All the Trading terms you need to know
Im sure you have read many posts about market moves and events and sometimes you just don't understand what people mean with certain words, i compiled the most used and the ones you really need to know to understand market trading...
Exchanges
Websites/Platforms where you can buy and sell cryptocurrencies, basically a market.
List of all exchanges
Market Cap
The total value in a cryptocurrency. It's calculated by multiplying the price of a unit of a coin with their total supply.
FIAT
"Real world" money/currency, example: Dollars $
Limit order / Limit Buy / Limit Sell
Orders placed by people to buy or sell a cryptocurrency when the price meets a certain number. They can be thought of as ‘for-sale’ signs. These orders are what are bought and sold against when traders place market orders.
Sell wall / Buy wall
Using the depth chart of the orders on a certain market you can how much money is in the Buy and on the Sell.
You can say its a buy or a sell wall when you see a big amount on a certain price, so it needs alot of buy or sell orders to pass that price.
Market order/buy/sell
A purchase or sale on a exchange at certain price. Market order you put the amount you want and the price, market buy you purchase the cheapest available on the order book and market sale fill the most expensive order on the book.
Arbitrage
Taking advantage of a difference in price of a certain coin in different exchanges. Buy cheap in one exchange and sell in another more expensive.
Margin trading
Is a way to intensify your trades by using all your money, only experience traders can make money doing this.
Going long
Margin trade that you believe the price will increase and you only profit with that.
Going long
Margin trade that you believe the price will increase and you only profit with that.
Going short
Margin trade that you believe the price will decrease and you only profit with that.
ROI (Return On Investment)
The percentage of how much money you made compared to the investment. (100% means you dobled your money).
TA (Technical Analysis)
Process of analyse and study the charts in order to predict the next move of the market.
ATH (All-Time-High)
When a coin reach a new high price never reached before.
Bullish
A speculation/expectation that the price is going to increase.
Bearish
A speculation/expectation that the price is going to decrease.
FUD (Fear, Uncertainty and Doubt)
Spread of negativity by someone of a group of people so the price of a coin drops.
FOMO (Fear Of Missing Out)
The sensation that you need to get a certain coin so you can't miss the increase of the price and make you millionaire lol.
Shilling / Pumping
Someone or a group of people advertising and spreading FOMO to increase a coin price.
Pump and Dump (PnD)
Cycle of a coin getting shilled leading a very fast price increase (can be in seconds) followed by a huge crash.
Whale
Someone that owns a very big amount of crypto currencies and can manipulat the market.
Bag Holder
Someone still holding a coin after a failed pump and dump or some coin that got his price decreased when was bought and the person still hold waiting for the increase.
Hey, John. It's really a great overview. Think it's a really good help for people that are new to the field.
Thanks, i will create more post like this in the future
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STOPThanks for the info. up voted and following