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Trading term library

Trading term library related to Cryptocurrency

Help newcomers to the cryptocurrency market understand Trading terms in the easiest way, commonly used terms in trading.

Information in crypto is very diverse and has many new terms, to make it easier for you to understand the terms as well as research project information.

Idolmeta.net has compiled a list of commonly used terms in crypto trading for your reference.

Financial market

A financial market is a market in which people and institutions can exchange financial securities, commodities, and other interchangeable items of value with low transaction costs and at Prices reflect supply and demand.

Securities include stocks and bonds and commodities include precious metals or agricultural commodities.

Crypto Market

To understand what the Crypto market is, you need to understand what the financial market is? Please refer to the definition from the Wiki above.

In the Crypto market, instead of stocks, bonds, precious metals… it is replaced by Coins or Tokens of startups in the Crypto space.

Currently, the law related to this market is still limited. Market participants should be fully equipped to avoid scams.

Trade Coin

Trade Coin brothers are basically the same as Trade Forex brothers, oil gold, US Stocks… Only Trade Coin brothers Trade Coins & Tokens, products related to the Crypto market.

Trading is the activity of buying low and selling high (Spot market, Margin Trading) or selling high or buying back low (Spot Trading, Margin Trading, Future Trading) to make a profit.

Trade Bot

Trade Bot here, you can understand that the use of Trading software is written to automatically enter and exit orders.

Some applications have built-in Bot Trading, for example: BitUniverse has Grid Trading bots, Trailing Bot…

Margin Trading

Margin Trading is also known as margin trading.

It is a form of trading that uses financial leverage so that users can buy and sell exchanges for more money than they have. From there, creating a higher profit and of course the risk will also be higher than normal trading.

Margin Trading is a popular tool in low volatility markets like Forex, Stock Market.

Currently, Margin Trading is also available in the cryptocurrency market with the next trend being Crypto derivatives (Derivatives).

Swing Trading

In Trading, there are many different schools of Trade from day trader, swing trader, news trader, scalper.

In a nutshell, if you Trade this way, you will:

  • Trade on high timeframes (from H1 and above) can hold positions from a few days to a week.
  • It is possible to hold orders overnight.
  • Usually will trade according to the waves of the market.
  • Do not enter too many orders.

Trader

Trader is an individual who conducts transactions (buy/sell) financial products such as: currency pairs on the forex market, securities, indices, gold, silver, cryptocurrency… in the name of a trader. himself or on behalf of another organization or individual.

When it comes to Trader, it is about short-term speculation and seeking profits through price differences, buy low and sell high or sell high and buy back low.

Investor

An investor is a person who participates in one or more investments in different forms.

An investor can be an individual, a business or an organization. Most investors invest money in order to get economic benefits, which is business and production investment activities.

A smaller number, usually state-owned units, make public investments to benefit society, such as the construction of civil and welfare facilities.

This phrase is also used in the financial industry to describe a group of people or companies that regularly buy securities, stocks or bonds, Crypto… to get profit from buying and selling activities.

Day Trader

In Trading, there are many different schools of Trade from day trader, swing trader, news trader, scalper.

In a nutshell, a Day Trader has some of the following characteristics:

  • Trade on border timeframes (from M5 to H1).
  • A Trade order will usually end in a short period of time from a few tens of minutes to a few hours.
  • Usually Day Traders do not hold orders overnight.
  • Usually enter many orders in a day.

Trading For Living

Because the characteristics of Trading work are not binding, many people consider this a second job besides their main job.

Trading For Living can be roughly understood as that Trader can support himself by Trading.

Bull Trap/Bear Trap

Bull Trap (understandably) is an incorrect signal. Shows that the downtrend has reversed and the price is moving up, when in fact it is going up a little and will then resume the previous downtrend.

Bear Trap (understandably) is an incorrect signal. It shows that the uptrend has ended and the price is now going down, when in fact it only went down a little and will resume the previous uptrend.

Bull Market and Bear Market

Bull Market understands the market in a bullish direction. A type of financial market in which the prices of a variety of products in the market increase faster than their historical average, over a long period of time with large volumes of trading.

Bear Market is the opposite of Bull Market.

Hedging

Hedging is a method of reducing the risk when trading derivatives from unwanted price fluctuations.

