What is TP/SL?
Take profit and Stop Loss, they are numeric values where you either procure profits or prevent further losses respectively.
What is FOMO? - Fear of missing out.
What is FUD? - FUD is Fear, Uncertainty, and Doubt (often spread on social media or mass media). FUD can cause the price of a coin to drop, not based on fundamentals or charts, but based on bad news that spreads around social media. Many times the bad news isn’t substantiated or grounded in reality, and instead ends up being something silly like a popular talking head’s opinion that Bitcoin is a bubble. The fear, uncertainty, and doubt-inducing idea being spread around media can be referred to as FUD.
What is liquidation? - Liquidation happens when your Margin Balance falls below the required Maintenance Margin of your position.
- Meaning you'll lose the amount of margin (your money) used on that position if your liquidation price is hit.
- We recommend using Isolated Margin.
- To avoid this you should always have a stop loss in place for risk management.
What is BE?
Break-even, meaning 0 loss or profit.
What is funding when trading futures?
Funding rates are periodic payments either to traders that are long or short based on the difference between perpetual markets and spot.
- Depending on open positions, traders will either pay or receive funding.
- Negative funding means Short positions pay Long positions. Positive funding means Longs pay Shorts.
What is Leverage? - In trading, traders often get to borrow additional funds from an exchange or a broker when trading derivatives, in order to trade underlying assets with the desired exposure. This means you can get leverage on an initial capital that you own. Essentially, leveraging or margin trading allows for opening a trading position with more capital.
Let’s say you want to buy Bitcoin futures expiring 2 months from now, and you have $1000 on your account. But you want to trade Bitcoin with more exposure than the $1000 you have. Let’s say you’re on a margin crypto trading platform, and you borrowed $9000 from an exchange or a broker. In total then, you have $10,000 to trade Bitcoin with. Now you get a much larger exposure to the underlying asset.
With that ratio, you have a 10x leverage, i.e., the actual exposure that you have into Bitcoin would be 10 times your initial capital. You would buy Bitcoin worth $10,000 while your own capital is only $1000. For this post, let’s assume that the cost of one Bitcoin is exactly $10,000. So your capital along with its leverage would enable you to purchase one complete Bitcoin.
Who are whales?
Traders with a very huge capital, who in-fact can manipulate the market for their own profits.
What is an ATH?
ATH stands for ALL-TIME-HIGH, meaning, it's the highest price value a coin has seen till its current state.
What is TA?
Technical analysis, when people study charts/trends/patterns to predict the price of a coin or its movement, it's called TA.
What is a market order?
It's a buy/sell order at the current price of the coin.
What is mining?
Cryptocurrency mining, or cryptomining, is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. Miners are paid for mining using their resources
What is a public key?
This is your wallet address, you shall provide this address to the person who wants to deposit money into your wallet.
What is a private key?
This is like your password, it can lock/unlock your wallet and approve transactions. Do Not Share This With Anyone.
What is TBD?
To be declared/ To be determined.
What is a long?
When you take a long position on an asset, you’re buying it outright, which means your profit relies on it increasing in value.
What is a short?
When you borrow an asset and then sell it, once the price of the asset decreases, you shall profit. Vice versa applies for both longs and shorts.
What is arbitrage?
It's the process of purchasing an asset from one exchange and selling it on a different exchange, in order to exploit their price difference.
What is DCA?
Dollar cost averaging.
What is an ICO?
Initial coin/token offering, It's the sale of a coin at its base price before it is fully released.
What is a hardware wallet?
A secure piece of hardware designed to keep wallet information secure.
What is a blockchain?
A digital ledger in which transactions made in a cryptocurrency are recorded chronologically and publicly.
What is FIAT money?
Fiat money is any money that is accepted by a government for paying taxes or debt, but is not pegged to or backed directly by gold and other valuables.
For example-> $ or £
What is a correction?
When you have a company and you believe the company will make profits or expand its business, you speculate in what a part of that company is worth. You buy a part and then you follow the company on a quarterly basis. If it’s not going the right way, you might correct your estimate. When a lot of people do this, the market goes through a “correction”.
