Basics in trading cryptocurrency by k-inesse
Greetings to the steemit community and wish you a cute continuation of the week. I wish to make this post to define some basic terms in trading. Trading online is an activity that consists in buying and selling financial titles through a platform called a broker. Trading can be done on forex, indices, cryptocurrencies, actions, and even raw materials like gold.
Broker
It is an intermediate between a trader and the market thereby permitting him/ her to place orders
A pip
It is the unit of measure in trading or simply the difference between two prices levels and it varies depending on the currency pair. An example is that your entry price is 1.23450 and the target was 1.23600 the difference between the entry price and the target gives the number of pips
The lot size
It is the smallest amount of capital that can be a risk in one trade. It is the amount of money that can be lost without creating any psychological problem for the trader.
Order
It is the act of taking a position on trade either to buy or sell.
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SOURCE from trading view edited by @k-inesse
Trading platform
It is a space that enables us to analyze markets and place orders.
Indicators
These are instruments that are used to make technical analyses on the market. Some indicators are Smooth moving average, relative strength index, Bollinger bands, TMA overlay, and many others.
Image form trading view showing indicators: Bollinger bands in blue and exponential moving average 20 in red
Hope you enjoyed reading and that it has added something to your previous knowledge. I will post next on the steps to becoming a professional trader. Stay tuned
