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Backtesting
This is the process of looking at how a product would have performed in the past, based on actual historical data for the Underlying. Whilst it is not a prediction of the returns that can be achieved with a product, it can provide an indication of how the product might perform in the future, assuming that the future performance of the Underlying is similar to its historical performance. However, there is no guarantee that the future performance of an underlying will be similar to its past performance and therefore the results of backtesting should not be relied upon by investors to make investment decisions.

Banking Day
Days on which commercial banks are open for general business in London, which typically excludes any bank holidays and weekends or days on which the relevant stock exchanges are not functioning normally. Please also see Business Day.   

Barrier
Barriers are only relevant for Non-Protected products. A Barrier is the level of the Underlying (usually expressed as a percentage of its Start Level) that if breached, put the investors' capital at risk at Maturity. These are two different types of Barrier, and the difference between them is the frequency at which they are monitored. The two types of Barrier are 'American Barrier' and 'European Barrier'.

Base Prospectus
The legal document that provides the full details about the investment offered for sale to investors. This is different to the Brochure for a product, and you should ask your adviser if you wish to see a copy. Please note that Base Prospectuses are only available for Structured Investments. 

Bear/Bearish
This is a term used for investors who think the market will fall in value. 

Bond
A debt instrument, where the issuer promises to repay the holder on a fixed future date together with an interest amount (also knows as Coupon).

Brochure
The marketing document prepared for investors to help them understand how a product works and whether it is right for their needs. Typically, it will include details on how the return is calculated, when capital is at risk, key dates, information on the Underlying and Terms and Conditions.

Bull/Bullish
This is a term used for investors who think the market will rise in value.

Business Day
Days on which commercial banks are open for general business in London, which typically excludes any bank holidays and weekends or days on which the relevant stock exchanges are not functioning normally. Please also see Banking Day.

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