Diversification is a financial strategy of investing in a variety of financial assets or types of investments in order to reduce the overall risk of a portfolio. The objective of diversification is to balance potential return and risk by allocating resources in different investment categories, so that the negative performance of some investments can be mitigated by the positive returns of others.
An economic indicator compiles macro data, a key tool to evaluate investment opportunities and the economy’s health.
Parameters are variables defining rules and conditions for trading operations, which vary by trading strategy.
The Golden Cross, a key trading term, denotes the crossing of two moving averages. Learn how it can guide trading strategies on assets.
The Average True Range (ATR) is an essential technical analysis indicator for investors seeking to measure market volatility.
A Dividend is a share of profit distributed to shareholders of a company, usually paid periodically as a return on investment.
Drawdown is a financial indicator measuring the decline from an asset's peak to its lowest point over a specified period, reflecting risk.
The Floor price is the lowest price at which an asset, such as an NFT or stock, is currently available for purchase on the market.
Bitcoin Dominance measures the proportion of Bitcoin's market capitalisation in relation to the total market cap of all cryptocurrencies.
In trading, a Pair involves two currencies exchanged against each other, commonly seen on cryptocurrency and forex exchanges.
Price action refers to the movement and behaviour of a financial instrument's price over time, used for predictive analysis in trading.
Relative Strength is a technical analysis tool comparing the price performance of two cryptocurrencies to evaluate their market strength.
A Breakout in trading occurs when the price surpasses a defined resistance or support level, leading to increased volatility and activity.
A Bull Run is a market phase marked by a sustained upward price trend, often reflecting widespread positive sentiment among investors.
A Rally is a rapid and significant increase in an asset's or market index's price, driven by a surge in demand from investors.
A Fakeout in the market occurs when the actual price trend diverges from investor expectations, leading to mistaken trading decisions.
A Market Mover is a factor or event capable of significantly influencing a financial market's direction and price levels.
Mutual Funds pool capital from multiple investors to invest collectively in diversified portfolios of assets.
A Bear Trap occurs in a bullish market, presenting a temporary downward price movement that can mislead investors.
A Bull Trap is a deceptive upward price movement in a bearish market, giving the false impression of a market recovery.
Volatility in finance refers to the extent of price fluctuations a financial instrument experiences over a period.
Supply and demand are fundamental economic forces determining the price and availability of goods and services in the market.
Volume indicates the total amount of a cryptocurrency traded within a specific time frame, reflecting market activity.
Market Trend signifies the prevailing direction of financial markets, identified over a substantial duration for investment analysis.
Trading is buying and selling financial assets in markets to profit from price movements and market trends.
A Stop Order is a conditional trade tool in markets, allowing investors to buy or sell assets when prices reach a set level.
Slippage is the variation between a trade's expected and executed price, often occurring in fast-moving or illiquid markets.
Support and Resistance are technical analysis tools identifying price levels where an asset's price trend may pause or reverse.
ROI, or Return on Investment, quantifies the performance of an investment by comparing profits to its original cost.
Pump&Dump is a manipulative market strategy that artificially inflates cryptocurrency prices for the benefit of the initiators.
Prediction markets are exchange-traded platforms that predict the outcomes of future events, reflecting market sentiment and speculations.
The order book shows the demand and supply on an exchange, listing prices at which users are willing to buy and sell certain amounts.
An Oracle is a blockchain mechanism providing external, verified data to smart contracts for accurate and reliable execution.
The term 'Moon' describes a rapid and significant surge in a cryptocurrency's price, indicating bullish market sentiment.
A Market Order is executed instantly at the next available best market price for buying or selling cryptocurrencies.
Market Makers are intermediaries who buy and sell large quantities of an asset to facilitate its liquidity and ensure market depth.
Market Cap denotes the total market value of all circulating coins or tokens of a particular cryptocurrency.
A Limit Order is executed only when the cryptocurrency reaches a predetermined price, specifying exact buy or sell conditions.
A Futures Contract is an agreement to buy or sell an asset at a predetermined price at a specified future date (hedging or speculation).
FUD (Fear, Uncertainty, and Doubt) describes a general sense of negativity or pessimism in the market, potentially affecting prices.
Circulating Supply refers to the number of cryptocurrency tokens or coins actively available for trading in the market.
The Forex (Foreign Exchange) Market is a global platform for trading fiat currencies, operating 24/7 with high liquidity.
Fear Of Missing Out (FOMO) in trading and cryptocurrency contexts refers to the anxiety of missing profitable opportunities.
ETFs (Exchange-Traded Funds) are passively managed funds that replicate the performance of a benchmark index, offering broad market exposure.
Buy Wall and Sell Wall represent significant purchase or sale demands at a specific price in cryptocurrency trading.
A Bull Market is a period where prices consistently rise, often driven by investor confidence and economic optimism.
The Break-even point is the financial state where total revenues equal total expenses, indicating neither profit nor loss.
In trading, 'Bid' and 'Ask' represent the prices at which buyers and sellers are willing to trade an asset in the order book.
A Benchmark is a standard or point of reference against which the performance of a financial instrument or market can be measured.
A Bear Market is a phase in the market characterized by declining asset prices and typically reflecting widespread pessimism.
ATH (All-Time High) and ATL (All-Time Low) represent a cryptocurrency's highest and lowest historical price points.
