Glossary

1997 Asian financial crisis

A financial crisis gripped much of East and Southeast Asia during the late 1990s. It began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide economic meltdown due to financial contagion. …
— en.wikipedia.org: 1997 Asian financial crisis

In simple words: Currency crashes across Asia in 1997.

2008 financial crisis

The 2008 financial crisis was a major worldwide financial crisis which started in the United States. The first phase was the subprime mortgage crisis, which began in early 2007 as mortgage-backed securities (MBS) tied to U.S. real estate, and a vast web of …
— en.wikipedia.org: 2008 financial crisis

In simple words: The global crisis triggered by US housing loans.

2010 flash crash

The flash crash of May 6, 2010, also known as the crash of 2:45 or simply the flash crash, was a United States trillion-dollar flash crash which started at 2:32 p.m. EDT and lasted for approximately 36 minutes.
— en.wikipedia.org: 2010 flash crash

In simple words: US stocks crashed and recovered within minutes on 6 May 2010.

51% attack

A type of attack where a group gains control of the majority of nodes. This would allow them to defraud the blockchain by reversing transactions and double spending ether and other tokens.In Ethereum proof-of-stake this would be achieved by accumulating more …
— ethereum.org: 51% attack

In simple words: Someone controlling most of the network can rewrite recent history.

52-Week High/Low

A 52-week high and low is the highest and lowest market price of a given asset over 52 weeks or one year.
— coinmarketcap.com: 52-Week High/Low

In simple words: The highest and lowest price of the past year.

80/20 Rule (Pareto Principle)

The 80/20 rule, commonly known as Pareto Principle, states that 20% of your actions account for 80% of results.
— coinmarketcap.com: 80/20 Rule

In simple words: A small part of causes gives most of the results.

Abenomics

Abenomics is the economic strategy implemented by Shinzo Abe of Japan and is comprised of three arrows: monetary policy, fiscal stimulus and structural reforms.
— coinmarketcap.com: Abenomics

In simple words: Japan's 2010s mix of money printing, spending and reforms.

Abnormal Return

Abnormal return refers to the unusual profits from certain assets or securities over a specific time period.
— coinmarketcap.com: Abnormal Return

In simple words: A return different from what was expected.

Absolute Return

The term absolute return refers to the return on investment (whether positive or negative) obtained in a specific period of time.
— coinmarketcap.com: Absolute Return

In simple words: The plain gain or loss, not compared to anything.

Account

An Ethereum account is a digital identity on the Ethereum blockchain, allowing users to send, receive Ether, and interact with smart contracts.Technical:Its an object containing an address, balance, nonce, and optional storage and code. An account can be a …
— ethereum.org: Account

In simple words: An Ethereum account that holds ETH.

Accumulation/Distribution Indicator

The accumulation/distribution indicator determines the supply and demand level of a stock/asset/cryptocurrency by multiplying the closing price of a specific period with volume.
— coinmarketcap.com: Accumulation/Distribution Indicator

In simple words: An indicator combining price and volume to show buying or selling pressure.

Active Management

Active management requires a manager, or a team of managers, to actively manage a portfolio.
— coinmarketcap.com: Active Management

In simple words: A manager picks investments instead of just tracking an index.

Activist Investor

An activist investor is an individual or institution seeking to gain a controlling stake in a company to instigate changes.
— coinmarketcap.com: Activist Investor

In simple words: An investor who buys a stake to push for changes.

Address

An Ethereum address is a unique identifier used for receiving tokens, functions similar to a bank account number for cryptocurrencies. Its used to identify your Ethereum account.It is the rightmost 160 bits of a Keccak hash of an ECDSA public key.
— ethereum.org: Address

In simple words: Like an account number you can share to receive crypto.

Advance/Decline Line (A/D Line)

The A/D line is a technical indicator that plots the difference between the advancing and declining issues in the stock market on a daily basis
— coinmarketcap.com: Advance/Decline Line

In simple words: Shows how many stocks rise versus fall.

Aggregate Demand

In an economy, aggregate demand is the total demand for all finished services and goods produced by that economy.
— coinmarketcap.com: Aggregate Demand

In simple words: All the spending in an economy added up.

Airdrop

A marketing campaign that distributes a specific cryptocurrency or token to an audience.
— coinmarketcap.com: Airdrop

In simple words: Free tokens sent to wallets, often as promotion.

Algo-Trading (Algorithmic Trading)

Algo-trading is an automated trading system where buy and sell orders are placed according to the rules of a computer program or algorithm.
— coinmarketcap.com: Algo-Trading

In simple words: Trading done automatically by computer rules.

Algorithmic Stablecoin

An algorithmic stablecoin actually uses an algorithm underneath, which can issue more coins when its price increases and buy them off the market when the price falls.
— coinmarketcap.com: Algorithmic Stablecoin

In simple words: A stablecoin held stable by code, not reserves. Some have collapsed.

All-Time-High (ATH)

The highest point (in price, in market capitalization) that a cryptocurrency has been in history. *see All-Time-Low (ATL).
— coinmarketcap.com: All-Time-High

In simple words: The highest price ever.

All-Time-Low (ATL)

An all-time low (ATL) refers to the lowest price a cryptocurrency has hit during its trading history.
— coinmarketcap.com: All-Time-Low

In simple words: The lowest price ever.

Alpha

Alpha is a financial tool indicating an investment’s performance relative to its benchmark index in the market.
— coinmarketcap.com: Alpha

In simple words: Return above the benchmark.

Altcoin

As Bitcoin is the first cryptocurrency that captured the world’s imagination, all other coins were subsequently termed “altcoins,” as in “alternative coins.”
— coinmarketcap.com: Altcoin

In simple words: Any cryptocurrency other than bitcoin.

Alternative Investments

Alternative investments are assets that have low correlation and can achieve different risk-adjusted returns than traditional equity and fixed income investments.
— coinmarketcap.com: Alternative Investments

In simple words: Investments outside stocks, bonds and cash.

Ambiguity aversion

In decision theory and economics, ambiguity aversion is a preference for known risks over unknown risks. An ambiguity-averse individual would rather choose an alternative where the probability distribution of the outcomes is known over one where the …
— en.wikipedia.org: Ambiguity aversion

In simple words: Preferring known risks over unknown ones.

American Option

An option that can be exercised at any time prior to or on the expiration date. See European Option.
— cftc.gov: American Option

In simple words: An option you can use any day up to expiry.

Analysis paralysis

Analysis paralysis is a state of an individual or a group in which excessive analysis of a situation cause forward motion or decision-making to become paralyzed, meaning that no solution or course of action is decided upon within a natural time frame. It is …
— en.wikipedia.org: Analysis paralysis

In simple words: Overthinking so much that you never act.

Anchoring and Adjustment

Anchoring is the psychological phenomenon of having a preconceived idea of something and adjusting your decision-making around that preconceived notion.
— coinmarketcap.com: Anchoring and Adjustment

In simple words: Getting stuck on a first number, such as your entry price.

Anchoring effect

The anchoring effect is a psychological phenomenon in which an individual's judgments or decisions are influenced by a reference point or "anchor" which can be completely irrelevant.
— en.wikipedia.org: Anchoring effect

In simple words: Getting stuck on the first number you saw.

Angel Investor

A person who financially backs a new business venture or startup.
— coinmarketcap.com: Angel Investor

In simple words: A private person funding a startup early.

Animal Spirits

Animal spirits are the driving forces behind the economy that are not purely economic in nature but also include psychological factors, such as confidence and fear.
— coinmarketcap.com: Animal Spirits

In simple words: Emotions such as confidence and fear that drive markets.

Annual Percentage Rate (APR)

The amount of interest a borrower must pay each year is known as the annual percentage rate (APR). The annual percentage rate (APR) is determined by multiplying the periodic interest rate by
— coinmarketcap.com: Annual Percentage Rate

In simple words: Yearly interest without compounding.

Annual Percentage Yield (APY)

Annual percentage yield (APY) is the rate of return gained over the course of a year on a specific investment. Compounding interest, which is computed on a regular basis.
— coinmarketcap.com: Annual Percentage Yield

In simple words: Yearly return including compounding.

Annualized Rate of Return

‍An annualized rate of return is a way to measure and track the performance of an investment over time.
— coinmarketcap.com: Annualized Rate of Return

In simple words: The return converted to a yearly rate.

Anti-Fragile

A quality attached to an asset that means it performs better when exposed to volatility and shocks.
— coinmarketcap.com: Anti-Fragile

In simple words: Something that gets stronger from shocks.

Anti-Money Laundering (AML)

A set of international laws enacted to curtail criminal organizations or individuals laundering money through cryptocurrencies into real-world cash.
— coinmarketcap.com: Anti-Money Laundering

In simple words: Rules that stop criminal money moving through the system.

Apeing

Apeing is when a cryptocurrency trader buys a token shortly after the token project launch without conducting thorough research.
— coinmarketcap.com: Apeing

In simple words: Buying a new coin fast without research.

Arbitrage

A strategy involving the simultaneous purchase and sale of identical or equivalent commodity futures contracts or other instruments across two or more markets in order to benefit from a discrepancy in their price relationship. In a theoretical efficient market, there is a lack of opportunity for profitable arbitrage. See Spread.
— cftc.gov: Arbitrage

In simple words: Profiting from a price difference between two markets.

strategies

Arbitrage Pricing Theory (APT)

The arbitrage pricing theory (APT) offers a framework for evaluating market efficiency and identifying arbitrage opportunities in financial markets.
— coinmarketcap.com: Arbitrage Pricing Theory

In simple words: A model explaining returns through several risk factors.

Arbitrageur

An arbitrageur is a type of investor who exploits pricing inefficiencies between two different markets.
— coinmarketcap.com: Arbitrageur

In simple words: Someone who profits from price differences between markets.

Aroon Indicator

Aroon Indicator is used to identify the existence, changes, and corrective retracements and gauge the strength of an ongoing trend in financial markets.
— coinmarketcap.com: Aroon Indicator

In simple words: An indicator showing how recently the high and low were made.

Ascending Channel

Ascending channels are trend continuation patterns that have an ascending price action as their main characteristic.
— coinmarketcap.com: Ascending Channel

In simple words: Price rising between two parallel lines.

Ask

The price level of an offer, as in bid-ask spread.
— cftc.gov: Ask

In simple words: The lowest price a seller will accept right now.

prices Read the full entry →

Asset Class

An asset class is a classification of investments based on common traits, behaviors and laws.
— coinmarketcap.com: Asset Class

In simple words: A group of similar investments, like stocks or bonds.

Assets Under Management (AUM)

Assets under management measures the total market values of all the funds controlled by an individual or financial institution on behalf of their clients.
— coinmarketcap.com: Assets Under Management

In simple words: The total money a fund manages.

Assignment

Designation by a clearing organization of an option writer who will be required to buy (in the case of a put) or sell (in the case of a call) the underlying futures contract or security when an option has been exercised, especially if it has been exercised early.
— cftc.gov: Assignment

In simple words: The option seller is told to deliver.

Astroturfing

The practice of disguising marketing campaigns or otherwise sponsored messaging as the unprompted views of genuine community members.
— coinmarketcap.com: Astroturfing

In simple words: Paid promotion disguised as genuine fans.

At-the-Market

An order to buy or sell a futures contract at whatever price is obtainable when the order reaches the trading facility. See Market Order.
— cftc.gov: At-the-Market

In simple words: An order to trade at the best price available now.

At-the-Money

When an option's strike price is the same as the current trading price of the underlying commodity, the option is at-the-money.
— cftc.gov: At-the-Money

In simple words: The strike equals the current price.

Attestation

A claim made by an entity that something is true. In context of Ethereum, consensus validators must make a claim as to what they believe the state of the chain to be. At designated times, each validator is responsible for publishing different attestations …
— ethereum.org: Attestation

In simple words: A validator's vote on the chain.

Automated Market Maker (AMM)

An automated market maker (AMM) is a system that provides liquidity to the exchange it operates in through automated trading.
— coinmarketcap.com: Automated Market Maker

In simple words: A DEX that prices trades with a formula instead of an order book.

Automatic Exercise

A provision in an option contract specifying that it will be exercised automatically on the expiration date if it is in-the-money by a specified amount, absent instructions to the contrary.
— cftc.gov: Automatic Exercise

In simple words: In-the-money options are used automatically at expiry.

Availability cascade

An availability cascade is a self-reinforcing cycle that explains the development of certain kinds of collective beliefs. A novel idea or insight, usually one that seems to explain a complex process in a simple or straightforward manner, gains rapid currency …
— en.wikipedia.org: Availability cascade

In simple words: A belief spreads because people keep repeating it.

Availability heuristic

The availability heuristic, also known as availability bias, is a mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision. This heuristic, operating on the notion …
— en.wikipedia.org: Availability heuristic

In simple words: Judging by what comes to mind easily.

Average Daily Trading Volume (ADTV)

The average daily trading volume (ADTV) of stock or crypto is the number of shares/coins traded in one day.
— coinmarketcap.com: Average Daily Trading Volume

In simple words: How much trades on an average day.

Average Directional Index (ADX)

The average directional index (ADX) is a technical indicator that measures how strong a market trend is by using price moving averages and is represented by figures ranging between 1 and 100,
— coinmarketcap.com: Average Directional Index

In simple words: Measures how strong a trend is, not its direction.

Back Months

Futures delivery months other than the spot or front month (also called deferred months).
— cftc.gov: Back Months

In simple words: Futures expiring later than the front month.

Backtest

Testing a rule on old prices.

testing Read the full entry →

Backtesting

Backtesting in cryptocurrency refers to using historical data to simulate the performance of a trading strategy.
— coinmarketcap.com: Backtesting

In simple words: Testing a strategy on past price data.

Backwardation

Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for January is $360.00 per ounce and that for June is $355.00 per ounce, the backwardation for five months against January is $5.00 per ounce. (Backwardation is the opposite of contango). See Inverted Market.
— cftc.gov: Backwardation

In simple words: Future prices below today's price.

futures Read the full entry →

Bag

Crypto slang for a large quantity of a specific cryptocurrency. Alternatively (but less frequently) used to refer to the contents of an individual's crypto portfolio.
— coinmarketcap.com: Bag

In simple words: A big holding of one coin (often one that went down).

Bagholder

An investor who continues to hold large amounts of a specific coin or token, regardless of its performance.
— coinmarketcap.com: Bagholder

In simple words: Someone stuck holding a coin that keeps falling.

Bail-In

Bail-in is a relief or rescue solution offered to a heavily indebted financial institution.
— coinmarketcap.com: Bail-In

In simple words: Creditors and depositors take losses to save a bank.

Bail-Out

Bail-out refers to a capital injection or resources given to an entity to prevent a potential downfall, including default and bankruptcy on its financial obligations.
— coinmarketcap.com: Bail-Out

In simple words: Outside money (often the state) rescues a failing firm.

Bandwagon Effect

The bandwagon effect is the phenomenon in which a person’s decision is influenced by the majority.
— coinmarketcap.com: Bandwagon Effect

In simple words: Doing something because everyone else is.

Banging the Close

See Marking the Close.
— cftc.gov: Banging the Close

In simple words: Heavy trading at the close to move the settlement price. Illegal.

Bank for International Settlements (BIS)

The BIS is an international financial institution that promotes global monetary stability.
— coinmarketcap.com: Bank for International Settlements

In simple words: The "central bank of central banks".

Bank Run

A bank run occurs when most customers withdraw their cash from the bank out of fear of solvency and bankruptcy.
— coinmarketcap.com: Bank Run

In simple words: Everyone rushes to take their money out at once.

Base fee

Every block has a reserve price known as the 'base fee'. It is the minimum gas fee a user must pay to include a transaction in the next block. More on gas and fees.
— ethereum.org: Base fee

In simple words: The minimum fee per unit of gas, which is burned.

Basis

The difference between the spot or cash price of a commodity and the price of the nearest futures contract for the same or a related commodity (typically calculated as cash minus futures). Basis is usually computed in relation to the futures contract next to expire and may reflect different time periods, product forms, grades, or locations.
— cftc.gov: Basis

In simple words: The gap between the spot price and the futures price.

futures

Basis Point

Basis point is a common unit of measure that shows changes in financial interest rates and percentages.
— coinmarketcap.com: Basis Point

In simple words: One hundredth of a percent (0.01%).

Basis Risk

The risk associated with an unexpected widening or narrowing of the basis between the time a hedge position is established and the time that it is lifted.
— cftc.gov: Basis Risk

In simple words: The risk that the hedge and the asset do not move together.

Basket of Goods

A basket of goods is a measure to assess the prices of consumer goods and services.
— coinmarketcap.com: Basket of Goods

In simple words: The fixed shopping list used to measure inflation.

Beacon chain

The Beacon Chain was the blockchain that introduced proof-of-stake and validators to Ethereum. It ran alongside the proof-of-work Ethereum Mainnet from December 2020 until the two chains were merged in September 2022 to form the Ethereum of today. More on …
— ethereum.org: Beacon chain

In simple words: The proof-of-stake coordination chain behind Ethereum.

Bear / bearish

One who expects a decline in prices; a news item is bearish if expected to result in lower prices.
— cftc.gov: Bear / bearish

In simple words: Someone who thinks the price will go down.

Bear Market

A market in which prices generally are declining over a period of months or years. Opposite of bull market.
— cftc.gov: Bear Market

In simple words: A long-lasting falling market.

markets

Bearwhale

A bearwhale is a person who has a high number of cryptocurrencies and uses their massive account to drive the price down and profit out of it.
— coinmarketcap.com: Bearwhale

In simple words: A big holder who pushes the price down by selling.

Behavioral Finance

Behavioral finance is a branch of finance that combines psychology and economics to explain how human emotions and cognitive biases influence financial decisions.
— coinmarketcap.com: Behavioral Finance

In simple words: The study of how emotions and biases affect money decisions.

Behavioural finance

Behavioural finance is the study of the influence of psychology on the behaviour of investors or financial analysts. It assumes that investors are not always rational, have limits to their self-control and are influenced by their own biases.
— en.wikipedia.org: Behavioural finance

In simple words: The study of how emotions and mental shortcuts affect investors.

Belief perseverance

Belief perseverance is the maintenance of a belief despite new information that firmly contradicts it.
— en.wikipedia.org: Belief perseverance

In simple words: Keeping a belief even after it is proven wrong.

Benchmark Index

A benchmark index is a popular index security that is used as a gauge or benchmark, against which the progress of the broader market may be tracked.
— coinmarketcap.com: Benchmark Index

In simple words: The index you compare your results against.

