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Glossary

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Backorder

A backorder is a customer order for a product that is temporarily out of stock but will be fulfilled once the item becomes available.

Backstop

Backstop: a net or fence behind the catcher that stops errant balls, protecting spectators and players; sizing, durability and setup considerations.

Backtesting

Backtesting is evaluating a trading strategy on historical data to gauge returns, risk, and robustness, accounting for costs, drawdowns, and overfitting.

Bag

Bag in trading is the amount of a specific crypto an investor holds, with value driven by token price, market cap, volume, and circulating supply.

Bagholder

Bagholder: an investor who holds a plunging stock hoping it rebounds, driven by biases like sunk cost, with causes, meme stock risks, and ways to avoid it.

Bail-In

Bail-in: a bank rescue that imposes losses on creditors and uninsured depositors by converting debt to equity, recapitalizing without taxpayer bailouts.

Bait and Switch Scam

A bait and switch scam advertises a low price to draw shoppers, then pressures them to buy a pricier item. Learn warning signs and how to avoid it.

Bakers

Tezos bakers are validators who stake XTZ to validate transactions, create blocks, earn rewards, and help secure and govern the network.

Balanced Fund

Balanced fund: a mutual fund investing in stocks and bonds to balance growth and income, offering moderate risk through diversified allocation.

Balloon loan

Balloon loan: a not fully amortizing loan with low monthly payments and a large final balloon payment, common in mortgages, auto, and business lending.

Balloon payment

A balloon payment is a large lump sum due at the end of a loan after smaller monthly payments, often interest-only; common in mortgages and auto loans.

Bank Identifier Code (BIC)

A Bank Identifier Code (BIC) is an 8–11 character SWIFT code that identifies a bank for international payments and works with IBAN for correct routing.

Bank or International Settlements (BIS)

Bank for International Settlements (BIS): the central bank for central banks, promoting global monetary stability, banking standards, and cooperation.

Bar chart

Bar chart: a graph using rectangular bars to compare category values. Covers vertical, horizontal, stacked and grouped types, plus tips for clear design.

Basis Point (bps): Definition, Formula, and Examples

A basis point (bps) equals 0.01%, or one hundredth of a percent. Learn how to convert between basis points and percentages, with examples from rates and fees.

Basket

A crypto basket groups multiple cryptocurrencies into one product for diversified exposure with a single trade, and how basket trading in crypto works.

Bayes theorem

Bayes' Theorem is a fundamental concept in probability theory and statistics that describes how to update the probability of a hypothesis based on new evidence.

Beacon chain

Beacon Chain: the Ethereum Beacon Chain is the Proof of Stake consensus layer coordinating validators, securing the network, and enabling shard chains.

Bear Call Spread

Bear call spread: an options strategy selling a lower-strike call and buying a higher-strike call for a net credit, suited to neutral or bearish views.

Bear Hug

Bear hug: an unsolicited premium takeover offer in M&A that pressures a target’s board to accept; mechanics, strategy, and shareholder impact.

Bear Trap

Bear trap: a false bearish signal that lures traders into shorting before a sharp reversal, common in crypto and stocks; key signs and risk controls.

Benchmark Index

Benchmark index: a standard used to measure a mutual fund or portfolio's performance versus the market, guiding risk assessment and asset allocation.

Beneficiary

Beneficiary: a person or entity named to receive assets from a will, trust, insurance policy, or retirement plan upon death; primary and contingent types.

BEP-20

BEP-20 is a token standard on Binance Smart Chain (BSC) that governs token creation, transfers, and dApp compatibility, with low gas fees paid in BNB.

Best execution

Best execution is brokers' duty to obtain the best terms for client orders, with trading best execution practices, factors, and FINRA/SEC rules.

Beta release

Beta release: a pre-release version shared with external users after alpha to gather feedback, fix issues, and validate stability before final launch.

Bid-Ask Spread

Bid-ask spread: the gap between the highest bid and lowest ask, signaling market liquidity and transaction costs, with formula, example, and factors.

Bid-ask spread analysis

Bid-ask spread analysis: the study of the price gap between bid and ask, signaling liquidity and trading costs, and how limit orders help manage risk.

Bid price

Bid price is the highest price a buyer will pay for a security, shaping the bid-ask spread, liquidity, market makers, and order execution.

Binance launchpad

Binance Launchpad is Binance's token launch platform for IEOs, where users commit BNB for fair token distribution and early access to new projects.

Bin Code

Bin code: the Bank Identification Number, the first 4–6 digits of a card, identifies the issuer, routes authorization, and helps prevent fraud.

Bitcoin NFTs

Bitcoin NFTs are non-fungible tokens inscribed on Bitcoin via the Ordinals protocol, enabling unique, verifiable digital assets secured by the network.

Bitcoin Pizza

Bitcoin Pizza: the first real-world Bitcoin purchase on May 22, 2010, when Laszlo Hanyecz paid 10,000 BTC for two pizzas, celebrated as Bitcoin Pizza Day.

Bitcointalk

Bitcointalk is a Bitcoin and cryptocurrency forum founded by Satoshi Nakamoto in 2009, hosting discussions, ANN posts, bounties, and project updates.

BitLicense

BitLicense is New York's NYDFS license regulating virtual currency businesses, setting capital, cybersecurity, and AML standards to protect consumers.

Bits

Bits, short for binary digits, are the smallest unit of data, representing 0 or 1 and forming the basis of computing, storage, and digital communication.

Black Hat Hacker

A black hat hacker is a cybercriminal who exploits vulnerabilities for personal or financial gain, using malware, DDoS, and social engineering.

Black-Scholes Model

Black-Scholes model: a mathematical framework for pricing European options using stock price, strike, time, risk-free rate, and implied volatility.

Black swan event

Black swan event: an unpredictable, rare market shock with severe impact and hindsight bias, plus preparation via diversification and risk management.

Blockchain Node Integration

Blockchain node integration is connecting and configuring nodes to enable secure data exchange, transaction validation, and scalable network performance.

Block Height

Block height refers to the number of blocks preceding a particular block in a blockchain, starting from the genesis block.

Block reward

Block reward is the payout miners earn for adding a new block, combining the block subsidy and transaction fees; it halves over time in Bitcoin.

Block Size

Block size is the amount of data a block can hold, affecting throughput, fees, and latency in blockchain and storage efficiency in file systems.

Block Trade

Block trade: a large, privately negotiated order executed off-exchange (often OTC in crypto) to minimize price impact and enhance privacy and execution.

Bonding Curve

A bonding curve is a pricing function linking a token's price to supply in DeFi, powering AMMs and issuance to manage liquidity and distribution.

Brian Armstrong

Brian Armstrong is the co-founder and CEO of Coinbase, a key figure in crypto who led its 2021 Nasdaq listing and champions broader blockchain adoption.

Bridge liquidity

Bridge liquidity is a link between trading platforms and multiple liquidity providers, enabling tight spreads, low latency, and efficient order execution

Bridges

A blockchain bridge is a protocol that moves assets and data between blockchains for cross-chain interoperability. Includes types, how it works, risks, fees.

Bubble (crypto)

Crypto bubble: a speculation-driven price surge that crashes as markets correct; this entry covers anatomy, ICO role, impact, and tracking.

Bulk Settlements: How They Work and When to Use

Bulk settlement is settling multiple transactions at once to streamline operations, cut fees, and improve cash flow for high-volume businesses.

Bull Trap

Bull trap definition: a false breakout above resistance that lures buyers before price reverses. See signs, examples, and tips to avoid it.

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