What is 'Balance Of Trade - BOT' The balance of trade (BOT) is the difference between a country's imports and its exports for a given time period. The balance of trade is the largest component of the...
DefinitionBack taxes is a term for taxes that were not completely paid when due. Typically, these are taxes that are owed from a prior year. Back Taxes What is 'Back Taxes' Taxes that have been unpaid in...
DefinitionBacktesting is a term used in modeling to refer to testing a predictive model on historical data. Backtesting is a type of retrodiction, and a special type of cross-validation applied to previous time period. Backtesting What is 'Backtesting'...
What is 'Back-Of-The-Envelope Calculation' An informal mathematical computation, often performed on a scrap of paper such as an envelope. A back-of-the-envelope calculation uses estimated and/or rounded numbers to quickly develop a ballpark figure. The result should be...
DefinitionA binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The...
What is a 'Bailout' A bailout is a situation in which a business, an individual or a government offers money to a failing business to prevent the consequences that arise from the business's downfall. Bailouts can take...
What is a back up and what does it mean for the securities market
A back up is a slang term for the movement in spread, price or yield of a security, which makes it more expensive to issue. A...
What is 'Back Fee' A payment made to the writer of a compound option in the case that the call option is exercised in order to obtain a put option. Back fee is a premium charged at...
DefinitionNormal backwardation, also sometimes called backwardation, is the market condition wherein the price of a commodities' forward or futures contract is trading below the expected spot price at contract maturity. The resulting futures or forward curve would typically be...
What is balance reporting and why is it important for businesses
Balance reporting is the process of creating a financial report that provides an overview of a company's assets, liabilities, and equity. This type of report is important for businesses...