Bid

An offer to buy a specific quantity of a commodity at a stated price.
— cftc.gov: Bid

In simple words: The highest price a buyer will pay right now.

prices Read the full entry →

Bid-Ask Spread or Bid-Offer Spread

The difference between the bid price and the ask or offer price..
— cftc.gov: Bid-Ask Spread or Bid-Offer Spread

In simple words: The gap between the buy price and the sell price, a hidden cost.

prices costs Read the full entry →

Binary Option

A type of option whose payoff is either a fixed amount or zero. For example, there could be a binary option that pays $100 if a hurricane makes landfall in Florida before a specified date and zero otherwise. Also called a digital option.
— cftc.gov: Binary Option

In simple words: An all-or-nothing bet on whether a price ends above a level. Banned for retail in the EU.

Bitcoin Dominance (BTCD)

Bitcoin Dominance is a metric that determines how much share of the overall crypto market share is owned by Bitcoin.
— coinmarketcap.com: Bitcoin Dominance

In simple words: Bitcoin's share of the whole crypto market.

Bitcoin ETF

A Bitcoin ETF, or exchange-traded fund, is a type of investment fund that tracks the price of Bitcoin and allows investors to buy and sell shares of the fund on an exchange.
— coinmarketcap.com: Bitcoin ETF

In simple words: A fund on the stock exchange that tracks bitcoin.

Bitcoin Halving

Bitcoin halving is an event in which the total rewards per confirmed block halves.
— coinmarketcap.com: Bitcoin Halving

In simple words: Bitcoin's mining reward is cut in half roughly every four years.

Bitcoin Improvement Proposal (BIP)

The standard format for documents proposing changes to Bitcoin.
— coinmarketcap.com: Bitcoin Improvement Proposal

In simple words: The formal way to propose a bitcoin change.

Bitcoin Pizza

Bitcoin Pizza refers to the infamous transaction where a guy, named Laszlo Hanyecz, paid 10,000 Bitcoins for two pizzas making it the first business transaction of Bitcoin in the real world.
— coinmarketcap.com: Bitcoin Pizza

In simple words: The famous early purchase of two pizzas for 10,000 BTC.

Checked: the Bitcointalk thread "Pizza for bitcoins?" (source) has the offer on 18 May 2010 and the post "I just want to report that I successfully traded 10,000 bitcoins for pizza" dated May 22, 2010.

Bitcointalk

Bitcointalk is the most popular online forum dedicated to Bitcoin, cryptocurrency and blockchain technology.
— coinmarketcap.com: Bitcointalk

In simple words: The original bitcoin forum.

BitLicense

A business license permitting regulated virtual currency activities, issued by the New York State Department of Financial Services.
— coinmarketcap.com: BitLicense

In simple words: New York's licence for crypto businesses.

Black Monday (1987)

Black Monday was a global, severe and largely unexpected stock market crash on Monday, October 19, 1987. Worldwide losses were estimated at US$1.71 trillion. The severity sparked fears of extended economic instability or a reprise of the Great Depression.
— en.wikipedia.org: Black Monday

In simple words: The biggest one-day stock crash, 19 October 1987.

Black Swan Event

A black swan event, also known as black swan occurrences, is a metaphor for an unexpected event that has a significant impact.
— coinmarketcap.com: Black Swan Event

In simple words: A rare, unexpected event with huge impact.

Black Wednesday

Black Wednesday, or the 1992 sterling crisis, was a financial crisis that occurred on 16 September 1992 when the UK Government was forced to withdraw pound sterling (GBP) from the (first) European Exchange Rate Mechanism , following a failed attempt to keep …
— en.wikipedia.org: Black Wednesday

In simple words: 1992: the British pound was forced out of the European exchange-rate system.

Black-Scholes Model

An option pricing model initially developed by Fischer Black and Myron Scholes for securities options and later refined by Black for options on futures.
— cftc.gov: Black-Scholes Model

In simple words: The classic formula for pricing options.

Block

A block is where transactions or digital actions are stored. Once a block is full, it gets linked to the previous one, creating a chain of blocks or a "blockchain". More on blocks.A block is a bundled unit of information that includes an ordered list of …
— ethereum.org: Block

In simple words: A bundle of transactions added to the chain together.

Block builder

A participant that assembles transactions into a block and offers it to the validator proposing that slot, usually ordering transactions by the fees and payments they bring.
— ethereum.org: Block builder

In simple words: Puts transactions together into a block.

Block explorer

An interface that allows a user to search for information from, and about, a blockchain. This includes retrieving individual transactions, activity associated with specific addresses and information about the network.
— ethereum.org: Block explorer

In simple words: A website where you can look up any transaction or address.

Block proposer

The specific validator chosen to create a block in a particular slot.
— ethereum.org: Block proposer

In simple words: The validator chosen to propose a block.

Block reward

The amount of ether rewarded to the proposer of a new valid block.
— ethereum.org: Block reward

In simple words: New coins paid to whoever adds a block.

Block time

The time interval between blocks being added to the blockchain.
— ethereum.org: Block time

In simple words: How often a new block is added.

Block Trade

A block trade is a large-scale purchase or sale of securities that occur outside of an open market. It uses blockhouse as a financial intermediary to aid investors with risk management.
— coinmarketcap.com: Block Trade

In simple words: One very large trade, often done privately.

Blockchain

A blockchain is a database of transactions, duplicated and shared on all computers in the network, ensuring data cannot be altered retroactively.A sequence of block , each linking to its predecessor all the way to the genesis block by referencing the hash of …
— ethereum.org: Blockchain

In simple words: A shared public record of all transactions, stored by many computers.

Blockchain Trilemma

The blockchain trilemma is the set of three issues that plague blockchains: decentralization, security and scalability.
— coinmarketcap.com: Blockchain Trilemma

In simple words: Hard to be secure, decentralised and fast at once.

Boiler Room

An enterprise that often is operated out of inexpensive, low-rent quarters (hence the term 'boiler room'), that uses high pressure sales tactics (generally over the telephone), and possibly false or misleading information to solicit generally unsophisticated investors.
— cftc.gov: Boiler Room

In simple words: A high-pressure phone scam selling investments.

Bollinger Band

A tool developed by Bollinger to help in the recognition of systemic pattern recognition in prices.
— coinmarketcap.com: Bollinger Band

In simple words: Bands around a moving average that widen when volatility rises.

Bonding Curve

A bonding curve is a mathematical curve that defines the relationship between the price and the supply of a given asset.
— coinmarketcap.com: Bonding Curve

In simple words: A formula that sets a token's price based on its supply.

BOS (break of structure)

Trader jargon, no official definition

from the "smart money concepts" (SMC) community. Price breaks beyond the previous swing high (uptrend) or swing low (downtrend). No peer-reviewed evidence that it predicts returns.

In simple words: Price takes out the last peak or dip in the direction of the trend.

Break-even stop (BE)

Trader jargon, no official definition

Moving the stop-loss to the entry price after the trade has moved in your favour.

In simple words: Your stop sits at your entry price, so the trade can no longer lose (apart from fees and slippage).

Break-even win rate

The minimum share of winning trades needed to offset losses at a given reward-to-risk multiple R: 1 ÷ (1 + R), before costs (e.g. 1:2 gives 33.3%).
— calc.forex: Break-even win rate

In simple words: The win rate where you neither make nor lose money.

Bretton Woods system

The Bretton Woods system of monetary management established the rules for commercial relations among 44 countries, including the United Kingdom, United States, Canada, European countries, and Australia, after the 1944 Bretton Woods Agreement until the Jamaica …
— en.wikipedia.org: Bretton Woods system

In simple words: The post-war system of fixed exchange rates tied to the dollar.

Bridge

A blockchain bridge is used to transfer assets from one blockchain network to another. For example you can use bridge to transfer ETH from the main Ethereum network to cheaper Layer 2 scaling solutions.
— ethereum.org: Bridge

In simple words: A tool for moving coins between blockchains. Bridges are often hacked.

Bubble

When an asset is traded at a price exceeding that asset's intrinsic value.
— coinmarketcap.com: Bubble

In simple words: Prices far above any reasonable value, usually ending in a crash.

Bucket Shop

A brokerage enterprise that 'books' (i.e., takes the opposite side of) retail customer orders without actually having them executed on an exchange.
— cftc.gov: Bucket Shop

In simple words: A fake broker that bets against clients instead of executing orders.

Bull / bullish

One who expects a rise in prices; a news item is bullish if expected to result in higher prices.
— cftc.gov: Bull / bullish

In simple words: Someone who thinks the price will go up.

Bull Market

A market in which prices generally are rising over a period of months or years. Opposite of bear market.
— cftc.gov: Bull Market

In simple words: A long-lasting rising market.

markets

Bull Run

A bull run (also known as a bull trend) is a period of time in the financial market during which the values of certain assets are constantly rising.
— coinmarketcap.com: Bull Run

In simple words: A long period of rising prices.

Bull Trap

A bull trap occurs when a steadily declining asset appears to reverse and go upward, but soon resumes its downward trend.
— coinmarketcap.com: Bull Trap

In simple words: A fake recovery: price looks like it is turning up, then falls again.

Bunched Order

A discretionary order entered on behalf of multiple customers.
— cftc.gov: Bunched Order

In simple words: Several clients' orders combined into one.

Burn/Burned

Cryptocurrency tokens or coins are considered “burned” when they have been purposely and permanently removed from circulation.
— coinmarketcap.com: Burn/Burned

In simple words: Coins permanently destroyed, which reduces supply.

Butterfly Spread

A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call at a $5.50 strike price, two short calls at a $6.00 strike price, and one long call at a $6.50 strike price.
— cftc.gov: Butterfly Spread

In simple words: A three-strike option combination that profits if price stays near the middle.

Buttonwood Agreement

The Buttonwood Agreement is the founding document of what is now the New York Stock Exchange and is one of the most important financial documents in U.S. history. The agreement organized securities trading in New York City and was signed on May 17, 1792 …
— en.wikipedia.org: Buttonwood Agreement

In simple words: The 1792 deal that started the New York Stock Exchange.

Buy (or Sell) On Close

To buy (or sell) at the end of the trading session within the closing price range
— cftc.gov: Buy On Close

In simple words: Buying at the end of the session.

Buy The (F*******) Dip (BTD/BTFD)

An enthusiastic exclamation by supporters of a cryptocurrency to buy while prices are at a low point.
— coinmarketcap.com: Buy The Dip

In simple words: A cheer to buy when prices fall. A slogan, not advice.

Buy Wall

A buy wall is a disproportionately large buy limit order placed on a cryptocurrency exchange.
— coinmarketcap.com: Buy Wall

In simple words: A large pile of buy orders at one price.

Byzantine Fault Tolerance (BFT)

Byzantine Fault Tolerance (BFT) is the property of a computer system that allows it to reach consensus regardless of the failure of some of its components.
— coinmarketcap.com: Byzantine Fault Tolerance

In simple words: A network keeps working even if some members cheat.

Calendar Spread

(1) The purchase of one delivery month of a given futures contract and simultaneous sale of a different delivery month of the same futures contract; (2) the purchase of a put or call option and the simultaneous sale of the same type of option with typically the same strike price but a different …
— cftc.gov: Calendar Spread

In simple words: Options or futures with the same strike or product but different months.

Call option

(1) An option contract that gives the buyer the right but not the obligation to purchase a commodity or other asset or to enter into a long futures position at a specified price on or prior to a specified expiration date; (2) formerly, a period at the opening and the close of some futures markets …
— cftc.gov: Call option

In simple words: The right to buy at a set price before a date.

Calmar ratio

Profit compared with the worst drop.

Candlestick

A bar showing open, high, low and close; the thin lines above and below the body are called shadows (also wicks or tails).
— chartschool.stockcharts.com: Candlestick

In simple words: One "candle" shows where price started, ended, and how far it went in a period.

Myth: the popular claim that the rice trader Homma invented candlestick charts is unsupported. A 2016 NTAA Journal paper concludes candlesticks emerged later, in the Meiji era (after 1868). NTAA Journal Vol. 3 (2016), Japanese PDF.

charts Read the full entry →

Capitulation

Capitulation is the process of selling assets or cryptocurrencies at a significant loss because you have lost hope or belief that it will ever increase in price.
— coinmarketcap.com: Capitulation

In simple words: People give up and sell at a big loss.

Carry Trade

A trade where one borrows a currency or commoidity commodity or currency with a low cost of carry and lends a similar instrument with a high cost of carry in order to profit from the differential.
— cftc.gov: Carry Trade

In simple words: Borrowing cheap currency to invest in a higher-yielding one.

Cascading Liquidations

Cascading liquidation refers to an event where liquidations pile on top of each other, resulting in a sudden price change.
— coinmarketcap.com: Cascading Liquidations

In simple words: Liquidations trigger more liquidations, so the price moves violently.

Cash Settlement

A method of settling futures, options and other derivatives whereby the seller (or short) pays the buyer (or long) the cash value of the underlying commodity or a cash amount based on the level of an index or price according to a procedure specified in the contract. Also called Financial Settlement. Compare to Physical Delivery.
— cftc.gov: Cash Settlement

In simple words: Settling in money instead of handing over the goods.

futures

Censorship Resistance

Censorship resistance refers to the idea that no party can prevent anyone from participating in a given platform or network.
— coinmarketcap.com: Censorship Resistance

In simple words: Nobody can block your transaction.

Central Bank

In contemporary economies, the central bank is responsible for the formulation and transmission of monetary policy, as well as for the regulation of member banks.
— coinmarketcap.com: Central Bank

In simple words: The bank that sets a country's interest rates and money policy.

Central Bank Digital Currency (CBDC)

CBDCs are digital currencies issued by a central bank whose status as legal tender depends on government regulation or law.
— coinmarketcap.com: Central Bank Digital Currency

In simple words: Digital cash issued by a central bank.

Central Limit Order Book (CLOB)

A single order book covering an entire market that accepts limit orders. In general, the term is synonymous with order book.
— cftc.gov: Central Limit Order Book

In simple words: An order book where orders match by price, then by time.

orders Read the full entry →

Centralized Exchange (CEX)

Centralized exchanges (CEXs) are a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner.
— coinmarketcap.com: Centralized Exchange

In simple words: A crypto exchange run by a company, such as Coinbase or Kraken.

Certificate of Deposit (CD)

A certificate of deposit (CD) is a financial product allowing customers to earn an interest rate premium after making a deposit.
— coinmarketcap.com: Certificate of Deposit

In simple words: A bank savings deposit locked for a fixed time.

CFTC

See Commodity Futures Trading Commission.
— cftc.gov: CFTC

In simple words: The US regulator for futures and derivatives.

Chain Reorganization

Chain reorganization is a process in blockchain technology that allows node operators to replace blocks and adopt new ones, in order to create new, longer chains of data.
— coinmarketcap.com: Chain Reorganization

In simple words: The chain swaps recent blocks for a longer version.

Chain Split

Chain splits are another term used to describe cryptocurrency forks — the separation of a single original coin into several independently managed projects.
— coinmarketcap.com: Chain Split

In simple words: One blockchain splits into two.

Chartist

Technical trader who reacts to signals derived from graphs of price movements.
— cftc.gov: Chartist

In simple words: A trader who uses charts.

Checkpoint

The Beacon Chain has a tempo divided into slots (12 seconds) and epochs (32 slots). The first slot in each epoch is a checkpoint. When a supermajority of validators attests to the link between two checkpoints, they can be justified and then when another …
— ethereum.org: Checkpoint

In simple words: A block where finality is decided.

Chicago Board of Trade

The Chicago Board of Trade (CBOT) is an American futures and options exchange that was founded in 1848. It operated as an independent exchange for more than 150 years, before merging with its long-time rival the Chicago Mercantile Exchange (CME) to form CME …
— en.wikipedia.org: Chicago Board of Trade

In simple words: A historic Chicago futures exchange, now part of CME Group.

Chicago Mercantile Exchange (CME)

The Chicago Mercantile Exchange (CME) is one of the largest exchanges dealing in the trading of futures and options in the United States.
— coinmarketcap.com: Chicago Mercantile Exchange

In simple words: The big Chicago futures exchange (also lists bitcoin futures).

ChoCh / MSS (change of character / market structure shift)

Trader jargon, no official definition

The first break against the prevailing swing structure, read as a possible trend change. No evidence base.

In simple words: The first sign that a trend might be turning.

Choice-supportive bias

Choice-supportive bias or post-purchase rationalization is the tendency to retroactively ascribe positive attributes to an option one has selected and/or to demote the forgone options. It is part of cognitive science, and is a distinct cognitive bias that …
— en.wikipedia.org: Choice-supportive bias

In simple words: Remembering your own choices as better than they were.

Churning

Excessive trading of a discretionary account (by a broker). Related, but not identical, to "overtrading" by a trader.
— cftc.gov: Churning

In simple words: Trading far too much, mostly benefiting the person earning fees.

Circuit Breakers

A system of coordinated trading halts and/or price limits on equity markets and equity derivative markets designed to provide a cooling-off period during large, intraday market declines. The first known use of the term circuit breaker in this context was in the Report of the Presidential Task Force on Market Mechanisms (January 1988), which recommended that circuit breakers be adopted following the market break of October 1987.
— cftc.gov: Circuit Breakers

In simple words: Automatic trading pauses after big moves.

rules

Circulating Supply

The best approximation of the number of coins that are circulating in the market and in the general public’s hands.
— coinmarketcap.com: Circulating Supply

In simple words: Coins actually out in the market now.

Clearing Organization

An entity through which futures and other derivative transactions are cleared and settled. It is also charged with assuring the proper conduct of each contract's delivery procedures and the adequate financing of trading. A clearing organization may be a division of a particular exchange, an adjunct or affiliate thereof, or a freestanding entity. Also called a clearing house, multilateral clearing organization, central counterparty, or clearing association. A clearing organization that is registered with the CFTC is known as a Derivatives Clearing Organization. See Central Counterparty.
— cftc.gov: Clearing Organization

In simple words: The middleman that guarantees trades are settled.

markets

Clustering illusion

The clustering illusion is the tendency to erroneously consider the inevitable "streaks" or "clusters" arising in small samples from random distributions to be non-random. The illusion is caused by a human tendency to underpredict the amount of variability …
— en.wikipedia.org: Clustering illusion

In simple words: Seeing patterns in random streaks.

Co-Location

The placement of servers used by market participants in close physical proximity to an electronic trading facility's matching engine in order to facilitate high-frequency trading.
— cftc.gov: Co-Location

In simple words: Putting trading servers right next to the exchange for speed.

