Because Tap Trading is so easy to use, here at BXB Exchange, we know that a lot of our users are actually.... new to trading! That's OK! We're always working hard to bring you knowledge, tips, strategies that can help you to make the move from newbie to pro. We've prepared a crypto trading glossary for our users and, anybody who needs it! Remember, you can also visit our telegram groups at any time to ask us any questions about cryptocurrencies & blockchain!
Please feel free to join us at the links below!
BXB-Philippines Telegram group: https://t.me/BXBPhilippines
Russian telegram group: https://t.me/BXBRussian
Korean telegram group 한국어 텔방: https://t.me/bxbofficialkr
Korean kakaotalk open group 한국어 카톡방: https://open.kakao.com/o/gUYno5yb
Spanish telegram group: t.me/BXBSpanish
Benvenuti sul Gruppo Ufficiale di BXB Italia: http://t.me/BXBItalia
Crypto Trading Glossary for Beginners
All-or-None (AON) Order: order that is executed solely if it can be entirely executed, no time limit.
All-Time High (ATH): the highest price that a cryptocurrency has ever had.
All-Time Low (ATL): the lowest price that a cryptocurrency has ever had.
Arbitrage: trading strategy where traders profit simultaneously by buying & selling crypto to take advantage of market inefficiencies due to prices of the same crypto varying between places.
Ask Price: minimum price for which an individual would want to sell an asset.
Bag Holder: an individual who holds their assets that are decreasing in value, rather than selling.
Bear Trap: false signal that a cryptocurrency’s price is about to fall, when it’s actually about to rise.
Bear Trend: long-term fall in the crypto market (typically a few months).
Bid-Ask Spread: this refers to the difference between the Bid and Ask prices for a cryptocurrency.
Bid Price: maximum price for which an individual would want to buy an asset.
Black Swan: an impossible-to-predict event with a massive impact on the crypto market.
Bull Trap: false signal that a cryptocurrency’s price is about to rise, when it’s actually about to fall.
Bull Trend: long-term upward trend in the crypto market (typically a few months or years).
Buy the Dips: this motto refers to the idea that a person should buy an asset when its price has dropped (expecting that it will eventually rise back up).
Buy Wall: a large number of buy orders placed on the order book all at once.
Candlesticks: the little bars on a graph that represent a cryptocurrency’s trading history, often used in Technical Analysis.
Confluence: this is when there are several indicators or analytical methods that collectively indicate the same imminent movement in the price of a cryptocurrency.
Contagion: a disturbance that spreads from one market to another with the potential to disrupt trading strategies that focus too heavily on market correlations.
Day Trading: this is when people make several trades per day in order to profit from small market changes.
Depth: this refers to the extent to which a cryptocurrency’s market can sustain a large amount of orders of that specific cryptocurrency without its price undergoing significant changes.
Diversification: this is a risk-management technique by which people invest in a wide range of cryptocurrencies that aren’t related to one another. This has the potential to minimize loss and boost profits.
Dollar-Cost Averaging: through this strategy, traders buy a specific amount of a cryptocurrency on a regular and specific schedule.
Exchanges: marketplaces where people are able to buy and sell cryptocurrency. BXB is an example of a crypto exchange. For traditional trading, an example is the New York Stock Exchange.
Fill-or-Kill (FOK) Order: an order that can’t be partially filled; it’s either entirely filled or canceled.
FOMO: Fear of Missing Out. When someone worries about missing an opportunity and therefore (potentially) recklessly making an investment.
FUD: Fear, Uncertainty, and Doubt. When someone excessively worries about an investment or asset collapsing.
Fundamental Analysis (FA): a type of trading strategy that emphasizes trading based on the intrinsic value of a cryptocurrency.
Going Long: in options trading, it refers to someone buying a cryptocurrency expecting it to sell it later at a higher price.
Going Short: in options trading, it refers to someone making a profit on a bet that the price of a cryptocurrency will go down.
