Purchasing Power Parity (PPP)

Arbitrage

Profiting from price differences of the same asset in different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

Basis Point

One hundredth of a percentage point (0.01%) — the unit used to describe rate changes.

Bear Market

A period when asset prices fall 20% or more from recent highs, usually with widespread pessimism.

Bid Price

The highest price a buyer is willing to pay for an asset.

Bid-Ask Spread

The gap between the highest buyer's price and lowest seller's price — a hidden cost of trading.