Take profit and Stop Loss, they are numeric values where you either procure profits or prevent further losses respectively.
What is FOMO? - Fear of missing out.
What is FUD? - FUD is Fear, Uncertainty, and Doubt (often spread on social media or mass media). FUD can cause the price of a coin to drop, not based on fundamentals or charts, but based on bad news that spreads around social media. Many times the bad news isn’t substantiated or grounded in reality, and instead ends up being something silly like a popular talking head’s opinion that Bitcoin is a bubble. The fear, uncertainty, and doubt-inducing idea being spread around media can be referred to as FUD.
What is liquidation? - Liquidation happens when your Margin Balance falls below the required Maintenance Margin of your position.
- Meaning you'll lose the amount of margin (your money) used on that position if your liquidation price is hit.
- We recommend using Isolated Margin.
- To avoid this you should always have a stop loss in place for risk management.
What is BE?
Break-even, meaning 0 loss or profit.
What is funding when trading futures?
Funding rates are periodic payments either to traders that are long or short based on the difference between perpetual markets and spot.
- Depending on open positions, traders will either pay or receive funding.
- Negative funding means Short positions pay Long positions. Positive funding means Longs pay Shorts.
What is Leverage? - In trading, traders often get to borrow additional funds from an exchange or a broker when trading derivatives, in order to trade underlying assets with the desired exposure. This means you can get leverage on an initial capital that you own. Essentially, leveraging or margin trading allows for opening a trading position with more capital.
Let’s say you want to buy Bitcoin futures expiring 2 months from now, and you have $1000 on your account. But you want to trade Bitcoin with more exposure than the $1000 you have. Let’s say you’re on a margin crypto trading platform, and you borrowed $9000 from an exchange or a broker. In total then, you have $10,000 to trade Bitcoin with. Now you get a much larger exposure to the underlying asset.
With that ratio, you have a 10x leverage, i.e., the actual exposure that you have into Bitcoin would be 10 times your initial capital. You would buy Bitcoin worth $10,000 while your own capital is only $1000. For this post, let’s assume that the cost of one Bitcoin is exactly $10,000. So your capital along with its leverage would enable you to purchase one complete Bitcoin.
Who are whales?
Traders with a very huge capital, who in-fact can manipulate the market for their own profits.
What is an ATH?
ATH stands for ALL-TIME-HIGH, meaning, it's the highest price value a coin has seen till its current state.
What is TA?
Technical analysis, when people study charts/trends/patterns to predict the price of a coin or its movement, it's called TA.
What is a market order?
It's a buy/sell order at the current price of the coin.
What is mining?
Cryptocurrency mining, or cryptomining, is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. Miners are paid for mining using their resources
What is a public key?
This is your wallet address, you shall provide this address to the person who wants to deposit money into your wallet.
What is a private key?
This is like your password, it can lock/unlock your wallet and approve transactions. Do Not Share This With Anyone.
What is TBD?
To be declared/ To be determined.
What is a long?
When you take a long position on an asset, you’re buying it outright, which means your profit relies on it increasing in value.
What is a short?
When you borrow an asset and then sell it, once the price of the asset decreases, you shall profit. Vice versa applies for both longs and shorts.
What is arbitrage?
It's the process of purchasing an asset from one exchange and selling it on a different exchange, in order to exploit their price difference.
What is DCA?
Dollar cost averaging.
What is an ICO?
Initial coin/token offering, It's the sale of a coin at its base price before it is fully released.
What is a hardware wallet?
A secure piece of hardware designed to keep wallet information secure.
What is a blockchain?
A digital ledger in which transactions made in a cryptocurrency are recorded chronologically and publicly.
What is FIAT money?
Fiat money is any money that is accepted by a government for paying taxes or debt, but is not pegged to or backed directly by gold and other valuables.
For example-> $ or £
What is a correction?
When you have a company and you believe the company will make profits or expand its business, you speculate in what a part of that company is worth. You buy a part and then you follow the company on a quarterly basis. If it’s not going the right way, you might correct your estimate. When a lot of people do this, the market goes through a “correction”.