Cognitive bias

A cognitive bias is a systematic pattern of deviation from the norm or rationality in judgment. Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the objective input, may dictate …
— en.wikipedia.org: Cognitive bias

In simple words: A built-in thinking error everyone makes.

Cognitive dissonance

In the field of psychology, cognitive dissonance is described as a mental phenomenon in which people unknowingly or subconsciously hold fundamentally conflicting cognitions. Being confronted by situations that create this dissonance or highlight these …
— en.wikipedia.org: Cognitive dissonance

In simple words: The discomfort of holding two clashing beliefs.

Coin Mixer

Coin mixers allow users to mix up transactions between different cryptocurrency addresses, so they become untraceable and cannot be followed back to the initial sender or receiver.
— coinmarketcap.com: Coin Mixer

In simple words: A service that blends coins to hide their origin.

Coin-Margined Trading

Coin-margined trading is a form of trading where cryptocurrencies or any other form of digital asset serves as the base for all transaction and settlement purposes.
— coinmarketcap.com: Coin-Margined Trading

In simple words: Futures where the margin is paid in the coin itself, not in dollars.

Cold Storage

Offline storage of cryptocurrencies, typically involving hardware non-custodial wallets, USBs, offline computers, or paper wallets.
— coinmarketcap.com: Cold Storage

In simple words: Keeping crypto offline for safety.

Cold Wallet

A cryptocurrency wallet that is in cold storage, i.e. not connected to the internet.
— coinmarketcap.com: Cold Wallet

In simple words: A wallet kept offline: safer for storage.

Collateralization

Collateralization is the process of using one asset as insurance for securing a loan in a different asset.
— coinmarketcap.com: Collateralization

In simple words: Putting up assets as security for a loan.

Collateralized Stablecoin

A “collateralized stablecoin” is a stablecoin that is entirely or almost entirely backed by collateral held in a reserve.
— coinmarketcap.com: Collateralized Stablecoin

In simple words: A stablecoin backed by assets held in reserve.

Commercial (trader)

An entity involved in the production, processing, or merchandising of a commodity.
— cftc.gov: Commercial

In simple words: A business using futures to hedge real activity.

Commission

(1) The charge made by a futures commission merchant for buying and selling futures contracts; or (2) the fee charged by a futures broker for the execution of an order. Note: when capitalized, the word Commission usually refers to the CFTC.
— cftc.gov: Commission

In simple words: The fee a broker charges per trade.

Commitments of Traders

Report (COT) A weekly report from the CFTC providing a breakdown of each Tuesday's open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. Open interest is broken down by aggregate commercial, non-commercial, and …
— cftc.gov: Commitments of Traders

In simple words: The weekly CFTC report showing who holds futures.

Commodity Pool

An investment trust, syndicate, or similar form of enterprise operated for the purpose of trading commodity futures or option contracts. Typically thought of as an enterprise engaged in the business of investing the collective or “pooled” funds of multiple participants in trading commodity futures or options, where participants share in profits and losses on a pro rata basis. See 7 USC 1a(10).
— cftc.gov: Commodity Pool

In simple words: A fund that pools money to trade futures.

futures

Concentrated Liquidity

Concentrated liquidity refers to the ability for liquidity providers (LPs) to select a particular range along the price curve to provide liquidity.
— coinmarketcap.com: Concentrated Liquidity

In simple words: Providing liquidity only within a chosen price range.

Confirmation bias

Confirmation bias is the tendency to search for, interpret, favor and recall information in a way that confirms or supports one's prior beliefs, values, or decisions. People display this bias when they select information that supports their views, ignoring …
— en.wikipedia.org: Confirmation bias

In simple words: Only noticing information that agrees with you.

Congestion (consolidation / range)

In technical analysis, a period of time characterized by repetitious and limited price fluctuations.
— cftc.gov: Congestion

In simple words: Price moving sideways in a box without a clear direction.

Consensus

When more than 2/3 of the computers in a network agree that they have the same set of records, making sure everyone is on the same page. This isn't about the rules they follow, but making sure they all have the same information.
— ethereum.org: Consensus

In simple words: How the network agrees on which transactions are valid.

Consensus client

Consensus clients (such as Prysm, Teku, Nimbus, Lighthouse, Lodestar) run Ethereum's proof-of-stake consensus algorithm allowing the network to reach agreement about the head of the Beacon Chain. Consensus clients do not participate in validating/broadcasting …
— ethereum.org: Consensus client

In simple words: Software that follows the chain's agreement rules.

Consensus layer

Ethereum's consensus layer is the network of consensus clients.
— ethereum.org: Consensus layer

In simple words: The part of Ethereum that runs proof-of-stake.

Contango

Market situation in which prices in succeeding delivery months are progressively higher than in the nearest delivery month; the opposite of contango is backwardation.
— cftc.gov: Contango

In simple words: Future prices above today's price.

futures Read the full entry →

Continuation pattern

A shape that suggests the trend is pausing, not ending.

Contract account

An account containing code that executes whenever it receives a transaction from another account (EOA or contract).
— ethereum.org: Contract account

In simple words: An account controlled by code.

Contract for difference (CFD)

Betting on a price change without owning the asset.

derivatives Read the full entry →

Contract Month

See Delivery Month.
— cftc.gov: Contract Month

In simple words: The month a futures contract expires.

futures

Contract Size

The actual amount of a commodity represented in a contract.
— cftc.gov: Contract Size

In simple words: How much of the asset one contract covers.

Convergence

The tendency for prices of physicals and futures to approach one another, usually during the delivery month. Also called a 'narrowing of the basis.'
— cftc.gov: Convergence

In simple words: Futures and spot prices come together at expiry.

Corner

(1) Securing such relative control of a commodity that its price can be manipulated, that is, can be controlled by the creator of the corner; or (2) in the extreme situation, obtaining contracts requiring the delivery of more commodities than are available for delivery. See Squeeze, Congestion.
— cftc.gov: Corner

In simple words: Controlling so much supply that you can dictate the price. Illegal.

Correction

A correction is a pullback of an asset’s price of at least 10% to adjust for over-valuation.
— coinmarketcap.com: Correction

In simple words: A drop of about 10% or more after a rise.

Correlation coefficient

A statistical measure of how closely one security is related to another.
— chartschool.stockcharts.com: Correlation coefficient

In simple words: How much two assets move together.

Cost of Carry

See Carrying Charges.
— cftc.gov: Cost of Carry

In simple words: The cost of holding an asset over time (storage, interest).

Counter-Trend Trading

In technical analysis, the method by which a trader takes a position contrary to the current market direction in anticipation of a change in that direction.
— cftc.gov: Counter-Trend Trading

In simple words: Trading against the current trend.

Counterparty

The opposite party in a bilateral agreement, contract, or transaction, such as a swap. In the retail foreign exchange (or Forex) context, the party to which a retail customer sends its funds; lawfully, the party must be one of those listed in Section 2(c)(2)(B)(ii)(I)-(VI) of the Commodity Exchange Act.
— cftc.gov: Counterparty

In simple words: The other side of your trade.

markets

Counterparty Risk

The risk associated with the financial stability of the party with whom one has entered into contract. Forward contracts impose upon each party the risk that the counterparty will default, but futures contracts executed on a designated contract market are guaranteed against default by the clearing …
— cftc.gov: Counterparty Risk

In simple words: The risk that the other side does not pay.

Covered Option

A short call or put option position that is covered by the sale or purchase of the underlying futures contract or other underlying instrument. For example, in the case of options on futures contracts, a covered call is a short call position combined with a long futures position. A covered put is a …
— cftc.gov: Covered Option

In simple words: Selling an option while holding the underlying asset.

CPI / core CPI

See 07. Core = all items less food and energy.
— bls.gov: CPI / core CPI

In simple words: The main US inflation number; core leaves out food and energy.

macro Read the full entry →

Credit Rating

Credit rating is a measure that allows banks and lending institutions to predict how capable you are of repaying your debt.
— coinmarketcap.com: Credit Rating

In simple words: A grade of how likely a borrower is to repay.

Cross margin

All available margin of the respective asset type can be drawn to prevent liquidation.
— bybit.com: Cross margin

In simple words: Your whole balance backs all positions.

Cross Rate

In foreign exchange, the price of one currency in terms of another currency in the market of a third country. For example, the exchange rate between Japanese yen and Euros would be considered a cross rate in the U.S. market.
— cftc.gov: Cross Rate

In simple words: An exchange rate between two non-dollar currencies.

Cross-Hedge

Hedging a cash market position in a futures or option contract for a different but price-related commodity.
— cftc.gov: Cross-Hedge

In simple words: Hedging with a related but different product.

Crypto Loan

A crypto loan is a type of secured loan, similar to an auto or student loan, in which you commit to an asset as collateral in order to secure financing.
— coinmarketcap.com: Crypto Loan

In simple words: A loan backed by your crypto.

Crypto Winter

Crypto winter is a period in the crypto market when prices of major coins fall dramatically from all-time highs.
— coinmarketcap.com: Crypto Winter

In simple words: A long period of low crypto prices.

Crypto-asset service provider (CASP)

A firm providing crypto services that needs MiCA authorisation in the EU from 30 Dec 2024.
— esma.europa.eu: Markets in Crypto-Assets Regulation (MiCA)

In simple words: An EU-licensed crypto company.

crypto rules Read the full entry →

Cryptocurrency Pairs

Exchanges utilize cryptocurrency pairs in order to facilitate the trade between different tokens.
— coinmarketcap.com: Cryptocurrency Pairs

In simple words: Two coins traded against each other, like BTC/USDT.

Cryptoeconomics

The study of mathematical and economic principles to design secure and trustworthy digital platforms. The goal is to ensure that all participants follow the rules and are rewarded for contributing to the network's security and operation.
— ethereum.org: Cryptoeconomics

In simple words: Using cryptography plus incentives to secure a network.

Cryptojacking

The use of another party’s computer to mine cryptocurrency without their consent.
— coinmarketcap.com: Cryptojacking

In simple words: Someone secretly uses your computer to mine.

CryptoPunks

A collection of Ethereum-based non-fungible tokens.
— coinmarketcap.com: CryptoPunks

In simple words: One of the first well-known NFT collections.

Cup with handle

A bullish continuation pattern: a consolidation followed by a breakout; developed by William O'Neil (1988 book How to Make Money in Stocks).
— chartschool.stockcharts.com: Cup with handle

In simple words: A rounded dip, a small dip, then a breakout.

Currency Crisis

A currency crisis is termed as a financial emergency in which a country's fiat currency loses value, and investors become cautious of retaining/investing in that country's assets.
— coinmarketcap.com: Currency Crisis

In simple words: A country's money suddenly loses a lot of value.

Currency Swap

A swap that involves the exchange of one currency (e.g., U.S. dollars) for another (e.g., Japanese yen) on a specified schedule.
— cftc.gov: Currency Swap

In simple words: Exchanging loans in two currencies.

Custodial

Custodial cryptocurrency businesses are the ones that are in possession of their customers’ funds for the duration of the use of their services.
— coinmarketcap.com: Custodial

In simple words: Someone else, such as an exchange, holds your keys.

Custodian

A custodian is responsible for safely holding assets for an institution or individual for a variety of purposes.
— coinmarketcap.com: Custodian

In simple words: A company that holds assets for you.

Cypherpunk

The cypherpunk movement promotes the use of cryptography and other privacy-focused technologies to advance social and political progress.
— coinmarketcap.com: Cypherpunk

In simple words: Privacy activists who paved the way for bitcoin.

Daily Price Limit

The maximum price advance or decline from the previous day's settlement price permitted during one trading session, as fixed by the rules of an exchange.
— cftc.gov: Daily Price Limit

In simple words: The furthest the price may move in one day.

futures rules

Dapp

A dApp is a decentralized application that runs on a blockchain network, offering services without a central controlling authority. More on decentralized applications.At a minimum dapp has a smart contract connected to a web interface. In addition, many dapps …
— ethereum.org: Dapp

In simple words: An app built on a blockchain.

Data availability

Any node can independently verify transactions on a blockchain in order to maintain transparency and trust in the system.
— ethereum.org: Data availability

In simple words: Making sure block data can be checked by anyone.

Data snooping

Trying many tests and showing only the lucky one.

testing Read the full entry →

Day Order

An order that expires automatically at the end of each day's trading session. There may be a day order with time contingency. For example, an 'off at a specific time' order is an order that remains in force until the specified time during the session is reached. At such time, the order is automatically canceled.
— cftc.gov: Day Order

In simple words: An order that expires at the end of the day.

orders Read the full entry →

Day Trader

A trader, often a person with exchange trading privileges, who takes positions and then offsets them during the same trading session prior to the close of trading.
— cftc.gov: Day Trader

In simple words: Someone who closes all trades within the day.

Day Trading

Day trading is the practice of frequently buying and selling assets in order to make a profit on intraday changes in their price.
— coinmarketcap.com: Day Trading

In simple words: Opening and closing trades within the same day.

Dead Cat Bounce

A temporary recovery in prices after a prolonged decrease.
— coinmarketcap.com: Dead Cat Bounce

In simple words: A short bounce in a falling market that does not last.

Dead Coin

A cryptocurrency that is no longer in existence.
— coinmarketcap.com: Dead Coin

In simple words: A coin that no longer has a project or market.

Death Cross

A death cross is a bearish technical trading indicator that occurs when the 50-day moving average falls below the 200-day moving average, indicating a big sell-off.
— coinmarketcap.com: Death Cross

In simple words: The 50-day average crosses below the 200-day average. Read as bearish; no guarantee.

Decentralization

The concept of moving the control and execution of processes away from a central entity.
— ethereum.org: Decentralization

In simple words: Control spread out instead of in one place.

Decentralized autonomous organization (DAO)

A DAO is a digital organization run by rules coded on a blockchain, where decisions are made by member votes, not a central authority. More on decentralized autonomous organizations (DAOs).Each member's voting power often tied to the number of tokens they …
— ethereum.org: Decentralized autonomous organization

In simple words: A group run by token-holder votes coded on a blockchain.

Decentralized exchange (DEX)

A type of Ethereum app that lets you swap tokens with peers on the network. DEXes are not subject to geographical restrictions like centralized exchanges – anyone can participate.
— ethereum.org: Decentralized exchange

In simple words: An exchange without a company in the middle; you trade from your own wallet.

Default

Failure to perform on a futures contract as required by exchange rules, such as failure to meet a margin call, or to make or take delivery.
— cftc.gov: Default

In simple words: Failing to meet a payment obligation.

risk

DeFi

A broad category of Ethereum apps aiming to provide financial services backed by the blockchain, without any intermediaries. More on decentralized finance (DeFi)
— ethereum.org: DeFi

In simple words: Financial services run by smart contracts instead of banks.

Deflation

A decline in the general level of prices for goods and services in an economy.
— coinmarketcap.com: Deflation

In simple words: Prices falling across the economy.

Delegated Proof-of-Stake (dPOS)

An alternative to the Proof-of-Stake and Proof-of-Work consensus algorithms.
— coinmarketcap.com: Delegated Proof-of-Stake

In simple words: Holders vote for a few validators.

Delisting

The process of removing an asset/stock/cryptocurrency from a trading exchange is called delisting.
— coinmarketcap.com: Delisting

In simple words: An asset is removed from an exchange.

Delivery

The tender and receipt of the actual commodity, the cash value of the commodity, or of a delivery instrument covering the commodity (e.g., warehouse receipts or shipping certificates), used to settle a futures contract. See Notice of Intent to Deliver, Delivery Notice.
— cftc.gov: Delivery

In simple words: Actually handing over the goods.

futures

Delta

A calculation of the expected change in an option's price given a one-unit change in the price of the underlying commodity or asset. For example, the price of an option with a delta of 0.5 would be expected to change $0.50 when the underlying commodity or asset’s price moves $1.00.
— cftc.gov: Delta

In simple words: How much the option price moves when the underlying moves.

Delta Neutral

Refers to a position involving options with a value that is independent of the value of the underlying instrument, i.e. that is designed to have an overall delta of zero.
— cftc.gov: Delta Neutral

In simple words: A position that does not gain or lose from small price moves.

Dencun Upgrade

Dencun is essentially the fusion of two separate upgrades - 'Deneb' and ‘Cancun’ together targeting improvements across Ethereum's consensus and execution layers.
— coinmarketcap.com: Dencun Upgrade

In simple words: The 2024 Ethereum upgrade that made layer-2 cheaper.

Depeg

A depeg occurs when a stablecoin loses its intended fixed value (typically $1) and trades at a different price.
— coinmarketcap.com: Depeg

In simple words: A stablecoin losing its fixed value.

Deposit contract

The gateway to staking on Ethereum. The deposit contract is a smart contract on Ethereum that accepts deposits of ETH and manages validator balances. A validator cannot be activated without depositing ETH into this contract. The contract requires ETH and …
— ethereum.org: Deposit contract

In simple words: Where ETH is sent to become a validator.

Depth Chart

A graph that plots the requests to buy (bids) and the requests to sell (asks) on a chart, based on limit orders. The chart shows the point at which the market is most likely to accept a trans
— coinmarketcap.com: Depth Chart

In simple words: A picture of how many buy and sell orders sit at each price.

Derivative

A financial instrument, traded on or off an exchange, the price of which is directly dependent upon (i.e. derived from) the value of one or more underlying securities, equity indices, debt instruments, commodities, other derivative instruments, or any agreed upon pricing index or arrangement (e.g., the movement over time of the Consumer Price Index or freight rates). They are used to hedge risk or to exchange a floating rate of return for fixed rate of return. Derivatives include futures, options, and swaps. For example, futures contracts with cash settlement are derivatives of the price of a commodity or the value of an index and options on futures are derivatives of futures contracts.
— cftc.gov: Derivative

In simple words: A product whose value comes from something else.

derivatives

Derivatives Market

A public market for derivatives, instruments such as futures contracts or options, which are derived from other forms of cryptocurrency assets.
— coinmarketcap.com: Derivatives Market

In simple words: Where futures and options trade.

Dex Aggregator

DEX aggregators are a relatively new type of blockchain-based service that allow cryptocurrency traders to benefit from a large variety of financial tools in a single interface, often providi
— coinmarketcap.com: Dex Aggregator

In simple words: A tool that searches many DEXs for the best price.

Diamond Hands

Diamond Hands is a popular term on social media platforms. It refers to people who hold their coins even if their portfolio drops in value by more than 20%.
— coinmarketcap.com: Diamond Hands

In simple words: Refusing to sell, even through big drops.

