Backwardation is a term used on the commodity markets. It refers to a price structure in which the price of a current futures contract is higher than the price of a futures contract with a more distant delivery date (antonym: “contango”).

Bar chart

The bar chart is a graphical representation of the price development in which the fluctuation of the prices of each day is represented by a vertical bar. It displays lows, highs, opening prices and closing prices. This helpful illustration enables investors to clearly see the level of volatility and identify changes in the supply and demand situation.


For barrier products, the barrier is a predetermined price level that may not be reached or breached. If this barrier is breached, a barrier event takes place. For example, the holder of a bonus certificate may lose its claim to payment of the bonus amount.

Barrier warrant

Barrier warrants are exotic options whose option right is either activated or lapses if the underlying is
greater or less than predetermined barriers.


Investment products are not always based on a single underlying but can participate in a  basket with various different underlyings such as equities, indices or commodities. The composition of the basket is determined by the issuer before launching the product. A static or passive basket is one whose components and weighting is not changed during the term of the product. An active basket is one in which the issuer may change the weighting of the individual components or vary the composition of securities in the basket.


The bear symbolises falling prices on the stock markets. One explanation for the expression is the downward swipe of a bear’s paws as it lashes out. Investors who expect falling prices are named “bears”.


An investor with bearish expectations generally anticipates that prices will fall.


The bid price, or bid, is the name for the price at which the investor is willing to buy a security. The bid price is always below the ask price.

Bid-ask spread

The bid-ask spread is the difference between the buying and selling price of a security. The bid-ask spread is one of the key indicators of quality when choosing a trading platform. The narrower it is, the lower the implicit costs for investors when buying and selling securities. For bonds, the spread is also a measure of the premium or discount on a reference interest rate (e. g. EURIBOR), the size of which depends on the creditworthiness and market position
of the respective debtor.

Binomial model

A valuation model for options or American warrants designed by John Carrington Cox, Stephen Alan Ross and Mark Edward Rubinstein (1979). It is one of three valuation models used to determine the theoretical value of an option. The others are the Black-Scholes model and the analytical approximation method.

Black-Scholes model

Valuation model that calculates the theoretical fair value of a European option (i. e. one that can only be exercised at a specified time) on the basis of equities. It was developed by Fischer Black and Myron Samuel Scholes in 1973.

Blue chips

Blue chips refers to the shares of major, internationally known companies with a large share of the stock exchange’s overall turnover and whose prices are also included in the calculation of common indices.


In order to raise capital issuers such as companies, financial institutions, countries or federal states issue securities on the bond market called notes, bonds or Pfandbriefe. The buyer of such a debt security is the creditor and the issuer the debtor obliged to pay interest payments and redeem the bond at its nominal value. Bonds are distinguished from one another by different maturities, currencies and the type of interest payment to be provided by the debtor.

Bonus amount

Amount paid for bonus certificates if the barrier is not breached during the observation period and the price of the underlying on the valuation date is below the bonus level.

Bonus level

Price threshold is above the barrier. The bonus amount is paid if the price of the underlying is  less than the bonus level on the valuation date and the barriers have not been breached at any  point during the term of the certificates / the observation period. If the price of the underlying is greater than the bonus level on the valuation date, the investor participates in increases in the value of the underlying (up to any agreed cap).


Optimists are described on the stock exchange as bulls. The bull is associated with rising prices because it attacks by thrusting its horns upwards. The opposite is the bear which wipes its paws downwards symbolising falling prices.


An investor with bullish expectations generally anticipates that prices will rise.


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