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.


CryptoBeat of the Day:

twanz - stevie wonderin'

https://soundcloud.com/twanzie/stevie-wonderin




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