Digital signature

A short string of data a user produces for a document using a private key such that anyone with the corresponding public key, the signature, and the document can verify that (1) the document was "signed" by the owner of that particular private key, and (2) …
— ethereum.org: Digital signature

In simple words: Cryptographic proof that you approved a transaction.

Dip

A dip is when markets experience a short or protracted downturn.
— coinmarketcap.com: Dip

In simple words: A drop in price.

Disposition effect

Selling winners too early, keeping losers too long.

psychology Read the full entry →

Disruptive Trading Practice

The Dodd-Frank Act amended the Commodity Exchange Act to explicitly prohibit trading activity that (A) violates bids or offers; (B) demonstrates intentional or reckless disregard for the orderly execution of transactions during the closing period; or (C) enters bids and offers with the intent to …
— cftc.gov: Disruptive Trading Practice

In simple words: Trading behaviour banned for disrupting markets.

Distribution Phase

The distribution phase is the opposite of the accumulation phase. In this phase, the market moves sideways and is range-bound after experiencing an extended uptrend.
— coinmarketcap.com: Distribution Phase

In simple words: After a rise, big holders slowly sell.

Diversification

Diversification is a risk-management strategy that mixes a wide variety of investments within a portfolio.
— coinmarketcap.com: Diversification

In simple words: Do not put all your eggs in one basket.

Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law on July 21, 2010. Title VII of the Dodd-Frank Act amends the Commodity Exchange Act to establish a comprehensive new regulatory framework for swaps and security-based swaps. The legislation was enacted to reduce risk, …
— cftc.gov: Dodd-Frank Act

In simple words: The big US financial reform law after 2008.

Doji

Forms when open and close are virtually equal; conveys indecision between buyers and sellers.
— chartschool.stockcharts.com: Doji

In simple words: A candle with almost no body: buyers and sellers are undecided.

Dolphin

Someone with a moderate holding of cryptocurrency.
— coinmarketcap.com: Dolphin

In simple words: Someone with a medium-sized crypto holding.

Dot-com bubble

The dot-com bubble was a stock market bubble that developed during the late 1990s and peaked on March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Internet, resulting in a dispensation of …
— en.wikipedia.org: Dot-com bubble

In simple words: The late-1990s internet stock bubble.

Double spend

A deliberate blockchain fork, where a user with a sufficiently large amount of mining power/stake sends a transaction moving some currency offchain (e.g., exiting into fiat money or making an offchain purchase) then reorganizing the blockchain to remove that …
— ethereum.org: Double spend

In simple words: Spending the same coin twice; blockchains are designed to stop it.

Double Spend Attack

A double-spend attack is a practice in the world of digital currencies where a user gains the ability to spend the same cryptocurrency more than once.
— coinmarketcap.com: Double Spend Attack

In simple words: Trying to spend the same coins twice.

Double top

A bearish reversal pattern found on bar, line and candlestick charts.
— chartschool.stockcharts.com: Double top

In simple words: Price hits the same high twice and fails.

Dow Jones Industrial Average

The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow, is a stock market index tracking the stock performance of 30 large companies listed on stock exchanges in the United States. It is named after founder Charles Dow and his business …
— en.wikipedia.org: Dow Jones Industrial Average

In simple words: A famous index of 30 big US companies.

Drawdown

The maximum reduction in value from the peak value for an investment or fund that has occurred over a period of time.
— coinmarketcap.com: Drawdown

In simple words: How far your account fell from its peak.

risk Read the full entry →

Drawdown / maximum drawdown

Maximum cumulative loss from a peak to a following bottom (MDD). Magdon-Ismail & Atiya, Risk 17(10):99-102, 2004.
— cs.rpi.edu: Drawdown / maximum drawdown

In simple words: How far your account fell from its highest point.

Dump

A sudden sell-off of digital assets.
— coinmarketcap.com: Dump

In simple words: A sudden sell-off.

Dust Transactions

Miniscule amounts of Bitcoin in a wallet — with a value that would be outweighed by the cost of a transaction fee.
— coinmarketcap.com: Dust Transactions

In simple words: Tiny amounts of crypto, sometimes sent to track wallets.

Dusting Attack

An attack that aims to uncover the identity of a wallet’s owner, information that can subsequently be used in phishing scams.
— coinmarketcap.com: Dusting Attack

In simple words: Tiny amounts sent to your wallet to track you.

DYOR

The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing.
— coinmarketcap.com: DYOR

In simple words: Check the facts yourself before you buy.

Dōjima Rice Exchange

The Dōjima Rice Exchange, located in Osaka, was the center of Japan's system of rice brokers, which developed independently and privately in the Edo period and would be seen as the forerunner to a modern banking system. It was first established in 1697, …
— en.wikipedia.org: Dōjima Rice Exchange

In simple words: An early futures market for rice in Osaka, Japan.

ECB

Since 1 January 1999 responsible for monetary policy for the euro area.
— ecb.europa.eu: ECB

In simple words: The central bank for countries using the euro.

Efficient Market

In economic theory, an efficient market is one in which market prices adjust rapidly to reflect new information. The degree to which the market is efficient depends on the quality of information reflected in market prices. In an efficient market, profitable arbitrage opportunities do not persist …
— cftc.gov: Efficient Market

In simple words: A market where prices already reflect known information.

EIA

US federal independent authority for energy statistics and analysis, established 1 October 1977; publishes data on energy production, stocks, demand and prices.
— eia.gov: EIA

In simple words: US agency publishing oil and gas data (e.g. weekly stock reports).

EIP-1559

EIP-1559 is an upgrade to the Ethereum network that simplified the fee market mechanism.
— coinmarketcap.com: EIP-1559

In simple words: Ethereum's fee reform: a base fee that is burned.

Elliott Waves

The Elliott Wave Theory is an essential tool for many stock and crypto market traders.
— coinmarketcap.com: Elliott Waves

In simple words: A theory that markets move in repeating wave patterns. Contested.

EMA (exponential moving average)

An average that reacts faster to new prices.

Endowment effect

In psychology and behavioral economics, the endowment effect, also known as divestiture aversion, is the finding that people are more likely to retain an object they own than acquire that same object when they do not own it. The endowment theory can be …
— en.wikipedia.org: Endowment effect

In simple words: Valuing something more because you own it.

Engulfing pattern

A reversal pattern, bearish at the end of an uptrend or bullish at the end of a downtrend.
— chartschool.stockcharts.com: Engulfing pattern

In simple words: A candle whose body "swallows" the previous one.

Epoch

A period of 32 slots, each slot being 12 seconds, totalling 6.4 minutes. Validator committees are shuffled every epoch for security reasons. Each epoch has an opportunity for the chain to be finalized. Each validator is assigned new responsibilities at the …
— ethereum.org: Epoch

In simple words: A set group of slots on Ethereum.

Equal highs / equal lows

Trader jargon, no official definition

Two or more swing points at about the same price.

In simple words: Price stopped at the same level twice.

Equity (account)

The residual value of a trading account, assuming it was liquidated at current prices.
— cftc.gov: Equity

In simple words: What your account would be worth if you closed everything now.

ERC-1155

ERC-1155 is a newer type of Ethereum token standard similar to NFT (like unique collectible items) that also allows creating interchangeable items (like currency) within a single smart contract.This makes it easier and more efficient to manage various types …
— ethereum.org: ERC-1155

In simple words: A standard for many token types in one contract.

ERC-20

ERC-20 is the standard that most tokens on Ethereum network use for their creation.Popular examples are stablecoins like DAI and USDC or exchange tokens like UNI from Uniswap. Akin to any form of alternative moneys that we have in traditional systems… i.e., …
— ethereum.org: ERC-20

In simple words: The standard format for ordinary tokens on Ethereum.

ERC-721

NFTs (non fungible tokens) are created using a standard set of rules referred to as ERC-721.NFT tokens can represent ownership of anything unique, like digital art or collectibles, with each token having its own special characteristics and value. Each NFT is …
— ethereum.org: ERC-721

In simple words: The standard for NFTs.

Ether

The native cryptocurrency of Ethereum, commonly referred to as “ETH”. It is used to cover transaction fees when using Ethereum ecosystem and applications. More on ether.
— ethereum.org: Ether

In simple words: The coin of the Ethereum network.

Ethereum ETF

An Ethereum Exchange Traded Fund (ETF) is an investment tool that allows investors to get exposed to Ethereum's price movements through traditional stock exchanges.
— coinmarketcap.com: Ethereum ETF

In simple words: A fund on the stock exchange that tracks ether.

Ethereum Improvement Proposal (EIP)

A design document providing information to the Ethereum community, describing a proposed new feature or its processes or environment (see ERC). Introduction to EIPs
— ethereum.org: Ethereum Improvement Proposal

In simple words: A formal proposal to change Ethereum.

Ethereum Name Service (ENS)

Ethereum Name Service is like an internet phonebook for Ethereum addresses. Instead of using long wallet addresses, ENS lets you use simple names like "john.eth" to send and receive digital money and assets.Technical:The ENS registry is a single central …
— ethereum.org: Ethereum Name Service

In simple words: Readable names like yourname.eth for addresses.

Ethereum Virtual Machine (EVM)

A stack-based virtual machine that executes bytecode. In Ethereum, the execution model specifies how the system state is altered given a series of bytecode instructions and a small tuple of environmental data. This is specified through a formal model of a …
— ethereum.org: Ethereum Virtual Machine

In simple words: The computer that runs Ethereum smart contracts.

Eurodollars

U.S. dollar deposits placed with banks outside the U.S. Holders may include individuals, companies, banks, and central banks.
— cftc.gov: Eurodollars

In simple words: US dollars held in banks outside the US.

European Option

An option that may be exercised only on the expiration date. See American Option.
— cftc.gov: European Option

In simple words: An option you can use only on the expiry date.

Exchange

A central marketplace such as a designated contract market with established rules and regulations where buyers and sellers meet to trade futures and options contracts or securities.
— cftc.gov: Exchange

In simple words: An organised marketplace for trading.

markets

Exchange Rate

The price of one currency stated in terms of another currency.
— cftc.gov: Exchange Rate

In simple words: The price of one currency in another.

Exchange Traded Fund (ETF)

A security that tracks a basket of assets such as stocks, bonds, and cryptocurrencies but can be traded like a single stock.
— coinmarketcap.com: Exchange Traded Fund

In simple words: A fund you can buy and sell like a stock.

Execution client

Execution clients (formerly known as "Eth1 clients"), such as Besu, Erigon, Go-Ethereum (Geth), Nethermind, are tasked with processing and broadcasting transactions and managing Ethereum's state. They run the computations for each transaction using the …
— ethereum.org: Execution client

In simple words: Software that runs transactions.

Execution layer

Ethereum's execution layer is the network of execution clients.
— ethereum.org: Execution layer

In simple words: The part of Ethereum that runs transactions.

Exercise Price

(Strike Price) The price, specified in the option contract, at which the underlying futures contract, security, or commodity will move from seller to buyer.
— cftc.gov: Exercise Price

In simple words: Another name for the strike price.

Exit Scam

An exit scam is a trick where projects disappear (or shut down) after accumulating investors’ money.
— coinmarketcap.com: Exit Scam

In simple words: The founders disappear with the money.

Exotic Options

Any of a wide variety of options with non-standard payout structures or other features, including Asian options and lookback options.
— cftc.gov: Exotic Options

In simple words: Options with unusual rules.

Expectancy

The mean R-multiple of a system's distribution of trades.
— vantharpinstitute.com: Expectancy

In simple words: Average gain per trade, in R, over many trades.

risk Read the full entry →

Expiration Date

The date on which an option contract automatically expires; the last day an option may be exercised.
— cftc.gov: Expiration Date

In simple words: The day a contract ends.

derivatives

Externally owned account (EOA)

Externally Owned Accounts (EOAs) are the most common type of Ethereum account. They are controlled by a person through private keys/recovery phrase. More on Ethereum wallets.
— ethereum.org: Externally owned account

In simple words: A normal wallet controlled by a private key.

Extrinsic Value

See Time Value.
— cftc.gov: Extrinsic Value

In simple words: The part of an option price that is not intrinsic value.

Fakeout

A fakeout is a sudden and temporary move in a market that tricks traders into thinking that a trend is emerging when, in fact, it is not.
— coinmarketcap.com: Fakeout

In simple words: A breakout that fails and quickly reverses.

Falling Knife

A falling knife refers to the price dive of an asset and denotes a downward momentum of the financial market.
— coinmarketcap.com: Falling Knife

In simple words: A coin crashing fast; buying it is risky.

Falling Wedge

Falling wedges, also known as descending wedges, have a distinct downward slope and a bullish bias in comparison to symmetrical triangles, which have no discernible slope and no bias.
— coinmarketcap.com: Falling Wedge

In simple words: A downward-sloping, narrowing pattern often read as bullish.

FATF Travel Rule

The FATF Travel Rule requires virtual asset service providers to regulate information sharing for certain large transactions.
— coinmarketcap.com: FATF Travel Rule

In simple words: Exchanges must pass on sender and receiver details for transfers.

Faucet

A service carried out via smart contract that dispenses funds in the form of free test ether that can be used on a testnet.
— ethereum.org: Faucet

In simple words: A site handing out free test coins.

Federal Reserve (Fed)

The central bank of the United States; conducts monetary policy to promote maximum employment, stable prices and moderate long-term interest rates.
— federalreserve.gov: Federal Reserve

In simple words: America's central bank, which sets interest rates.

Fee Tiers

Fee tiers refer to the fee structure that determines the amount charged when investors deposit or withdraw money and execute trades on a crypto exchange.
— coinmarketcap.com: Fee Tiers

In simple words: Lower fees for higher trading volume.

Fiat

Fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, with its own banking system, such as fractional reserve banking.
— coinmarketcap.com: Fiat

In simple words: Government money such as euros or dollars.

Fiat On-Ramp

A fiat-on ramp is a way to get cryptocurrency from fiat, or regular money.
— coinmarketcap.com: Fiat On-Ramp

In simple words: A way to buy crypto with normal money.

Fiat-Pegged Cryptocurrency

A coin, token or asset issued on a blockchain that is linked to a government or bank-issued currency.
— coinmarketcap.com: Fiat-Pegged Cryptocurrency

In simple words: A coin tied to a currency like the dollar.

Fibonacci Numbers

A number sequence discovered by a thirteenth century Italian mathematician Leonardo Fibonacci (circa 1170-1250), who introduced Arabic numbers to Europe, in which the sum of any two consecutive numbers equals the next highest number—i.e., following this sequence: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, …
— cftc.gov: Fibonacci Numbers

In simple words: The number sequence behind Fibonacci levels.

Evidence (Mixed / preprint): Shanaev & Gibson (2022) found Fibonacci levels prominent for stock indices and FX, and an S&P 500 strategy showed excess return. It is an unreviewed preprint. A later backtest says the effect has faded since publication. Shanaev & Gibson (2022), SSRN 4212430 (preprint). Paperswithbacktest: post-publication backtest.

Fibonacci Retracement Level

The Fibonacci retracement method uses a set of key numbers called Fibonacci ratios to identify the support and resistance levels of an asset/stock/cryptocurrency.
— coinmarketcap.com: Fibonacci Retracement Level

In simple words: Lines at Fibonacci ratios (usually 23.6, 38.2, 50, 61.8 and 78.6% of a prior move) that traders watch as possible support or resistance. 50% is not a Fibonacci ratio.

Evidence (Mixed / preprint): Shanaev & Gibson (2022) found Fibonacci levels prominent for stock indices and FX, and an S&P 500 strategy showed excess return. It is an unreviewed preprint. A later backtest says the effect has faded since publication. Shanaev & Gibson (2022), SSRN 4212430 (preprint). Paperswithbacktest: post-publication backtest.

Fictitious Trading

Wash trading, bucketing, cross trading, or other schemes which give the appearance of trading but actually no bona fide, competitive trade has occurred.
— cftc.gov: Fictitious Trading

In simple words: Fake trades that create a false picture.

Fill

The execution of an order.
— cftc.gov: Fill

In simple words: Your order got executed.

Fill or Kill Order (FOK)

An order that demands immediate execution or cancellation. Typically involving a designation, added to an order, instructing the broker to offer or bid (as the case may be) one time only; if the order is not filled immediately, it is then automatically cancelled.
— cftc.gov: Fill or Kill Order

In simple words: Fill it all immediately or cancel it.

orders

Final Settlement Price

The price at which a cash-settled futures contract is settled at maturity, pursuant to a procedure specified by the exchange.
— cftc.gov: Final Settlement Price

In simple words: The price used to settle a contract at expiry.

Finality

Finality is the guarantee that a set of transactions cannot be changed without a huge amount of ETH being lost.
— ethereum.org: Finality

In simple words: The point at which a transaction can no longer be reversed.

Financial Action Task Force (FATF)

The FATF is a global organization that sets global standards to combat money laundering and terrorist financing (AML/CFT).
— coinmarketcap.com: Financial Action Task Force

In simple words: The global body setting anti-money-laundering rules.

First Notice Day

The first day on which notices of intent to deliver actual commodities against futures market positions can be received. First notice day may vary with each commodity and exchange.
— cftc.gov: First Notice Day

In simple words: The first day a futures holder can be asked to take delivery.

First-Mover Advantage (FMA)

First-Mover Advantage (FMA) refers to a company/organization that launches a breakthrough product or service in the market to gain an advantage over its competitors.
— coinmarketcap.com: First-Mover Advantage

In simple words: Being first to market gives a head start.

Fish

Someone who has a small crypto investment.
— coinmarketcap.com: Fish

In simple words: Someone with a small crypto holding.

Flag

A small rectangle pattern that slopes against the previous trend.
— chartschool.stockcharts.com: Flag

In simple words: A short pause tilted against a strong move.

Flash Crash

A flash crash is a market condition where an asset’s price falls very rapidly within a very brief time interval.
— coinmarketcap.com: Flash Crash

In simple words: A very fast, very deep price drop that often recovers quickly.

Flash Loan

A flash loan is a transaction in which a specific quantity of liquidity is borrowed and repaid in the same transaction or block.
— coinmarketcap.com: Flash Loan

In simple words: A loan borrowed and repaid within one transaction.

Flash Loan Attack

Flash loan attacks are when malicious actors exploit a smart contract.
— coinmarketcap.com: Flash Loan Attack

In simple words: A hack using a huge instant loan.

Flash Loans

Flash loans are a type of uncollateralized lending used in decentralized finance (DeFi).
— coinmarketcap.com: Flash Loans

In simple words: A loan that must be borrowed and repaid in the same transaction.

