TradeReply Education Center
Your go-to resource for understanding key financial terms and concepts.
BENCHMARK COMPARISON (PERFORMANCE VS INDEX)
Benchmark Comparison evaluates an investment's performance against a market index. It helps determine if the investment is outperforming, underperforming, or matching the benchmark.
BETA (MARKET VOLATILITY EXPOSURE)
Beta measures an investment's volatility relative to the market. A beta above 1 indicates higher volatility than the market, while a beta below 1 indicates lower volatility.
BITCOIN
Bitcoin is the first and most widely recognized cryptocurrency, created by an anonymous person or group known as Satoshi Nakamoto, using a decentralized ledger technology called blockchain.
BITCOIN CASH
Bitcoin Cash is a fork of Bitcoin created to increase transaction speed and scalability.
BLACK-SCHOLES MODEL
Black-Scholes model is a mathematical model used to price options by determining the theoretical value of European-style options.
BLOCKCHAIN
Blockchain is a decentralized, distributed digital ledger that records transactions across many computers in a way that the registered transactions cannot be altered retroactively.
BLUE CHIP STOCKS
Blue chip stocks are shares in large, reputable, and financially sound companies with a history of reliable performance.
BOND YIELD
Bond yield is the amount of return an investor realizes on a bond, often expressed as a percentage.
BOOK VALUE
Book Value represents the net value of a company’s assets after deducting liabilities, providing insight into its intrinsic worth.
BORROWED AMOUNTS FOR TRADE
Borrowed Amounts for Trade is the total amount borrowed from brokers to fund trading activities. It includes margin debt, margin call obligations, and other broker-provided borrowing mechanisms.
BREAK-EVEN ANALYSIS
Break-Even Analysis determines the point at which total revenue equals total costs, resulting in neither profit nor loss. It helps traders understand the minimum performance needed to cover expenses and achieve profitability.
BROKER FEES
Broker Fees are unpaid charges, such as trading commissions or account fees. These reduce account equity until resolved and must be managed to avoid impacting available funds.
BULL MARKET
Bull market is a market condition characterized by rising prices of securities, typically marked by investor confidence, optimism, and expectations of strong future financial performance.
BULLISH
Bullish describes a sentiment or market condition where investors expect prices to rise, leading to buying and upward price movement.
BURN ADDRESS
Burn address is a public address to which coins are sent and cannot be spent because the private key is unknown.
BYZANTINE FAULT TOLERANCE
Byzantine fault tolerance is the ability of a distributed network to reach consensus even when some nodes fail or act maliciously.
CALL OPTION
Call option is a financial contract that gives the holder the right, but not the obligation, to buy a security at a specified price within a specific time period.
CALMAR RATIO
Calmar Ratio measures risk-adjusted return by comparing the annualized return to the maximum drawdown, providing insights into performance relative to worst-case losses. A higher Calmar Ratio indicates better performance relative to risk.
CANDLESTICK PATTERN
Candlestick pattern is a style of financial chart used to describe price movements of a security, derivative, or currency, formed by the opening, high, low, and closing prices of an asset.
CAPITAL ALLOCATION EFFICIENCY (CAE)
Capital Allocation Efficiency (CAE) measures how effectively allocated capital contributes to realized profits, balancing risk and reward. It reflects the efficiency of position sizing and capital utilization in achieving desired outcomes.
CAPITAL GAINS
Capital gains are the profit realized when a capital asset is sold for a price higher than its purchase price.
CAPITAL GAINS TAX
Capital gains tax is a tax on the profit from the sale of property or an investment.
