of Bunched Order in Futures TradingIn this context of financial law, the following is a definition of Bunched Order: A discretionary order entered on behalf of multiple customers.

  • Backwardation

    Concept of Backwardation in Futures TradingIn this context of financial law, the following is a definition of Backwardation: Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for January is $360.00 per ounce and […]

  • Basis Point

    Concept of Basis Point in Futures TradingIn this context of financial law, the following is a definition of Basis Point: The measurement of a change in the yield of a debt security. One basis point equals 1/100 of one percent.

  • Banging the Close

    ResourcesSee AlsoMarking the Close Futures Trading Consumer Protection Consumer Finance

  • Black-Scholes Model

    Concept of Black-Scholes Model in Futures TradingIn this context of financial law, the following is a definition of Black-Scholes Model: An option pricing model initially developed by Fischer Black and Myron Scholes for securities options and later refined by Black for options on futures.

  • Bust

    Concept of Bust in Futures TradingIn this context of financial law, the following is a definition of Bust: An executed trade cancelled by an exchange that is considered to have been executed in error.

  • Bid-Offer Spread

    Concept of Bid-Ask Spread or Bid-Offer Spread in Futures TradingIn this context of financial law, the following is a definition of Bid-Ask Spread or Bid-Offer Spread: The difference between the bid price and the ask or offer price..

  • Bull

    Concept of Bull in Futures TradingIn this context of financial law, the following is a definition of Bull: One who expects a rise in prices. The opposite of bear. A news item is considered bullish if it is expected to result in higher prices.

  • Basis

    Concept of Basis in Futures TradingIn this context of financial law, the following is a definition of Basis: The difference between the spot or cash price of a commodity and the price of the nearest futures contract for the same or a related commodity (typically calculated as cash minus […]

  • Bear Market

    Concept of Bear Market in Futures TradingIn this context of financial law, the following is a definition of Bear Market: A market in which prices generally are declining over a period of months or years. Opposite of bull market.

  • Basket

    Basket OptionConcept of Basket Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) on the weighted average of several underlying […]