Flippening

A hypothetical scenario where Ethereum's market cap overtakes Bitcoin's.
— coinmarketcap.com: Flippening

In simple words: The idea that ether could become bigger than bitcoin.

Flipping

An investment strategy where you buy something with the goal of reselling for a profit later, usually in a short period of time.
— coinmarketcap.com: Flipping

In simple words: Buying to resell quickly for profit.

FOMC

Twelve members: the seven Board governors, the New York Fed president and four of the other eleven Reserve Bank presidents on one-year rotation.
— federalreserve.gov: FOMC

In simple words: The Fed committee that decides US interest rates.

macro Read the full entry →

FOMO (fear of missing out)

Merriam-Webster (informal): fear of not being included in something that others are experiencing. First known use 2004.
— merriam-webster.com: FOMO

In simple words: The urge to jump into a trade because everyone else seems to be making money.

Foreign Exchange

Trading in foreign currency.
— cftc.gov: Foreign Exchange

In simple words: Trading one currency for another.

Foreign Exchange Forward

A transaction that solely involves the exchange of two different currencies on a specific future date at a fixed rate agreed upon on the inception of the contract covering the exchange. See 7 USC 1a(24).
— cftc.gov: Foreign Exchange Forward

In simple words: Agreeing today on a currency rate for later.

Foreign Exchange Swap

A transaction that solely involves both an exchange of two different currencies on a specific date at a fixed rate that is agreed upon on the inception of the contract covering the exchange; and a reverse exchange of the same two currencies at a later date and at a fixed rate that is agreed upon on …
— cftc.gov: Foreign Exchange Swap

In simple words: Swapping currencies now and swapping back later.

Forex

Refers to the over-the-counter market for foreign exchange transactions. Also called the foreign exchange market.
— cftc.gov: Forex

In simple words: The currency market.

markets Read the full entry →

Fork

A change in protocol causing the creation of an alternative chain.
— ethereum.org: Fork

In simple words: The chain splits into two versions.

Forward Contract

A cash transaction common in many industries, including commodity merchandising, in which a commercial buyer and seller agree upon delivery of a specified quality and quantity of goods at a specified future date. Terms may be more 'personalized' than is the case with standardized futures contracts (i.e., delivery time and amount are as determined between seller and buyer). A price may be agreed upon in advance, or there may be agreement that the price will be determined at the time of delivery.
— cftc.gov: Forward Contract

In simple words: An agreement to trade later at a price fixed today.

derivatives

Framing effect

Framing effect is a cognitive bias where people's decisions change depending on how options or statements are framed, even when they are logically identical. Studies show that when both choices are framed positively as gains, the majority of people prefer a …
— en.wikipedia.org: Framing effect

In simple words: The same choice feels different depending on how it is worded.

Fraud proof

A security model for certain layer 2 solutions where, to increase speed, transactions are rolled up into batches and submitted to Ethereum in a single transaction. Other network participants can re-execute the transactions to check that they were executed …
— ethereum.org: Fraud proof

In simple words: Proof that a rollup transaction was wrong.

Front Month

The spot or nearby delivery month, the nearest traded contract month. See Back Month.
— cftc.gov: Front Month

In simple words: The contract that expires soonest.

futures

Front Running

With respect to commodity futures and options, taking a futures or option position based upon non-public information regarding an impending transaction by another person in the same or related future or option. Also known as trading ahead.
— cftc.gov: Front Running

In simple words: Trading ahead of a client's order to profit from it. Illegal.

fraud

FUD [2021]

An acronym that stands for “Fear, Uncertainty and Doubt.” It is a strategy to influence perception of certain cryptocurrencies or the cryptocurrency market in general by spreading negative, m
— coinmarketcap.com: FUD [2021]

In simple words: Scary news or rumours, true or not, that make people sell.

Full Carrying Charge

Full Carry. See Carrying Charges.
— cftc.gov: Full Carrying Charge

In simple words: Futures priced to reflect all holding costs.

Fully Diluted Value (FDV)

FDV is the total worth or market cap of a cryptocurrency if the entire supply of tokens were in circulation.
— coinmarketcap.com: Fully Diluted Value

In simple words: What the market cap would be if every coin were already out.

Fundamental Analysis

Study of basic, underlying factors that will affect the supply and demand of the commodity being traded in futures contracts. See Technical Analysis.
— cftc.gov: Fundamental Analysis

In simple words: Studying the value behind an asset.

analysis

Funding Payments

Funding payments are periodic payments between traders. These are designed to reduce the discrepancy between the perpetual market price and the spot market price.
— coinmarketcap.com: Funding Payments

In simple words: Regular payments between longs and shorts on perpetual futures.

Futures commission merchant (FCM)

A firm that holds client money for futures trading.

Futures Contract

An agreement to purchase or sell a commodity for delivery in the future: (1) at a price that is determined at initiation of the contract; (2) that obligates each party to the contract to fulfill the contract at the specified price; (3) that is used to assume or shift price risk; and (4) that may be satisfied by delivery or offset.
— cftc.gov: Futures Contract

In simple words: A standardised exchange contract to buy or sell later at a set price.

derivatives futures Read the full entry →

Futures Option

An option on a futures contract.
— cftc.gov: Futures Option

In simple words: An option on a futures contract.

FVG (fair value gap)

Trader jargon, no official definition

A three-candle zone where the wicks of candles 1 and 3 do not overlap, leaving a price gap. Related to the classical "gap" concept. No evidence base.

In simple words: A spot where price moved so fast it left an empty gap.

Gambler's fallacy

The gambler's fallacy, also known as the Monte Carlo fallacy or the fallacy of the maturity of chances, is the belief that an independent and equally probable outcome which happened less frequently than expected is more likely to happen in the future. The …
— en.wikipedia.org: Gambler's fallacy

In simple words: Thinking a win is "due" after a string of losses.

Game Theory

Game theory is a way of creating a simplified interactive environment (a ‘game’) that allows researchers to model how people and entities will respond to certain actions.
— coinmarketcap.com: Game Theory

In simple words: The study of strategy when your result depends on others.

GameStop short squeeze

In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of …
— en.wikipedia.org: GameStop short squeeze

In simple words: 2021: retail buyers forced a huge short squeeze in GameStop.

Gamma

A measurement of how fast the delta of an option changes, given a unit change in the underlying futures price; the 'delta of the delta.'
— cftc.gov: Gamma

In simple words: How fast delta changes.

Gas

Gas is the fee paid for transactions and smart contracts on a blockchain, like Ethereum. More on gas and fees.
— ethereum.org: Gas

In simple words: The fee unit for doing things on Ethereum.

Gas limit

The maximum amount of gas a transaction or block may consume.
— ethereum.org: Gas limit

In simple words: The most gas you allow a transaction to use.

Gas price

Price in ether of one unit of gas specified in a transaction.
— ethereum.org: Gas price

In simple words: What you pay per unit of gas.

Gems

Gem is a term for relatively unknown low-cap coins that have immense potential or are grossly undervalued.
— coinmarketcap.com: Gems

In simple words: A small, little-known coin people hope will rise a lot.

Genesis Block

The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1.
— coinmarketcap.com: Genesis Block

In simple words: The very first block of a blockchain.

Gold standard

A gold standard is a monetary system in which the standard economic unit of account is defined by a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the late 1920s to …
— en.wikipedia.org: Gold standard

In simple words: Money backed by and exchangeable for gold.

Golden Cross

Golden cross is a bullish technical trading indicator that signals an imminent price rise of the asset/stock/cryptocurrency.
— coinmarketcap.com: Golden Cross

In simple words: The 50-day average crosses above the 200-day average. Read as bullish; no guarantee.

Good This Week

Order (GTW) Order which is valid only for the week in which it is placed.
— cftc.gov: Good This Week

In simple words: An order valid until the end of the week.

Good Till Canceled Order (GTC)

An order which is valid until cancelled by the customer. Unless specified GTC, unfilled orders expire at the end of the trading day. See Open Order.
— cftc.gov: Good Till Canceled Order

In simple words: An order that stays until you cancel it.

orders Read the full entry →

Governance Token

A governance token is a token that can be used to vote on decisions that influence an ecosystem.
— coinmarketcap.com: Governance Token

In simple words: A token that gives voting rights.

Gray Swan Event

Gray swan is a significant event whose occurrence could be predicted, but the likelihood is low.
— coinmarketcap.com: Gray Swan Event

In simple words: A rare event you could see coming but that is unlikely.

Greater Fool Theory

The greater fool theory was first discussed by professor Burton Malkiel. It suggests that there is always a “greater fool” that you can sell an overvalued asset to.
— coinmarketcap.com: Greater Fool Theory

In simple words: Buying something overpriced, hoping someone else will pay even more.

Green Candle

A green candle is an indication of the price closing higher than the opening price.
— coinmarketcap.com: Green Candle

In simple words: A candle that closed higher than it opened.

Gwei

Short for gigawei, a denomination of ether, commonly utilized to price gas. 1 gwei = 109 wei. 109 gwei = 1 ether.
— ethereum.org: Gwei

In simple words: A tiny unit of ether used to price gas.

Haircut

In computing the value of assets for purposes of capital, segregation, or margin requirements, a percentage reduction from the stated value (e.g., book value or market value) to account for possible declines in value that may occur before assets can be liquidated.
— cftc.gov: Haircut

In simple words: Discount applied to collateral value.

Hammer

Forms when price moves significantly lower after the open but rallies to close well above the intraday low.
— chartschool.stockcharts.com: Hammer

In simple words: A candle with a long lower stick: sellers pushed down, buyers pushed back.

Hard Cap

A hard cap is the absolute maximum supply of a digital asset.
— coinmarketcap.com: Hard Cap

In simple words: The absolute maximum supply.

Hard fork

A permanent divergence in the blockchain; also known as a hard-forking change. One commonly occurs when nonupgraded nodes can't validate blocks created by upgraded nodes that follow newer consensus rules. Not to be confused with a fork, soft fork, software …
— ethereum.org: Hard fork

In simple words: A rule change that old software does not accept.

Hard Peg

A hard peg is an exchange rate policy, where a currency is set at a fixed rate against another currency.
— coinmarketcap.com: Hard Peg

In simple words: A fixed exchange rate.

Hardware Security Module

A hardware security module is a type of computing device that secures digital keys and encrypts data.
— coinmarketcap.com: Hardware Security Module

In simple words: A secure device that guards keys.

Hardware Wallet

A hardware wallet is a wallet for cryptocurrencies that usually resemble a USB stick.
— coinmarketcap.com: Hardware Wallet

In simple words: A small device that keeps your keys offline.

Hash

A fixed-length fingerprint of variable-size input, produced by a hash function. (See keccak-256).
— ethereum.org: Hash

In simple words: A unique fingerprint of data.

Hash rate

The number of hash calculations made per second by computers running mining software.
— ethereum.org: Hash rate

In simple words: How much computing power is securing the network.

Hashed Timelock Contract (HTLC)

A hashed timelock contract (HTLC) is an agreement between two parties that requires no trust between two users by offering special features to reduce risk.
— coinmarketcap.com: Hashed Timelock Contract

In simple words: A contract that pays only with a secret before a deadline.

Head and shoulders

A chart formation resembling a head and shoulders, generally considered predictive of a price reversal.
— cftc.gov: Head and shoulders

In simple words: Three peaks, the middle one highest; often seen before a trend turns.

Hedge Fund

A hedge fund is pooled investment fund that employs a number of investment strategies in a variety of liquid asset classes.
— coinmarketcap.com: Hedge Fund

In simple words: A private fund using many strategies, often with leverage.

Hedge Ratio

Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk.
— cftc.gov: Hedge Ratio

In simple words: How much hedge you use per unit of exposure.

futures

Hedger

A market participant who enters into positions in a futures or other derivatives market opposite to positions held in the cash market to minimize the risk of financial loss from an adverse price change; or who purchases or sells futures as a temporary substitute for a cash transaction that will occur later. One can hedge either a long cash market position (e.g., one owns the cash commodity) or a short cash market position (e.g., one plans on buying the cash commodity in the future)
— cftc.gov: Hedger

In simple words: Taking a trade that offsets another risk.

Herd behavior

Herd behavior is the behavior of individuals in a group acting collectively without centralized direction. The term refers to behavior in animals in herds, packs, bird flocks, fish schools, etc. Voting, demonstrations, riots, general strikes, sporting events, …
— en.wikipedia.org: Herd behavior

In simple words: Doing what the crowd does.

Heuristic

A heuristic or heuristic technique is any approach to problem solving that employs a pragmatic method that is not necessarily optimized, perfected, or rationalized, but is nevertheless "good enough" as an approximation or attribute substitution. Where finding …
— en.wikipedia.org: Heuristic

In simple words: A mental shortcut. Fast, but sometimes wrong.

Hidden Quantity Order

An order placed on an electronic trading system whereby only a portion of the order is visible to other market participants. As the displayed part of the order is filled, additional quantities become visible. Also called Iceberg, Max Show.
— cftc.gov: Hidden Quantity Order

In simple words: An order showing only part of its size.

orders

Hindsight bias

Hindsight bias, also known as the knew-it-all-along phenomenon or creeping determinism, is the common tendency for people to perceive past events as having been more predictable than they were.
— en.wikipedia.org: Hindsight bias

In simple words: "I knew it all along" after the fact.

Historical Volatility

A statistical measure of the volatility (specifically, the annualized standard deviation) of a futures contract, security, or other instrument over a specified number of past trading days.
— cftc.gov: Historical Volatility

In simple words: How much the price actually moved in the past.

HODL

A type of passive investment strategy where you hold an investment for a long period of time, regardless of any changes in the price or markets.
— coinmarketcap.com: HODL

In simple words: Holding a coin for a long time and not selling when the price drops.

Origin: a Bitcointalk post titled "I AM HODLING", dated December 18, 2013 (source). "Hold on for dear life" is a later backronym.

Honeypot

A honeypot is a scam used in the crypto industry to trap victims and steal their assets or sensitive information.
— coinmarketcap.com: Honeypot

In simple words: A scam token you can buy but not sell.

Hosted Wallet

A wallet managed by a third-party service.
— coinmarketcap.com: Hosted Wallet

In simple words: A wallet run by a company for you.

Hot hand

The hot hand is the putative tendency for an athlete to have streaks of success higher than their average performance. The concept is often applied to sports and skill-based tasks in general and originates from basketball, where a shooter is assumed to be …
— en.wikipedia.org: Hot hand

In simple words: Believing a winning streak will continue.

Hot Storage

The online storage of private keys allowing for quicker access to cryptocurrencies. *see Cold Storage.
— coinmarketcap.com: Hot Storage

In simple words: Keeping crypto online for quick use.

Hot Wallet

A cryptocurrency wallet that is connected to the internet for hot storage of cryptoassets.
— coinmarketcap.com: Hot Wallet

In simple words: A wallet connected to the internet: handy but less safe.

Howey Test

A test used to determine whether or not an asset is a security.
— coinmarketcap.com: Howey Test

In simple words: The US test for whether something counts as a security.

HTF / LTF (higher / lower time frame)

Trader jargon, no official definition

Short for the longer and shorter chart time frames used together in multi-time-frame analysis.

In simple words: The "big picture" chart and the "zoomed-in" chart.

Hyperbolic discounting

In economics, hyperbolic discounting is a time-inconsistent model of delay discounting. It is one of the cornerstones of behavioral economics and its brain-basis is actively being studied by neuroeconomics researchers.
— en.wikipedia.org: Hyperbolic discounting

In simple words: Wanting a reward now over a bigger one later.

Hyperinflation

Hyperinflation is defined as unrestricted growth in prices for goods and services in an economy. It happens when resources become limited, such as gas or food.
— coinmarketcap.com: Hyperinflation

In simple words: Prices rising extremely fast; money loses value quickly.

Iceberg

See Hidden Quantity Order.
— cftc.gov: Iceberg

In simple words: A big order that shows only a small part.

Illusion of control

The illusion of control is the tendency for people to overestimate their ability to control events. It was named by American psychologist Ellen Langer and is thought to influence gambling behavior and belief in the paranormal. Along with illusory superiority …
— en.wikipedia.org: Illusion of control

In simple words: Thinking you control outcomes that are really luck.

Impermanent Loss

Impermanent loss is when a liquidity provider has a temporary loss of funds because of volatility in a trading pair.
— coinmarketcap.com: Impermanent Loss

In simple words: Being worse off in a pool than if you had simply held the tokens.

Implied Volatility

The volatility of a futures contract, security, or other instrument as implied by the prices of an option on that instrument, calculated using an options pricing model.
— cftc.gov: Implied Volatility

In simple words: How much movement the option price "expects".

In-The-Money

A term used to describe an option contract that has a positive value if exercised. A call with a strike price of $1100 on gold trading at $1150 is in-the-money 50 dollars. See Intrinsic Value.
— cftc.gov: In-The-Money

In simple words: The option would be worth something if used now.

Infinite Approval

Pre-approving smart contracts to enable the platform to spend any amount of your coins.
— coinmarketcap.com: Infinite Approval

In simple words: Letting a contract spend unlimited amounts of your tokens. Risky.

Information overload

Information overload, also known as infobesity, infoxication, or information anxiety, is the difficulty in understanding an issue and effectively making decisions when one has too much information (TMI) about that issue, and is generally associated with the …
— en.wikipedia.org: Information overload

In simple words: Too much information makes decisions worse.

Initial Coin Offering (ICO)

Short for Initial Coin Offering, an ICO is a type of crowdfunding, or crowdsale, using cryptocurrencies as a means of raising capital for early-stage companies.
— coinmarketcap.com: Initial Coin Offering

In simple words: A project sells new tokens to raise money. Many ICOs failed or were scams.

Initial Dex Offering (IDO)

An initial dex offering (IDX) is an alternative to an initial coin offering (ICO).
— coinmarketcap.com: Initial Dex Offering

In simple words: A token launch on a decentralised exchange.

Initial Exchange Offering

A type of crowdfunding where crypto start-ups generate capital by listing through an exchange.
— coinmarketcap.com: Initial Exchange Offering

In simple words: A token sale run on an exchange.

Initial Margin

Customers' funds put up as security for a guarantee of contract fulfillment at the time a futures market position is established. See Original Margin.
— cftc.gov: Initial Margin

In simple words: The deposit needed to open a trade.

leverage futures Read the full entry →

Initial Public Offering (IPO)

An initial public offering (IPO) is the process of a company offering shares for purchase on the stock market for the first time.
— coinmarketcap.com: Initial Public Offering

In simple words: A company sells shares to the public for the first time.

