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TRADER’S GLOSSARY

A

Ask
The price at which a security, commodity or currency is offered for sale on the market. Also known as the offer. The ask price is one parameter that is used when calculating the spread and the expiry level of an asset
Ask Price
The price for which the market maker will sell the base currency.
Asset/Underlying Asset
Any good that has an underlying exchange value.
At-the-Money (ATM)
An option whose exercise or strike price is equal to the current market price of the underlying asset.
Available Margin
The actual funds which are available for trading in the account (not associated with any open position).

B
Balance
The total amount of funds available in your trading account, excluding P&L (profits and losses) of presently open positions.
Bid Price
The price for which the market maker will buy the base currency.

C
Confirmation of transaction
Confirmation of transaction is the procedure automatically executable by the network of Bitcoin or other cryptocurrency during realization of payment. During the sending of payment, the several of the arbitrarily of chosen computers confirm authenticity of transaction. After that, It is considered as actual.
Crowdsale
Crowdsale is a primary tokens purchase of the future cryptocurrency to the exit on ICO.
Cryptography
Cryptography is the use of math for creation codes and encryptions on purpose to hide information. Used as basis for the mathematical tasks which are used for confirmation of bitcoins transactions.
Commodities
Raw materials or primary agricultural products that can be bought and sold, such as oil, gold, copper, coffee, etc.
Current Price
The current market price for an underlying asset. Once the position has been opened, the current price becomes the strike price. Current prices of assets are determined objectively by real-time data providers.

E
Entry Rate/Strike Price
The price at which a specific derivative contract can be exercised.
Equity
The existing balance in your trading account, including P&L (profit and loss) of all open positions.
Expiry time
The precise time at which the position closes. The expiry time is an extremely important and decisive factor in the outcome of position. It is absolutely vital for a trader to understand and plan the timeframes with which they are planning to trade.

F
Farm
Farm is one or more devices that mine cryptocurrencies.
Fiat
Fiat is the real paper money supported by government responsibilities.
Forex
The foreign exchange market. It is the over-the-counter market in which the foreign currencies of the world are traded in pairs, such as GBP/USD, EUR/USD, USD/CHF, etc. It is considered the largest and most liquid market in the world.
Fundamental Analysis
A method of evaluating the performance of a financial asset in an attempt to measure its intrinsic value, by examining related economic, financial, and other qualitative and quantitative factors.

G
GTC (Good-Till-Cancelled) Order
A type of limit order that is active until it is fulfilled or cancelled. As opposed to a day order, a GTC order can remain active for an indefinite number of trading sessions.

H
Hardfork
Unlike softfork this is the creation of new cryptocurrency that is absolutely independent and fully dissociated from its “ancestor”.
Hashrate
Hashrate is the index of your farm efficiency at mining.

I
ICO
ICO is a stage of exit of cryptocurrency on a public exchange.
If Done Order
An “If Done Order” consists of two separate orders: a primary order, that will be executed as soon as market conditions allow it, and a secondary order that will be activated only if the first order is executed.
Indices
Statistical measure of change in a securities market, such as S&P500, DAX30, DJIA, etc.

L
Leverage
The ability to hold an investment position of greater value than your equity. Leverage is usually represented in ratios.
Limit Order
Commonly used to enter a market and to take profit at predefined levels. Limit order enables you to predetermine the price at which you wish to buy or sell an underlying asset.

M
Maintenance Margin
The minimum account value an investor is required to maintain to continue holding one or more futures contracts.
Margin Call
A situation where your equity falls below the required “Maintenance Margin”. When that happens, you are subjected to a margin call to remedy the situation. In order to avoid having your positions closed for you, it is better to either close or reduce open positions or send additional funds to cover your positions.
Margin Usage
A term used to describe the percentage of the entire equity that you are currently using in your open positions. It is extremely vital to prearrange your margin usage before you plan your trading strategies.
Mining
Mining is a stage of the cryptocurrency monetization process.

 

O
Open P&L
Displays the total unrealized profit and loss figures for the open positions in your trading account.
Order Execution
The completion of a buy or sell order for a financial asset. The execution of an order happens when it is completely filled, rather than when it is placed by the investor.

P
PIP
A PIP (Point in Percentage) is the smallest price movement that a given exchange rate makes based on changing market conditions.
Position
Any form of investment in a currency pair, stock, commodity or index. A position can be either flat, long or short, profitable or unprofitable, depending on market movements.

R
Rollover
A situation where a position is held after the market closes. Consequently, it “rolls over” to the next value date, what causes it to acquire a swap charge or credit.

S
Satoshi
Satoshi is the name of bitcoin creator Satoshi Nakamoto. And also it is the smallest part of bitcoin, that cannot be divided.
Spread
Traditionally represented in pips, it is the price difference between where a trader may purchase or sell an underlying asset.
Stock
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings (Intel, Twitter, Coca-Cola, etc.)

T
Technical Analysis
An analysis method (methodology) used for evaluating an underlying financial asset by examining the statistical data related to its historic performance.
Trading Hours
The period between the starting time and ending time of each and every market and asset when a trade can be performed.
Trend
Relates to the general movement or direction of a market or of the price of an asset. Trends may vary in length from short, to intermediate, to long term.