Usually, when the trend in the market changes suddenly, it is necessary to open two positions in the new trend as opposed to one option in the old trend.

This means that hedging a sell order in the event of a trend change and vice versa.

Eg:

BTC trend is decreasing, leading to all Altcoins falling, you have two Short positions with Altcoins. But the brethren have news that XRP is about to have big news that could go up sharply and BTC is still in a downtrend.

But according to our analysis, BTC seems to go up, so you will use hedging method to reduce risk by opening one more XRP Long.

In case the BTC trend suddenly changes to increase, you will immediately cut the other two Short Alt orders. If not, you will cut the Long XRP order.

Breakout

A price breakout or breakout in technical analysis is when price breaks through a support or resistance level and then settles/oscillates at levels above old resistance or stabilizes/oscillates at levels below support. old aid.

Martingale

Martingale is a fairly popular trading strategy created to increase positions after losing orders and gradually reduce profits after successful orders.

This strategy is based on a fairly common psychological illusion. Accordingly, the probability of winning after a loss will increase.

Martingale belongs to the group of high-risk trading strategies. However, if this strategy is used correctly, a trader can get a profit even while having a rather high loss percentage.

TP (Take Profit)

TP – Take Profit is a term in Trading. It means the take profit price for a trade order.

SL (Stop Loss)

SL – Stop Loss is a term in Trading. It means the stop loss price for a trade.

Sideway

Sideway is the way to call it when the market is “going sideways”. It means there is no obvious movement or the price is quite stable.

The price line in this situation will move around in the middle of the area created by the support and resistance lines without breaking out.

Unlike an uptrend or a downtrend, Sideway holds a balance between buyers and sellers.

Margin Call

The term Margin Call means that the broker will be forced to close the order of the trader who has reached a certain loss level.

Scalper

Scalping – Scalp or Scalper in Trading are both terms used to denote methods of surfing to earn small profits on a regular basis.

By entering and exiting trades multiple times a day, never hold positions overnight.

Momentum

Momentum is roughly understood as motivation or momentum.

If we apply the word momentum to technical analysis, we can understand that Momentum is the strength of the trend.

Do you imagine that when watching on the Chart, we can recognize that the trend of the price is up or down, but it increases sharply or not? Are there any signs of a reversal?

But that is quite difficult to discern with the naked eye. Those are commonly referred to as the Momentum of price.

Trailing Stop

Trailing Stop is a type of stop loss order. However, unlike the stop limit, which is always fixed, at any point you place your stop loss, when you reach that point, the order will be closed automatically.

Then the Trailing stop is a dynamic Stop loss that always moves in the same direction as the order trend.

Trailing Stops Stop Loss can be done manually according to some Indicators like Parabolic SAR or some other Indicator.

Limit command

A Limit order is a purchase by you or a stock or derivative product at a specific price, also known as the limit price.

Eg: The price of BTCUSDT is at 6200. Analysts see that the price can correct to 6000 before going up, so you place a Buy Limit order at 6000.

When the BTC price reaches 6000 or lower, your orders will be matched.

Stop Limit Orders

A Stop Limit order is an order that combines both a limit order and a stop order.

When the market price reaches the stop price, the stop-limit order becomes a buy or sell limit order.

Market order

A market order is a type of order that is executed immediately at the market price.

When the buyer and seller place an order, the buy or sell order will match the market price.

Binance OCO Orders

OCO order or “One Cancels the Other” order (one order to cancel the other) allows you to place two orders at the same time. This order is a combination of two orders, a stop order and a stop-limit order, but only one of the two can be executed.

In other words, as soon as one of the two orders is partially or fully executed, the other is automatically cancelled.

Note that if one of the two orders is cancelled, the other is also cancelled. This order is used to set Stop Loss and Take Profit automatically.

Pivot Point

Pivot Points are market pivots that help identify support and resistance levels.

Because according to traders, Pivot Points are support and resistance levels are areas where price can reverse. That is, the price will show signs of turning back when it reaches the price area of these support and resistance levels.

R1- R5 are resistance price areas, S1 – S5 are support price areas according to Pivot Point.

Where to learn Trading?

There are many different trading resources online, from quality to non-quality.

You can learn Trading from Idolmeta.net and then learn more on your own from many other sources.

 

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