Insider Trading

Insider trading happens when someone purchases or sells stocks while possessing private, material information about that stock.
— coinmarketcap.com: Insider Trading

In simple words: Trading on secret company information. Illegal.

Instamine

When a large portion of a coin’s total supply is distributed to investors shortly after launch.
— coinmarketcap.com: Instamine

In simple words: Many coins mined right after launch, often by insiders.

Institutional Investor

An Institutional Investor is an organization or a legal entity that trades in the market on behalf of its clients that may be retail investors.
— coinmarketcap.com: Institutional Investor

In simple words: A big organisation investing for others (pension fund, bank).

Insurance Fund

An exchange insurance fund is used to cover any unexpected losses from leveraged trading. This fund is used to prevent traders from bankruptcy in the event of liquidations.
— coinmarketcap.com: Insurance Fund

In simple words: Exchange money used to cover losses when liquidations go badly.

Intercontinental Exchange (ICE)

The Intercontinental Exchange (ICE) is an American company founded in 2000 to purchase and operate global exchanges and clearing houses.
— coinmarketcap.com: Intercontinental Exchange

In simple words: A big exchange group that owns the NYSE.

Interest Rates

A time-dependent charge or return made in proportion to the amount of money deposited, borrowed or lent.
— coinmarketcap.com: Interest Rates

In simple words: The price of borrowing money.

Internal transaction

A transaction sent from a contract account to another contract account or an EOA (see message).
— ethereum.org: Internal transaction

In simple words: A transaction triggered by a contract.

Intrinsic Value

A measure of the value of an option or a warrant if immediately exercised, that is, the extent to which it is in-the-money. The amount by which the current price for the underlying commodity or futures contract is above the strike price of a call option or below the strike price of a put option for …
— cftc.gov: Intrinsic Value

In simple words: What an option is worth if used right now.

Introducing Broker

(IB) A person (other than a person registered as an associated person of a futures commission merchant) who is engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on an exchange who does not accept any money, securities, or property to margin, …
— cftc.gov: Introducing Broker

In simple words: A broker who brings in clients but does not hold their money.

Inverted Market

A futures market in which the nearer months are selling at prices higher than the more distant months; a market displaying 'inverse carrying charges,' characteristic of markets with supply shortages. See Backwardation.
— cftc.gov: Inverted Market

In simple words: Near-month futures priced above later months.

Isolated margin

Maximum loss for a position is limited to its initial margin plus any extra margin added.
— bybit.com: Isolated margin

In simple words: Only the money you assign to one trade is at risk.

Issuance

The minting of new ether to reward block proposal, attestation and whistle-blowing.
— ethereum.org: Issuance

In simple words: New coins being created.

John Law's Company

John Law's Company, founded in 1717 by Scottish economist and financier John Law, was a joint-stock company that occupies a unique place in French and European monetary history, as it was for a brief moment granted the entire revenue-raising capacity of the …
— en.wikipedia.org: John Law's Company

In simple words: The French company behind the 1720 Mississippi Bubble.

JOMO

Joy of missing out (JOMO) is the opposite of having a fear of missing out (FOMO.)
— coinmarketcap.com: JOMO

In simple words: Being happy to sit out the hype.

Kelly criterion

A formula for bet size if you knew your true odds.

risk Read the full entry →

Keystore

Every account’s private key/address pair exists as a single keyfile in an Ethereum client. These are JSON text files which contains the encrypted private key of the account, which can only be decrypted with the password entered during account creation.
— ethereum.org: Keystore

In simple words: An encrypted file holding a private key.

Kimchi Premium

Kimchi premium is a phenomenon occurring in South Korean crypto exchanges, making valuations appear higher than on other international exchanges.
— coinmarketcap.com: Kimchi Premium

In simple words: Crypto trading at higher prices in South Korea than elsewhere.

Klinger Oscillator

The Klinger volume oscillator is a volume-based technical indicator that compares volume to price to forecast price reversals in the financial markets.
— coinmarketcap.com: Klinger Oscillator

In simple words: A volume-based indicator.

Knock-Out

A provision in an option or other derivative contract, whereby the contract is immediately canceled if the price of the underlying instrument reaches a specified level during the life of the contract.
— cftc.gov: Knock-Out

In simple words: An option that dies if price hits a level.

Know Your Customer (KYC)

Short for Know Your Customer, these are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers.
— coinmarketcap.com: Know Your Customer

In simple words: The exchange checks who you are.

Lambo

Slang for the type of car that many crypto enthusiasts aspire to buy when their digital assets “moon” — or rise in value substantially.
— coinmarketcap.com: Lambo

In simple words: Crypto joke about getting rich enough for a Lamborghini.

Large Traders

A large trader is one who holds or controls a position in any one future or in any one option expiration series of a commodity on any one exchange equaling or exceeding the exchange or CFTC-specified reporting level.
— cftc.gov: Large Traders

In simple words: Traders big enough to be reported to the CFTC.

Laser Eyes

Laser eyes is a viral Twitter meme that is used by Bitcoiners who attempt to push the price of BTC to its new all-time highs.
— coinmarketcap.com: Laser Eyes

In simple words: A meme where bitcoin fans add laser eyes to their profile picture.

Last Notice Day

The final day on which notices of intent to deliver on futures contracts may be issued.
— cftc.gov: Last Notice Day

In simple words: The last day for delivery notices.

Latency

The amount of time that elapses between the placement of a market order or marketable limit order on an electronic trading system and the execution of that order.
— cftc.gov: Latency

In simple words: The delay between sending an order and its arrival.

Layer 1

Layer 1 refers to the main blockchain in a multi-level blockchain network. For example, Ethereum and Bitcoin are layer one blockchains. Many layer two blockchain offload resource-intense transactions to their separate blockchain, while continuing to use …
— ethereum.org: Layer 1

In simple words: The main blockchain itself, such as Ethereum or Bitcoin.

Layer 2

Layer 2s are another networks built on top of Ethereum main network to make transactions faster and cheaper. More on layer 2.
— ethereum.org: Layer 2

In simple words: A faster, cheaper network built on top of a main chain.

Leaps

Long-dated, exchange-traded options. Stands for 'Long-term Equity Anticipation Securities.' leverage The ability to control large dollar amounts of a commodity or security with a comparatively small amount of capital.
— cftc.gov: Leaps

In simple words: Options with a very long life.

Lending Pool

Lending pools are smart contracts that people can use to permissionlessly lend and borrow cryptocurrency.
— coinmarketcap.com: Lending Pool

In simple words: A shared pot of crypto people lend from.

Leverage

The ability to control large dollar amounts of a commodity or security with a comparatively small amount of capital.
— cftc.gov: leverage

In simple words: Borrowed power: control a big position with little money.

leverage risk Read the full entry →

Leveraged Tokens

In the world of cryptocurrencies, leveraged tokens give you a leveraged position in trading, meaning that your earnings and losses are multiplied.
— coinmarketcap.com: Leveraged Tokens

In simple words: Tokens that give built-in leverage; they can decay over time.

Light client

An Ethereum client that does not store a local copy of the blockchain, or validate blocks and transactions. It offers the functions of a wallet and can create and broadcast transactions.
— ethereum.org: Light client

In simple words: A node that checks the chain without storing everything.

Lightning Network

A second-layer protocol that is designed to solve Bitcoin’s scalability problem by allowing transactions to be processed more quickly.
— coinmarketcap.com: Lightning Network

In simple words: A layer on top of Bitcoin for fast, cheap payments.

Limit Move

See Locked Limit.
— cftc.gov: Limit Move

In simple words: The price moved its full daily limit.

futures rules

Limit only

The definite price stated by a customer to a broker restricting the execution of an order to buy for not more than, or to sell for not less than, the stated price.
— cftc.gov: Limit only

In simple words: A limit order that may only fill at your price or better.

Limit Order

An order in which the customer specifies a minimum sale price or maximum purchase price, as contrasted with a market order, which implies that the order should be filled as soon as possible at the market price.
— cftc.gov: Limit Order

In simple words: Buy or sell only at your price or better.

orders Read the full entry →

Liquid market / liquidity

A market where buying and selling can be done with minimal effect on price.
— cftc.gov: Liquid market / liquidity

In simple words: You can trade easily without moving the price much.

Liquid Staking Derivatives

Liquid Staking Derivatives (LSDs) are tokens that represent staked assets in a DeFi protocol.
— coinmarketcap.com: Liquid Staking Derivatives

In simple words: Tokens that represent staked coins.

Liquid staking tokens

A derivative token that represents ownership of the locked cryptocurrency that a user is staking. Upon staking an asset, some platforms allow minting of liquid staking tokens (LSTs), which represent an equivalent share of the locked tokens. These LSTs can …
— ethereum.org: Liquid staking tokens

In simple words: A tradeable receipt for staked coins.

Liquidation

The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering. See Cover, Offset.
— cftc.gov: Liquidation

In simple words: Closing a position, voluntarily or by force when margin runs out.

positions risk

Liquidity

Liquidity is how quickly and easily an asset can be converted into cash or another asset. Decentralized exchanges like Uniswap have multiple liquidity pools where asset holders can deposit their assets where traders can buy and sell them in a decentralized …
— ethereum.org: Liquidity

In simple words: How easily something can be bought or sold.

markets Read the full entry →

Liquidity Pool

Liquidity pools are crypto assets that are kept to facilitate the trading of trading pairs on decentralized exchanges.
— coinmarketcap.com: Liquidity Pool

In simple words: A pot of tokens that traders swap against.

Liquidity sweep / stop hunt

Trader jargon, no official definition

Price briefly runs past an obvious high or low (where stops cluster) and then reverses. Compare swing failure pattern.

In simple words: Price grabs the stops above or below a level, then turns back.

Liquidity tokens

Liquidity tokens (LST) are digital tokens issued to participants who deposit assets into a liquidity pool, which is a collection of funds locked in a smart contract and used to facilitate trading on a decentralized exchange (DEX).These tokens represent the …
— ethereum.org: Liquidity tokens

In simple words: A receipt token you get for depositing into a liquidity pool.

Loan-to-value (LTV)

Used by lenders, loan-to-value (LTV) is the assessment ratio of risk involved while approving a loan. Simply, it is the ratio of the loan's value to the value of the collateral.
— coinmarketcap.com: Loan-to-value

In simple words: Loan size compared to collateral value.

London Stock Exchange

The London Stock Exchange (LSE) is a global stock exchange based in Paternoster Square in the City of London, England. Founded in 1801, it is one of the world's oldest continuously operating stock exchanges. As of mid-2025, the exchange had a total market …
— en.wikipedia.org: London Stock Exchange

In simple words: The UK's main stock exchange.

Long

(1) One who has bought a futures contract to establish a market position; (2) a market position that obligates the holder to take delivery; (3) one who owns an inventory of commodities. See Short.
— cftc.gov: Long

In simple words: You bought and profit if the price rises.

positions Read the full entry →

Long Hedge

See Buying Hedge.
— cftc.gov: Long Hedge

In simple words: Buying futures to protect against rising prices.

Long-Term Capital Management

Long-Term Capital Management L.P. (LTCM) was an American hedge fund which used highly leveraged strategies. In 1998 when LTCM was on the verge of collapse, the fund received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together …
— en.wikipedia.org: Long-Term Capital Management

In simple words: A highly leveraged hedge fund that collapsed in 1998.

Loss aversion

Losses hurt more than equal gains feel good.

psychology Read the full entry →

Lot

A unit of trading. See Even Lot, Job Lot, and Round Lot.
— cftc.gov: Lot

In simple words: A standard trade size.

forex Read the full entry →

MACD

The gap between two moving averages, used as a trend/momentum gauge.

Mainnet

Short for "main network," this is the main public Ethereum blockchain.
— ethereum.org: Mainnet

In simple words: The real network with real money.

Maintenance Margin

See Margin.
— cftc.gov: Maintenance Margin

In simple words: The minimum deposit needed to keep a trade open.

leverage Read the full entry →

Maker

A limit order that is not immediately matched on the order book; makers add liquidity.
— support.kraken.com: Maker

In simple words: You place an order that waits in the book.

Maker/taker fees

Maker fee applies if not matched immediately; taker fee if matched immediately, including all market orders. Live fee levels: link the exchange fee page, do not quote.
— support.kraken.com: Maker/taker fees

In simple words: Waiting orders usually pay less than instant ones.

Managed Money Trader

(MMT) A futures market participant who engages in futures trades on behalf of investment funds or clients. While MMTs are commonly equated with hedge funds, they may include Commodity Pool Operators and other managed accounts as well as hedge funds. While CFTC Form 40 does not provide a place to …
— cftc.gov: Managed Money Trader

In simple words: Funds and advisers trading futures for clients.

Manipulation

Any planned operation, transaction, or practice that causes or maintains an artificial price. Specific types include corners and squeezes as well as unusually large purchases or sales of a commodity or security in a short period of time in order to distort prices, and putting out false information …
— cftc.gov: Manipulation

In simple words: Deliberately pushing prices artificially. Illegal.

Margin

The amount of money or collateral deposited by a customer with his broker, by a broker with a clearing member, or by a clearing member with a clearing organization. The margin is not partial payment on a purchase. Also called Performance Bond. (1) Initial margin is the amount of margin required by the broker when a futures position is opened; (2) Maintenance margin is an amount that must be maintained on deposit at all times. If the equity in a customer's account drops to or below the level of maintenance margin because of adverse price movement, the broker must issue a margin call to restore the customer's equity to the initial level. See Variation Margin. Exchanges specify levels of initial margin and maintenance margin for each futures contract, but futures commission merchants may require their customers to post margin at higher levels than those specified by the exchange. Futures margin is determined by the SPAN margining system, which takes into account all positions in a customer's portfolio.
— cftc.gov: Margin

In simple words: Money you put up as a deposit to hold a leveraged trade.

leverage Read the full entry →

Margin Call

(1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels; (2) a request by the clearing organization to a clearing member to make a deposit of original margin, or a daily or intra-day variation margin payment because of adverse price movement, based on positions carried by the clearing member.
— cftc.gov: Margin Call

In simple words: A demand to add money or have your trade closed.

leverage risk Read the full entry →

Mark price / index price

Fair-value prices exchanges use to avoid manipulation.

crypto

Mark-to-Market

Part of the daily cash flow system used by U.S. futures exchanges to maintain a minimum level of margin equity for a given futures or option contract position by calculating the gain or loss in each contract position resulting from changes in the price of the futures or option contracts at the end of each trading session. These amounts are added or subtracted to each account balance.
— cftc.gov: Mark-to-Market

In simple words: Valuing positions at today's price every day.

futures

Market Capitalization (Market Cap)

Total capitalization of a cryptocurrency’s price, and one of the ways to rank the relative size of a cryptocurrency.
— coinmarketcap.com: Market Capitalization

In simple words: Price times the number of coins: how "big" a coin is.

Market Maker

A professional securities dealer or person with trading privileges on an exchange who has an obligation to buy when there is an excess of sell orders and to sell when there is an excess of buy orders. By maintaining an offering price sufficiently higher than their buying price, these firms are compensated for the risk involved in allowing their inventory of securities to act as a buffer against temporary order imbalances. In the futures industry, this term is sometimes loosely used to refer to a floor trader or local who, in speculating for his own account, provides a market for commercial users of the market. Occasionally a futures exchange will compensate a person with exchange trading privileges to take on the obligations of a market maker to enhance liquidity in a newly listed or lightly traded futures contract. See Specialist System.
— cftc.gov: Market Maker

In simple words: A firm that always offers to buy and sell.

people Read the full entry →

Market Maker, Market Taker

The maker places an order (to buy or sell at a quoted price), while a taker accepts that placed order (to execute the buy or sell at the quoted price)
— coinmarketcap.com: Market Maker, Market Taker

In simple words: Makers add orders to the book; takers fill them.

Market Microstructure

Refers to the means by which individual trades take place. An example of a broad class of market microstructures is an order book. Another such class covers the markets associated with most OTC derivative trading pre-Dodd-Frank Act in which transactions were negotiated bilaterally over the phone.
— cftc.gov: Market Microstructure

In simple words: The study of how trading mechanics affect prices.

Market Order

An order to buy or sell a futures contract at whatever price is obtainable at the time it is entered in the order book, ring, pit, or other trading platform.
— cftc.gov: Market Order

In simple words: Buy or sell now at the best available price.

orders Read the full entry →

Market-if-Touched (MIT) Order

An order that becomes a market order when a particular price is reached. A sell MIT is placed above the market; a buy MIT is placed below the market. Also referred to as a board order. Compare to Stop Order.
— cftc.gov: Market-if-Touched Order

In simple words: An order that becomes a market order once a price is touched.

orders

Market-on-Close

An order to buy or sell at the end of the trading session at a price within the closing range of prices. See Stop-Close-Only Order.
— cftc.gov: Market-on-Close

In simple words: An order filled during the closing period.

Market-on-Opening

An order to buy or sell at the beginning of the trading session at a price within the opening range of prices.
— cftc.gov: Market-on-Opening

In simple words: An order filled at the opening.

Markets in Crypto-Assets (MiCA)

The Markets in Crypto-Assets (MiCA) regulation is a comprehensive regulatory framework instituted by the European Union (EU).
— coinmarketcap.com: Markets in Crypto-Assets

In simple words: The EU's crypto rulebook.

crypto rules Read the full entry →

Marking the Close

A manipulative or disruptive trading practice whereby a trader buys or sells a large number of futures contracts during the closing period of a futures contract (that is, the period during which the futures settlement price is determined) in order to benefit an even larger position in an option, …
— cftc.gov: Marking the Close

In simple words: Trading near the close to move the closing price. Illegal.

Matching Algorithm

A set of rules (encoded in software in the case of electronic markets) for determining when and if bids and offers are matched to one another.
— cftc.gov: Matching Algorithm

In simple words: The rule an exchange uses to match buyers and sellers.

Max Fee Per Gas

The Max Fee is the absolute maximum amount a user is willing to pay per unit of gas (gwei) to get a transaction included in a block.
— ethereum.org: Max Fee Per Gas

In simple words: The most you will pay per gas.

Max Supply

The theoretical maximum number of coins that can be minted, minus any verifiably burned coins.
— coinmarketcap.com: Max Supply

In simple words: The most coins that can ever exist.

Maximal Extractable Value (MEV)

The maximum value that can be extracted from block production in excess of the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block. More on Maximum Extractable Value (MEV).
— ethereum.org: Maximal Extractable Value

In simple words: Profit block builders can make by reordering transactions, sometimes at your expense.