Hedging: a risk-mitigating trading technique similar to an insurance policy. However, there is a trade-off: you mitigate risk, but also limit rewards.
High-Net-Worth-Individual (HNWI): when someone trades such a large amount of a cryptocurrency that it can alter the market for that currency.
HODL: risk-averse technique referring to holding one’s crypto assets long-term with the hopes of them appreciating, without ever selling or trading them.
Iceberg Order: a technique applied to avoid market movements with trades by dividing a large order into smaller ones as to not show the true amount being traded.
Immediate-or-Cancel (IOC) Order: similar to an FOK order, this refers to an order that must be immediately filled. If there are any parts of it that haven’t been filled, those parts are canceled.
Leverage: usually shown in the form of a ratio, this is when margin trading creates further buying power. This allows traders to pay less than full price for a cryptocurrency on borrowed funds.
Limit Order: this is when a trader makes an agreement with an exchange to make a trade exclusively at a precise price point – or better.
Liquidity: this is an indicator of how simple it is to turn a cryptocurrency into cash without incurring any loss.
Margin Trading: this is when a trader buys a cryptocurrency using borrowed funds.
Market Makers: these are entities or individuals who supply liquidity to an exchange by placing limit orders on its order book so that trades can be made at a range of prices.
Market Order: when a trader forms an agreement with a crypto exchange to buy/sell cryptocurrency immediately at the best available price.
Moon: this is a slang term used to indicate the price of a cryptocurrency skyrocketing.
Moving Average (MA): a Technical Analysis technique applied to smooth out small changes in the price of a cryptocurrency.
OTC Trades: this is when many high-net-worth individuals make use of a broker who puts them in contact with an entity willing to buy or sell the asset in question at a particular price. This is generally how many HNWI make very large trades.
Penny-Jumping: this is a strategy used to front-run large orders, typically done by trading bots.
Pump and Dump: a fraudulent strategy, this is when an entity uses fake news or data to factitiously pump up the price of a cryptocurrency so they can dump it for profit.
Put Options: a contract giving a trader the right (not obligation) to sell a specific asset on or before a specific time.
Resistance: a price level at which the selling pressure on an asset is historically greater than the buying pressure, meaning that the asset experiences resistance from the market when trying to break through that price level.
Return on Investment (ROI): a way to measure the success of an investment. ROI = Net Profit / Total Investment x 100.
Risk On, Risk Off (RORO): a trading strategy in which traders calibrate the levels of risk they’re willing to incur based on the current risk levels in the markets. If the crypto market seems very risky, they will tend to make less risky investments.
Sell Wall: a large number of sell orders placed on the order book all at once, at a seemingly undervalued price.
Shilling: a frowned-upon “strategy” in which someone duplicitously spreads fake news about a cryptocurrency in which they have an active interest.
Slippage: the difference between the price a trader actually executes a trade vs. the price they expected.
Stop-Loss Order: when a trader puts an order for an exchange to immediately execute a trade if a cryptocurrency reaches a specific price point.
Support: the price level at which the buying pressure on an asset is historically greater than the selling pressure, meaning the asset encounters support when its price attempts to dip lower than that level.
Swing Trading: a trading strategy in which someone buys a cryptocurrency at a low price and sells it at a high price frequently.
Take-Profit Order: the opposite of a stop-loss order. This is when an order is made to secure a trader’s profit, rather than limit their losses.
Tap Trading: a gamified derivative trading experienced innovated by BXB Exchange. Users can enjoy the high-leverage and high-returns of complex financial derivatives contracts without the hassle of complicated computations and complex tools.
Technical Analysis (TA): a trading technique that places an emphasis on mathematical patterns/indicators to predict how the price of a cryptocurrency will move in the future.
Value at Risk (VaR): a statistical method of measuring a portfolio’s risk (maximum amount of value that a trader expects to lose / a given time horizon)
Volatility: the size of changes in an asset’s value over time. Cryptocurrencies tend to be highly volatile.
Whale: a slang term that refers to the richest and biggest “players” in crypto trading.