Trading Terms
Arbitrage
Arbitrage is the simultaneous buying and selling of an asset across different markets to profit from momentary price discrepancies with minimal market risk.
ATH (All-Time High)
An All-Time High (ATH) is the highest peak in price or market capitalization that a specific cryptocurrency has achieved in its trading history.
ATL (All-Time Low)
An All-Time High (ATH) is the highest peak in price or market capitalization that a specific cryptocurrency has achieved in its trading history.
Bagholder
A bagholder is an investor who continues holding a depreciating cryptocurrency asset despite significant losses or declining market value.
Bear Market
A bear market is a sustained decline in asset prices of 20% or more from recent highs, signaling low investor confidence and pessimistic market sentiment.
Bid-Ask Spread
The difference between the highest buyer price and lowest seller price for an asset.
Bitcoin ETF
A Bitcoin ETF is an exchange-traded fund that provides market exposure to Bitcoin.
Bull Market
A bull market is an extended period in financial or crypto markets characterized by sustained price growth, strong investor confidence, and high asset demand.
Buy Wall
A bagholder is an investor who continues holding a depreciating cryptocurrency asset despite significant losses or declining market value.
Candlestick
A candlestick chart visualizes price action using open, high, low, close bars with bodies colored by bullish/bearish movement.
Centralized Exchange (CEX)
A Centralized Exchange (CEX) is a platform managed by a single entity that facilitates crypto and fiat trading by acting as a custodial intermediary.
Dollar Cost Averaging
Buying fixed dollar amounts of an asset at regular intervals regardless of price.
Exchange
A cryptocurrency exchange is a digital platform that enables users to trade cryptocurrencies for fiat money or other digital assets.
FOMO
A bagholder is an investor who continues holding a depreciating cryptocurrency asset despite significant losses or declining market value.
Funding Rate
Periodic payments between long and short holders in perpetuals to keep contract price near spot.
HODL
HODL is a long-term passive strategy in cryptocurrency that involves holding assets despite extreme market volatility and price drawdowns.
Leverage
Use of borrowed capital to amplify a position beyond own equity.
Limit Order
An order to buy or sell at a specific price or better.
Liquidation
Forced closure of a leveraged position when margin balance falls below maintenance requirement.
Long Position
A bet that an asset price will rise.
Margin Trading
Trading with borrowed funds to amplify potential return and risk.
Market Capitalization
Market capitalization measures the total market value of an asset or crypto token, calculated by multiplying its current price by circulating supply.
Market Capitalization
Market capitalization measures the total market value of an asset or crypto token, calculated by multiplying its current price by circulating supply.
Market Maker
An entity continuously providing buy and sell quotes to ensure market liquidity.
Market Odds
Market odds are probabilities implied by prices in a trading or prediction market.
Market Order
An order to buy or sell immediately at the best available price.
Market Taker
A trader who fills an existing order from the order book, removing liquidity.
Open Interest
Open interest is the total value or count of active contracts that have not yet been settled or closed.
Order Book
A real-time list of buy and sell orders organized by price level.
Perpetual Futures
Derivative contracts with no expiry date tracking an asset price through a funding rate.
Prediction Market
A prediction market is a market where event-linked contracts trade at prices that can be read as market-implied probabilities.
Price Discovery
The process by which markets determine fair price through supply and demand.
Pump and Dump
A pump and dump is a manipulative scheme where bad actors artificially inflate a crypto asset's price through hype before selling off holdings for profit.
Short Position
A bet that an asset price will fall.
Slippage
Slippage is the difference between the expected price of a crypto trade and the actual price at which the order is executed.
Stop Loss
An order to sell an asset at a specified price to limit potential losses.
Take Profit
An order to sell at a target price to lock in gains.
Wash Trading
Buying and selling the same asset to generate artificial trading volume.
Whale
A whale is an investor or entity holding a very large amount of cryptocurrency, capable of influencing market prices.
Zero Confirmation
A transaction that has been broadcast to the blockchain network but has not yet been included in a block by miners.