Measured move

A three-part formation that begins as a reversal pattern and resumes as a continuation pattern.
— chartschool.stockcharts.com: Measured move

In simple words: A move, a pause, then a similar-sized move again.

Medium of Exchange

A medium of exchange can be seen as an intermediary instrument or system that is used to facilitate a sale, purchase or even trade of goods between parties.
— coinmarketcap.com: Medium of Exchange

In simple words: Something people use to pay for things.

Memecoin

Memecoins are the crypto tokens created as a joke or meme and claim to offer huge gains to holders.
— coinmarketcap.com: Memecoin

In simple words: A coin based on a joke or meme, often very volatile.

Mempool

Short for "memory pool", the list of pending transactions that each node keeps locally until they are included in a block. There is no single shared mempool. Nodes pass pending transactions to their peers, so each node's copy is similar but not identical, and …
— ethereum.org: Mempool

In simple words: The waiting room for transactions not yet in a block.

Mental accounting

Mental accounting is a model of consumer behaviour developed by Richard Thaler that attempts to describe the process whereby people code, categorize and evaluate economic outcomes. Mental accounting incorporates the economic concepts of prospect theory and …
— en.wikipedia.org: Mental accounting

In simple words: Treating money differently depending on where it came from.

Mercenary Capital

Mercenary capital refers to the opportunistic capital provided by investors seeking to take advantage of the short-term incentive programs conducted by a platform for individual gain.
— coinmarketcap.com: Mercenary Capital

In simple words: Someone who deposits tokens into a pool to earn fees.

Metcalfe’s Law

Metcalfe’s Law is a way of describing the use of networks and highlights that the more users a network has, the more valuable it is to each individual user.
— coinmarketcap.com: Metcalfe’s Law

In simple words: A network becomes more valuable as more people use it.

MEV Protection

MEV protection refers to strategies and tools designed to shield crypto transactions from Maximal Extractable Value (MEV) exploitation.
— coinmarketcap.com: MEV Protection

In simple words: Tools to stop bots from exploiting your transaction.

Micro Cap

A digital asset with a very small market capitalization is referred to as a micro-cap stock/asset/cryptocurrency in the financial sector.
— coinmarketcap.com: Micro Cap

In simple words: A very small coin; often very risky.

Minimum Tick

See Minimum Price Fluctuation.
— cftc.gov: Minimum Tick

In simple words: The smallest price step for a contract.

Mining

The process of repeatedly hashing a block header while incrementing a nonce until the result contains an arbitrary number of leading binary zeros. This is the process by which new blocks are added to a proof-of-work blockchain. This was how Ethereum was …
— ethereum.org: Mining

In simple words: Using computers to add blocks and earn rewards.

Mining Difficulty

The mining difficulty of a cryptocurrency is how difficult it is to find the right hash for the next block.
— coinmarketcap.com: Mining Difficulty

In simple words: How hard it is to mine a block.

Mining Pool

An arrangement where a number of miners pool their resources to increase their chances of finding the next block.
— coinmarketcap.com: Mining Pool

In simple words: Miners teaming up to share rewards.

Minnow

An alternative term to Fish, describing someone with a small crypto investment.
— coinmarketcap.com: Minnow

In simple words: Another word for a small holder.

Mint

Minting is the process of creating new tokens and bringing them into circulation so that they can be used. It's a decentralized mechanism to create a new token without the involvement of the central authority.
— ethereum.org: Mint

In simple words: Creating new tokens.

Momentum

In technical analysis, the relative change in price over a specific time interval.
— cftc.gov: Momentum

In simple words: How fast the price is moving.

Monetary Policy

Monetary policy can be defined as a set of rules that a country’s central bank makes to control the supply of money.
— coinmarketcap.com: Monetary Policy

In simple words: How a central bank steers interest rates and money supply.

Money Flow Index (MFI)

The Money Flow Index (MFI) is a technical indicator that measures the buying or selling pressure of an asset through price and volume.
— coinmarketcap.com: Money Flow Index

In simple words: Like RSI, but with volume included.

Money Laundering

Money laundering is a technique used for illegal businesses to hide their money from the authorities.
— coinmarketcap.com: Money Laundering

In simple words: Hiding where criminal money comes from.

Money Market

A financial market where short-term lending or borrowing takes place.
— coinmarketcap.com: Money Market

In simple words: The market for very short-term borrowing and lending.

Money Transmitter

A business entity that provides money transfer services or payment instruments.
— coinmarketcap.com: Money Transmitter

In simple words: A licensed money-transfer business.

Moon

A situation where there is a continuous upward movement in the price of a cryptocurrency. Often used in communities to question when a cryptocurrency will experience such a phenomenon, saying
— coinmarketcap.com: Moon

In simple words: A price going up and up ("to the moon").

Moving average

An average of data points (usually price) for a specific period; "moving" because each point uses the previous X periods.
— chartschool.stockcharts.com: Moving average

In simple words: The average price of the last X candles, drawn as a line.

indicators Read the full entry →

Mt. Gox

A crypto exchange for buying and selling Bitcoin that closed in 2014 after a major hack.
— coinmarketcap.com: Mt. Gox

In simple words: A big early bitcoin exchange that collapsed after a hack.

Multi-Party Computation (MPC)

Multi-party computation (MPC) is a cryptographic mechanism that distributes computation operations across several parties where no singular entity can see the other parties’ data.
— coinmarketcap.com: Multi-Party Computation

In simple words: Splitting a key among several parties.

Multisig

Multisig (multi signature) refers to a digital wallet or account that requires multiple signatures or approvals to execute transactions, enhancing security.This adds extra security compared to traditional single-signature accounts where only one person's …
— ethereum.org: Multisig

In simple words: A wallet that needs several keys to approve a payment.

Naked Option

The sale of a call or put option without holding an equal and opposite position in the underlying instrument. Also referred to as an uncovered option, naked call, or naked put.
— cftc.gov: Naked Option

In simple words: Selling an option without holding the asset. Big risk.

Nasdaq

The Nasdaq Stock Market is an American stock exchange. It is the largest stock exchange by market capitalization and the first fully electronic stock market. Based in Manhattan, New York City, the exchange is among the most active stock trading venues by …
— en.wikipedia.org: Nasdaq

In simple words: The US exchange known for tech stocks.

Neckline

The line connecting the reaction lows of the peaks in a head-and-shoulders top.
— chartschool.stockcharts.com: Neckline

In simple words: The "floor" line under a head-and-shoulders pattern.

Negative balance protection

An EU retail CFD rule: the overall loss of a retail client is limited to the funds in the CFD account.
— esma.europa.eu: Negative balance protection

In simple words: You cannot lose more than your deposit.

rules Read the full entry →

Negative Volume Index (NVI)

The negative volume index (NVI) is a powerful technical indicator that shows how price is being influenced by low-volume time frames.
— coinmarketcap.com: Negative Volume Index

In simple words: An indicator that tracks price on low-volume days.

Negativity bias

Negativity bias, also known as the negativity effect, is a cognitive bias that human cognition is relatively more affected by a negative effect than an equally potent positive effect. The negativity bias has been investigated across different domains, …
— en.wikipedia.org: Negativity bias

In simple words: Bad news sticks more than good news.

Net Position

The difference between the open long contracts and the open short contracts held by a trader in any one commodity.
— cftc.gov: Net Position

In simple words: Longs minus shorts.

New York Stock Exchange

The New York Stock Exchange is an American stock exchange headquartered at the New York Stock Exchange Building in the Financial District of Lower Manhattan in New York City. It is the second largest stock exchange in the world by market capitalization, …
— en.wikipedia.org: New York Stock Exchange

In simple words: The largest stock exchange in the world.

Newb

A newb is someone that is new to a certain industry.
— coinmarketcap.com: Newb

In simple words: A beginner.

NFA

National Futures Association.
— cftc.gov: NFA

In simple words: The US futures industry's self-regulatory body.

NFP (nonfarm payrolls)

The BLS Current Employment Statistics program produces estimates of nonfarm employment, hours and earnings, surveying about 119,000 businesses and agencies monthly.
— bls.gov: NFP

In simple words: The monthly US jobs number.

macro Read the full entry →

NGMI

NGMI stands for "Not Gonna Make It," and is a slang that's become increasingly popular in the cryptocurrency community.
— coinmarketcap.com: NGMI

In simple words: "Not gonna make it": said of a bad decision or a doomed project.

Nixon shock

The Nixon shock was the effect of a series of economic measures, including wage and price freezes, surcharges on imports, and the unilateral cancellation of the direct international convertibility of the United States dollar to gold, taken by United States …
— en.wikipedia.org: Nixon shock

In simple words: 1971: the US stopped swapping dollars for gold.

No-Coiner

A no-coiner is someone who has no cryptocurrency in his or her investment portfolio and firmly believes that cryptocurrency in general will fail.
— coinmarketcap.com: No-Coiner

In simple words: Someone who owns no crypto and thinks it will fail.

Node

A software client that participates in the network. More on nodes and clients.
— ethereum.org: Node

In simple words: A computer that runs the network software and keeps a copy of the chain.

Non-Custodial

Usually referring to the storage of keys, in relation to wallets or exchanges, a non-custodial setup is one in which private keys are held by the user directly.
— coinmarketcap.com: Non-Custodial

In simple words: Only you hold your keys.

Non-fungible token (NFT)

A unique digital item you can own, like art or collectibles, verified by blockchain technology. More on non-fungible tokens (NFTs).
— ethereum.org: Non-fungible token

In simple words: A unique token, such as a digital collectible.

Nonce

In cryptography, a value that can only be used once. An account nonce is a transaction counter in each account, which is used to prevent replay attacks.
— ethereum.org: Nonce

In simple words: A counter that keeps transactions in order.

Notional Principal

In an interest rate swap, forward rate agreement, or other derivative instrument, the amount or, in a currency swap, each of the amounts to which interest rates are applied in order to calculate periodic payment obligations. Also called the notional amount, the contract amount, the reference …
— cftc.gov: Notional Principal

In simple words: The face amount a derivative is based on.

Offchain

Offchain means any transaction or data that exists outside the blockchain. Because committing every transaction onchain can be expensive and inefficient, third-party tools like oracles that handle pricing data, or layer 2 solutions that execute a higher …
— ethereum.org: Offchain

In simple words: Happening outside the blockchain.

Offset

Liquidating a purchase of futures contracts through the sale of an equal number of contracts of the same delivery month, or liquidating a short sale of futures through the purchase of an equal number of contracts of the same delivery month. See Closing Out and Cover.
— cftc.gov: Offset

In simple words: Closing a trade by doing the opposite trade.

futures

On-Balance Volume (OBV)

On-balance volume (OBV) is a technical trading indicator that forecasts an asset's price movements based on the volume flow.
— coinmarketcap.com: On-Balance Volume

In simple words: A running total of volume on up days minus down days.

Onchain

Refers to actions or transactions that happen on the blockchain and are publicly available.Think of it as writing something in a big, shared notebook that everyone can see and check, making sure that whatever is written (like sending digital money or making a …
— ethereum.org: Onchain

In simple words: Recorded on the blockchain.

One Cancels the Other (OCO) Order

A pair of orders, typically limit orders, whereby if one order is filled, the other order will automatically be cancelled. For example, an OCO order might consist of an order to buy 10 calls with a strike price of 50 at a specified price or buy 20 calls with a strike price of 55 (with the same expiration date) at a specified price.
— cftc.gov: One Cancels the Other Order

In simple words: Two linked orders: when one fills, the other cancels.

orders Read the full entry →

Open Interest

The total number of futures contracts long or short in a delivery month or market that has been entered into and not yet liquidated by an offsetting transaction or fulfilled by delivery. Also called open contracts or open commitments.
— cftc.gov: Open Interest

In simple words: How many contracts are still open.

futures data

Open Order

(or Orders) An order that remains in force until it is canceled or until the futures contracts expire. See Good Till Canceled and Good This Week orders.
— cftc.gov: Open Order

In simple words: An order still waiting to fill.

Open Trade Equity

The unrealized gain or loss on open futures positions.
— cftc.gov: Open Trade Equity

In simple words: Profit or loss on open positions.

Optimism bias

Optimism bias is the tendency of an individual to overestimate the likelihood of positive events and underestimate that of negative events.
— en.wikipedia.org: Optimism bias

In simple words: Expecting good things more than is realistic.

Optimistic rollup

Optimistic Rollup is a Layer 2 solution that speeds up transactions on Ethereum, assuming they're valid by default unless challenged. More on Optimistic rollups.
— ethereum.org: Optimistic rollup

In simple words: A rollup that assumes transactions are valid unless challenged.

Option

A contract that gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or other instrument at a specific price within a specified period of time, regardless of the market price of that instrument. Also see Put and Call.
— cftc.gov: Option

In simple words: The right, not the duty, to buy or sell at a set price.

derivatives Read the full entry →

Option buyer

The person who buys calls, puts, or any combination of calls and puts.
— cftc.gov: Option buyer

In simple words: The person who buys the option right.

Option writer

The person who originates an option contract by promising to perform a certain obligation in return for the price or premium of the option. Also known as option grantor or option seller.
— cftc.gov: Option writer

In simple words: The seller of an option, who takes on the obligation.

Oracle

An oracle is a bridge between the blockchain and the real world. They act as onchain APIs that can be queried for information and used in smart contracts. More on oracles.
— ethereum.org: Oracle

In simple words: A service that feeds real-world data, such as prices, to the blockchain.

Oracle Manipulation

Oracle manipulation is when an oracle smart contract is manipulated by hackers.
— coinmarketcap.com: Oracle Manipulation

In simple words: Hackers feeding false prices to contracts.

Order block

Trader jargon, no official definition

The last opposite-coloured candle before a strong move, treated as a zone where large orders supposedly sat. No evidence base.

In simple words: A candle area that SMC traders think big players used.

Order Book

A market structure, electronic or through other means of communication, whereby bids and offers are matched exclusively based on their price and/or the time that they arrived at the market.
— cftc.gov: Order Book

In simple words: The live list of all buy and sell orders.

orders Read the full entry →

Ostrich effect

The ostrich effect, also known as the ostrich problem, was originally coined by Dan Galai and Orly Sade. The name comes from the common legend that ostriches bury their heads in the sand to avoid danger. This effect is a cognitive bias where people tend to …
— en.wikipedia.org: Ostrich effect

In simple words: Avoiding bad news, like not checking a losing account.

Out-Of-The-Money

A term used to describe an option that has no intrinsic value. For example, a call with a strike price of $400 on gold trading at $390 is out-of-the-money 10 dollars.
— cftc.gov: Out-Of-The-Money

In simple words: The option would be worthless if used now.

Outcome bias

The outcome bias is an error made in evaluating the quality of a decision when the outcome of that decision is already known. Specifically, the outcome effect occurs when the same "behavior produce[s] more ethical condemnation when it happen[s] to produce bad …
— en.wikipedia.org: Outcome bias

In simple words: Judging a decision only by its result.

Over-Collateralization

Over-collateralization (OC) is the provision of collateral that is worth more than enough to cover potential losses in cases of default.
— coinmarketcap.com: Over-Collateralization

In simple words: Putting up more collateral than you borrow.

Over-the-Counter (OTC) Trading

Over-the-counter refers to the process of how securities are traded through a broker-dealer network as opposed to a centralized exchange.
— coinmarketcap.com: Over-the-Counter Trading

In simple words: Trading directly between two parties, not on the public order book.

Overbought

A technical opinion that the market price has risen too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bullish and long have turned bearish.
— cftc.gov: Overbought

In simple words: Risen so far and so fast it may pull back.

analysis Read the full entry →

Overfitting

A rule that only learned the noise in old data.

testing Read the full entry →

Oversold

A technical opinion that the market price has declined too steeply and too fast in relation to underlying fundamental factors; rank and file traders who were bearish and short have turned bullish.
— cftc.gov: Oversold

In simple words: Fallen so far and so fast it may bounce.

analysis Read the full entry →

P2P Trading

Peer-to-peer (P2P) trading involves decentralized transactions where two users swap cryptocurrencies directly with each other.
— coinmarketcap.com: P2P Trading

In simple words: Trading directly with another person.

Panic of 1907

The Panic of 1907, also known as the 1907 Bankers' Panic or Knickerbocker Crisis, was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange suddenly fell almost 50% from its …
— en.wikipedia.org: Panic of 1907

In simple words: A US banking panic that led to the creation of the Fed.

Paper Profit

or Loss The profit or loss that would be realized if open contracts were liquidated as of a certain time or at a certain price.
— cftc.gov: Paper Profit

In simple words: A profit not yet locked in.

Paper Trading

Paper trading or simulated trading is the practice of using a virtual transactional environment to simulate trading without the use of real capital.
— coinmarketcap.com: Paper Trading

In simple words: Practising with fake money.

Paper Wallet

A physical document containing your private key or seed phrase.
— coinmarketcap.com: Paper Wallet

In simple words: Keys printed on paper.

PCE price index

A measure of the prices people living in the US, or those buying on their behalf, pay for goods and services.
— bea.gov: PCE price index

In simple words: The Fed's preferred inflation gauge.

Peer-to-peer network

A network of computers (peers) that are collectively able to perform functionalities without the need for centralized, server-based services.This setup is often used for sharing files (i.e., Bit torrent), information, or digital currencies, allowing for more …
— ethereum.org: Peer-to-peer network

In simple words: Computers talking directly to each other.

Peg

A “peg” is a specified price for the rate of exchange between two assets.
— coinmarketcap.com: Peg

In simple words: A fixed exchange rate target.

Pennant

A small symmetrical triangle that begins wide and converges as the pattern matures.
— chartschool.stockcharts.com: Pennant

In simple words: A short pause shaped like a small triangle.

Permissionless

Permissionless means anyone can join and use a system like Ethereum. It's open for everyone to participate and doesn't require any approval.
— ethereum.org: Permissionless

In simple words: Anyone can join without asking.

Permissionless Market Creation

Permissionless market creation is a system in which anyone can set up a financial market without needing approval.
— coinmarketcap.com: Permissionless Market Creation

In simple words: Anyone can create a new market.

Perpetual futures / funding rate

A futures contract with no expiry. A periodic funding payment between longs and shorts, based on an interest component and a premium index, keeps its price near the index price.
— bybit.com: Perpetual futures / funding rate

In simple words: A futures contract with no expiry; a small fee keeps it near spot.

crypto derivatives Read the full entry →

Phishing

When a scammer pretends to be a trusted institution or person to trick people into revealing sensitive information often through a malware link disguised as legitimate.
— coinmarketcap.com: Phishing

In simple words: Fake messages or sites that steal your login or keys.

