Trading Terms to familiarize with... [Diction- CryptoBeats - Vaporwave]

Knowledgebase 🔥

[Trading definitions]

#Arbitrage (Arbing) – The act of purchasing coins on one exchange and selling them on another. This is usually done to exploit a price difference between exchanges.

#Bear Market – A prolonged downward trend of a traded commodity. This is the opposite of a bull market.

#Bull Market – A prolonged upward trend of a traded commodity. This is the opposite of a bear market.

#Correction - A correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset.

#Liquidation - Most exchanges employ a policy of forced liquidation in the event your collateral does not cover your current loss on margin trades. What this means is that your loan/margin will be closed and the collateral is used to pay the loss.

#Long Position (A long) - Making a purchase with the hope that the item will increase in value so it can be sold for a profit. This is what most investors do.

#Margin Short (Shorting) - This is the act of selling something that you’ve borrowed with the hope of being able to buy it back later at a lower price.

#Margin Trading – Trading on money that has been loaned to you by an exchange. A deposit of capital must be placed to receive said loan.

#Market Order - Placing either a buy or a sell order on the market with no regard for price. The market will buy or sell $x.xx/yy eth, for the best price currently available.

#Technical Analysis (TA) - financial analysis that uses patterns in market data to identify trends and make predictions.

#Stop Buy - An order which is triggered by the act of a traded commodity going above a price set by the trading party.

#Trade Volume - This is the amount of trade done on a currency.It is an important metric as it can show you the amount of interest there is versus other coins. It also shows that trade is actually being done with the currency.

#Stop Loss - An order which is triggered by the act of a traded commodity falling below a price set by the trading party.

#Volatility - This refers to how often the price of a currency is changing. The opposite of volatile is stable.

#Whales - Traders with massive amounts of the currency being traded. They are able to sell and buy in quantities large enough to manipulate the market price in the short term.

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