Broker
A person who charges commission for executing a transaction (buy or sell) order.
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B
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Backspread
A spread where more options (calls or puts) are bought than sold. (the opposite of a Ratio Spread).
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Bond
A debt financial instrument used by Governments and corporate entities in order to raise capital. The bond obliges the organization
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Blow off Top
A large rise in price followed by a quick drop. Often accompanied with high volume. Usually a technical indicator for
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Bid – Ask Spread
The difference between the bid and asked prices. Generally you will buy at the Ask and Sell at the Bid.
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Bid
The price the trader sells at and the price that market makers and floor traders are willing to buy at.
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Bear Put Spread
A net debit spread only using puts where the trader buys a higher strike put and sells a lower strike
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