B — Trading Terms Starting With B
Learn common trading terms beginning with B, including backtesting, market direction, order prices, breakouts, brokerage costs, account value, and available trading capital.
Trading terms beginning with B
Select a card for the complete definition, purpose, usage, example, journal workflow, common issues, and FAQs.
Backtesting
Backtesting is the process of applying a fixed trading strategy to historical market data to estimate how the rules might have performed in the past. It helps traders study trade frequency, win rate, drawdown, expectancy, and market-condition sensitivity before risking real capital.
Read full definitionBear Market
A bear market is a prolonged period of declining asset prices, weak sentiment, and reduced investor confidence. Although a 20% decline from a major peak is commonly used as a practical reference, market structure, duration, and economic context also matter.
Read full definitionBid Price
The bid price is the highest price a buyer is currently willing to pay for an asset. Traders usually receive the bid price when selling an asset or closing a long position with a market order.
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A breakout occurs when price moves beyond an established support, resistance, range, trendline, or chart pattern. Traders often look for confirmation through a candle close, volume expansion, momentum, or a successful retest.
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Breakeven price is the price at which a trade or investment produces no net profit or loss after accounting for entry cost, commissions, taxes, spread, financing charges, and other expenses.
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A broker is a company or platform that provides access to financial markets and executes orders on behalf of traders and investors. Brokers may also provide leverage, research, account statements, risk tools, and trading software.
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Brokerage is the fee charged by a broker for executing trades or providing market access. It may be a flat fee, a percentage of transaction value, a per-contract charge, or part of a wider spread.
Read full definitionBull Market
A bull market is a prolonged period of rising asset prices, improving sentiment, and strong demand. It is often associated with higher highs, higher lows, increasing participation, and confidence in economic or corporate growth.
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Buying power is the amount of capital available in a trading account for opening new positions. It may equal available cash or be increased through broker-provided margin and leverage.
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