Pip

The smallest price unit of a commodity or currency.
— cftc.gov: Pip

In simple words: The smallest standard price step in forex.

forex Read the full entry →

Plaza Accord

The Plaza Accord was a joint agreement signed on September 22, 1985, at the Plaza Hotel in New York City, between France, West Germany, Japan, the United Kingdom, and the United States, to depreciate the U.S. dollar in relation to the French franc, the German …
— en.wikipedia.org: Plaza Accord

In simple words: A 1985 agreement to push the dollar down.

Point-and-Figure

A method of charting that uses prices to form patterns of movement without regard to time. It defines a price trend as a continued movement in one direction until a reversal of a predetermined criterion is met.
— cftc.gov: Point-and-Figure

In simple words: A chart that plots only price changes, not time.

Ponzi Scheme

Named after Charles Ponzi, a man with a remarkable criminal career in the early 20th century, the term has been used to describe pyramid arrangements whereby an enterprise makes payments to investors from the proceeds of a later investment rather than from profits of the underlying business venture, as the investors expected, and gives investors the impression that a legitimate profit-making business or investment opportunity exists, where in fact it is a mere fiction.
— cftc.gov: Ponzi Scheme

In simple words: A scam paying old investors with new investors' money.

fraud Read the full entry →

Portfolio

A collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual.
— coinmarketcap.com: Portfolio

In simple words: Everything you hold together.

Position

An interest in the market, either long or short, in the form of one or more open contracts.
— cftc.gov: Position

In simple words: An open trade you still hold.

positions

Position Limit

See Speculative Position Limit.
— cftc.gov: Position Limit

In simple words: The maximum size one trader may hold.

rules

Position Size

Position size is defined as the number of units of a trading instrument that are bought or sold.
— coinmarketcap.com: Position Size

In simple words: How much you buy or sell in one trade.

Position sizing

Choosing trade size from how much you're willing to lose.

risk Read the full entry →

Position Trader

A commodity trader who either buys or sells contracts and holds them for an extended period of time, as distinguished from a day trader, who will normally initiate and offset a futures position within a single trading session.
— cftc.gov: Position Trader

In simple words: Someone who holds trades for weeks or months.

Post-only (post limit)

Order is either posted to the book or cancelled, ensuring a maker fee.
— support.kraken.com: Post-only

In simple words: An order that refuses to trade instantly.

Bybit: the system automatically cancels the limit order if it detects that it would be executed immediately. On Binance this order type is called GTX. Bybit Help Center: Post-Only order.

PPI

Measures the average change over time in selling prices received by domestic producers for their output.
— bls.gov: PPI

In simple words: Inflation at the factory/wholesale level.

Pre-Mine

When some or all of a coin’s initial supply is generated during or before the public launch.
— coinmarketcap.com: Pre-Mine

In simple words: Coins created before public launch.

Pre-Sale

The sale of a cryptocurrency, ahead of it going public, to specific investors.
— coinmarketcap.com: Pre-Sale

In simple words: Selling tokens early to select buyers.

Prearranged Trading

Trading between brokers in accordance with an expressed or implied agreement or understanding, which is a violation of the Commodity Exchange Act and CFTC regulations.
— cftc.gov: Prearranged Trading

In simple words: Trades agreed in secret beforehand. Illegal.

Prediction Market

Prediction Markets are exchange-traded markets where the future outcomes of events are traded. It indicates the confidence of the crowd in a specific future event.
— coinmarketcap.com: Prediction Market

In simple words: A market betting on future events.

Premium

(1) The payment an option buyer makes to the option writer for granting an option contract; (2) the amount a price would be increased to purchase a better quality commodity; (3) refers to a futures delivery month selling at a higher price than another, as 'July is at a premium over May' Price Banding: A CME Group and ICE-instituted mechanism to ensure a fair and orderly market on an electronic trading platform. This mechanism subjects all incoming orders to price verification and rejects all orders with clearly erroneous prices. Price bands are monitored throughout the day and adjusted if necessary.
— cftc.gov: Premium

In simple words: The price paid for an option.

derivatives Read the full entry →

Premium / discount / equilibrium (SMC sense)

Trader jargon, no official definition

Upper half / lower half / midpoint of a chosen price range. Not related to option premium or bond discount.

In simple words: Whether price is in the expensive or the cheap half of a range.

Price Discovery

The process of determining the price level for a commodity through the interaction of buyers and sellers and based on supply and demand conditions.
— cftc.gov: Price Discovery

In simple words: How buyers and sellers find the price.

markets

Price Impact

The difference between market price and estimated price due to trade size.
— coinmarketcap.com: Price Impact

In simple words: How much your own order moves the price.

Private key

A private key is a secret code that proves you own your digital money and lets you spend it, like a PIN for your account. DO NOT SHARE IT.
— ethereum.org: Private key

In simple words: The secret code that controls your coins. Never share it.

Profit factor

Ratio of gross profit to gross loss; 1 means they are equal.
— metatrader5.com: Profit factor

In simple words: Total winnings divided by total losses.

Program Trading

The purchase (or sale) of a large number of stocks contained in or comprising a portfolio. Originally called program trading when index funds and other institutional investors began to embark on large -scale buying or selling campaigns or 'programs' to invest in a manner that replicates a target …
— cftc.gov: Program Trading

In simple words: Computer-driven trading of many securities at once.

Proof of Reserves (PoR)

Proof of Reserves (PoR) is a method of using cryptographic verification to demonstrate possession of digital assets.
— coinmarketcap.com: Proof of Reserves

In simple words: An exchange shows it actually holds customers' coins.

Proof-of-History (PoH)

Proof of History (PoH) nodes have internal clocks that validate events and time. The incoming events are hashed using a verifiable delay function, also known as VDF.
— coinmarketcap.com: Proof-of-History

In simple words: A clock-like method to order events (Solana).

Proof-of-stake (PoS)

A method by which a cryptocurrency blockchain protocol aims to achieve distributed consensus. PoS asks users to prove ownership of a certain amount of cryptocurrency (their "stake" in the network) in order to be able to participate in the validation of …
— ethereum.org: Proof-of-stake

In simple words: Security by locked-up coins: validators risk their stake.

Proof-of-work (PoW)

A security mechanism for blockchains that requires nodes to expend energy in the form of computation to find a certain value.
— ethereum.org: Proof-of-work

In simple words: Security by computing power: miners compete to solve puzzles.

Prop Shop

A proprietary trading group, especially one where the group's traders trade electronically at a physical facility operated by the group.
— cftc.gov: Prop Shop

In simple words: A firm that trades its own money.

Proto-Danksharding

A new transaction type which accepts "blobs" of data for Ethereum. This "blob" data is temporarily stored on the beacon chain for 4096 epochs (~18.2 days), and can optionally be pruned after to help reduce hardware requirements for node operators.
— ethereum.org: Proto-Danksharding

In simple words: An upgrade making layer-2 data cheaper.

Public key

A public key is a set of characters that lets others send you digital currency securely, like an email address for money.
— ethereum.org: Public key

In simple words: The shareable code your address is made from.

Pump and dump

Inflating a stock's price with false or misleading statements to create a buying frenzy, then selling at the inflated price.
— sec.gov: Pump and dump

In simple words: Hyping a coin or stock, then selling to the buyers.

fraud Read the full entry →

Put option

An option contract that gives the holder the right but not the obligation to sell a specified quantity of a particular commodity, security, or other asset or to enter into a short futures position at a given price (the strike price) prior to or on or prior to a specified expiration date.
— cftc.gov: Put option

In simple words: The right to sell at a set price before a date.

Pyramid Scheme

A pyramid scheme is a scam with a hierarchical top-down structure.
— coinmarketcap.com: Pyramid Scheme

In simple words: A scam paying early members with new members' money.

Pyramiding

The use of profits on existing positions as margin to increase the size of the position, normally in successively smaller increments.
— cftc.gov: Pyramiding

In simple words: Using profits to add to a winning position.

R / 1R

The initial risk taken in a position, as defined by the initial stop loss.
— vantharp.com: R / 1R

In simple words: The amount you lose if your stop is hit.

R-multiple

Result measured in units of risk.

risk Read the full entry →

Rally

An upward movement of prices.
— cftc.gov: Rally

In simple words: A strong price rise.

analysis

Random Walk

An economic theory that market price movements move randomly. This assumes an efficient market. The theory also assumes that new information comes to the market randomly. Together, the two assumptions imply that market prices move randomly as new information is incorporated into market prices. The …
— cftc.gov: Random Walk

In simple words: The idea that price changes are unpredictable.

Re-entrancy attack

An attack that consists of an attacker contract calling a victim contract function in such a way that during execution the victim calls the attacker contract again, recursively. This can result, for example, in the theft of funds by skipping parts of the …
— ethereum.org: Re-entrancy attack

In simple words: A smart-contract hack that calls back in before it finishes.

Real-World Assets (RWAs)

Real-world assets (RWAs) refer to both tangible and intangible assets that exist beyond just digital crypto tokens.
— coinmarketcap.com: Real-World Assets

In simple words: Things like bonds or property turned into tokens.

Rebalancing

Rebalancing is the process of realigning the weightage of a portfolio of assets that involves buying or selling assets periodically to maintain a targeted level of asset allocation and risk.
— coinmarketcap.com: Rebalancing

In simple words: Buying and selling to get back to your target mix.

Rebase

A token designed so that the circulating supply adjusts automatically according to price fluctuations.
— coinmarketcap.com: Rebase

In simple words: Supply changes automatically to steer the price.

Recency bias

Recency bias is a cognitive bias that favors recent events over historic ones. A type of memory bias, recency bias gives "greater importance to the most recent event".
— en.wikipedia.org: Recency bias

In simple words: Giving too much weight to what just happened.

Recovery factor

How much you earned for the pain you took.

Regret (decision theory)

In decision theory, regret aversion describes how the human emotional response of regret can influence decision-making under uncertainty. When individuals make choices without complete information, they often experience regret if they later discover that a …
— en.wikipedia.org: Regret

In simple words: Avoiding choices you might regret.

Rehypothecation

Rehypothecation is the practice where banks, and even the brokers themselves, use assets that have been posted as collateral by their clients for their own purposes.
— coinmarketcap.com: Rehypothecation

In simple words: A broker reuses your collateral.

REKT

A shorthand slang for “wrecked,” describing a bad loss in a trade.
— coinmarketcap.com: REKT

In simple words: Lost a lot of money, often after being liquidated.

Origin: Dictionary.com: slang, phonetic spelling of "wrecked", first recorded 2010–15 (source).

Relative Strength Index (RSI)

A form of technical analysis that serves as a momentum oscillator, measuring the speed and change of price movements.
— coinmarketcap.com: Relative Strength Index

In simple words: A 0–100 gauge of how strong recent gains are compared with losses.

Replay Attack

Replay attacks are network security attacks where the comms between a sender and receiver is intercepted.
— coinmarketcap.com: Replay Attack

In simple words: Repeating a valid transaction on another chain.

Repo

or Repurchase Agreement A transaction in which one party sells a security to another party while agreeing to repurchase it from the counterparty at some date in the future, at an agreed price. Repos allow traders to short-sell securities and allow the owners of securities to earn added income by …
— cftc.gov: Repo

In simple words: A short-term loan backed by securities.

Representativeness heuristic

The representativeness heuristic is used when making judgments about the probability of an event being representational in character and essence of a known prototypical event. It is one of a group of heuristics proposed by psychologists Amos Tversky and …
— en.wikipedia.org: Representativeness heuristic

In simple words: Judging by how much something looks like a familiar type.

Resistance

In technical analysis, a price area where new selling will emerge to dampen a continued rise. See Support.
— cftc.gov: Resistance

In simple words: A price area where selling tends to show up.

analysis Read the full entry →

Restaking

Restaking is a mechanism that allows validators on proof-of-stake (PoS) blockchain networks to redeploy their staked cryptocurrency across other PoS-based chains.
— coinmarketcap.com: Restaking

In simple words: Using already-staked coins to secure other services as well. Extra risk.

Resting Order

A limit order to buy at a price below or to sell at a price above the prevailing market that is being held by a floor broker. Such orders may either be day orders or open orders.
— cftc.gov: Resting Order

In simple words: An order waiting in the book.

orders Read the full entry →

Retail Customer

A customer that does not qualify as an eligible contract participant under Section 1a(18) of the Commodity Exchange Act, 7 USC 1a(18). An individual with total assets that do not exceed $10 million, or $5 million if the individual is entering into an agreement, contract, or transaction to manage risk, would be considered a retail customer.
— cftc.gov: Retail Customer

In simple words: An ordinary individual investor, not a professional.

people rules Read the full entry →

Retracement (pullback)

A reversal within a major price trend.
— cftc.gov: Retracement

In simple words: A short move against the trend before it continues.

Revenge trading

"Placing a trade not because you have a reason to, but because you have just lost and want to recover the money" (FXTM). Related evidence: Coval & Shumway (2005, Journal of Finance) found that CBOT proprietary traders took above-average afternoon risk after morning losses.
— fxtm.com: Revenge trading

In simple words: Trading angrily to win back a loss, usually with too much size.

Reversal

A change of direction in prices.
— cftc.gov: Reversal

In simple words: The trend turns around.

Reversal pattern

Chart patterns that indicate a trend change; split into top and bottom formations.
— chartschool.stockcharts.com: Reversal pattern

In simple words: A shape that suggests the trend is ending.

Reverse Indicator

A person whom you may use as an indicator of how not to place buy or sell orders because they are always wrong at predicting price movements of cryptocurrencies.
— coinmarketcap.com: Reverse Indicator

In simple words: Someone whose calls are so often wrong people do the opposite.

Ring Signature

A cryptographic digital signature that obfuscates the identities of two parties within a transaction.
— coinmarketcap.com: Ring Signature

In simple words: A signature that hides who in a group signed.

Risk-reward ratio (R:R)

The amount of risk you take on in a trade compared with the potential reward (IG). Written as risk:reward (1:2) or reward:risk (2R); check which order is meant.
— ig.com: Risk-reward ratio

In simple words: How much you could win compared with how much you could lose.

ROI

Short for “Return on Investment,” the ratio between the net profit and cost of investing.
— coinmarketcap.com: ROI

In simple words: How much you earned compared with what you put in.

Roll-over

A trading procedure involving the shift of one month of a straddle into another future month while holding the other contract month. The shift can take place in either the long or short straddle month. The term also applies to lifting a near futures position and re-establishing it in a more …
— cftc.gov: Roll-over

In simple words: Moving a position from one contract month to the next.

Rollups

A type of layer 2 scaling solution that batches multiple transactions and submits them to the Ethereum main chain in a single transaction. This allows for reductions in gas costs and increases in transaction throughput. There are Optimistic and Zero-knowledge …
— ethereum.org: Rollups

In simple words: Bundling many transactions off-chain and posting a summary on-chain.

Round Turn

A completed transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase.
— cftc.gov: Round Turn

In simple words: A full trade: in and out.

Rug Pull

A rug pull is a type of scam where developers abandon a project and take their investors' money.
— coinmarketcap.com: Rug Pull

In simple words: The creators run off with the investors' money.

Runner

Trader jargon, no official definition

The part of a position left open after partial profit-taking, usually with a trailing stop.

In simple words: The last piece of a trade you let run in case the move keeps going.

S&P 500 (Standard and Poor's 500)

The Standard and Poor's 500, also known as S&P 500, is a stock market index that represents a list of 500 public companies located in the U.S and their performance in the market.
— coinmarketcap.com: S&P 500

In simple words: An index of 500 large US companies.

Sample size

How many trades a result is based on.

testing Read the full entry →

Satoshi (SATS)

The smallest unit of bitcoin with a value of 0.00000001 BTC.
— coinmarketcap.com: Satoshi

In simple words: The smallest piece of a bitcoin.

Satoshi Nakamoto

The individual or group of individuals that created Bitcoin.
— coinmarketcap.com: Satoshi Nakamoto

In simple words: The unknown creator of Bitcoin.

Scalper

Traditionally, a speculator, often with exchange trading privileges (a local), who buys and sells rapidly, with small profits or losses, holding his positions for only a short time during a trading session. Typically, a scalper will stand ready to buy at a fraction below the last transaction price and to sell at a fraction above, e.g., to buy at the bid and sell at the offer or ask price, with the intent of capturing the spread between the two, thus creating market liquidity. See Day Trader, Position Trader.
— cftc.gov: Scalper

In simple words: A trader taking very small, very quick profits.

people

Scamcoin

Coins that are created as "get rich quick schemes" by their developers are referred to as a scamcoin.
— coinmarketcap.com: Scamcoin

In simple words: A coin made to cheat buyers.

Secondary Market

A secondary market is a place where investors or traders can buy and sell different kinds of assets or securities that they own, with others.
— coinmarketcap.com: Secondary Market

In simple words: Where investors trade with each other after issuance.

Secure Asset Fund for Users (SAFU)

SAFU is the acronym for the "Secure Asset Fund for Users," an insurance fund established by Binance for emergency cases.
— coinmarketcap.com: Secure Asset Fund for Users

In simple words: "Funds are safe": slang, and an exchange emergency fund.

Securities and Exchange Commission (SEC)

The Federal regulatory agency established in 1934 to administer Federal securities laws
— cftc.gov: Securities and Exchange Commission

In simple words: The US stock market regulator.

Security Token

A security token is essentially a digital form of traditional securities.
— coinmarketcap.com: Security Token

In simple words: A token that represents a security.

Seed Funding

Seed funding is a type of funding that provides capital to startups in exchange for equity in the company.
— coinmarketcap.com: Seed Funding

In simple words: The first investment in a startup.

Seed phrase (recovery phrase)

A list of words given to you when you create a digital wallet. It acts like a password that can help you get back into your wallet if you lose access, making sure you don't lose your digital money or tokens.
— ethereum.org: Seed phrase

In simple words: A list of words that restores your wallet. Whoever has it owns your coins.

Segregated Witness (SegWit)

A Bitcoin Improvement Proposal (BIP) that aimed to fix transaction malleability on Bitcoin.
— coinmarketcap.com: Segregated Witness

In simple words: A bitcoin upgrade that separated signature data.

Segregation of Funds

The requirement that FCMs keep customer funds such as margin deposits separate from the firms’ own funds.
— cftc.gov: Segregation of Funds

In simple words: Client money kept separate from the broker's own money.

Self-Custody

Self-custody means holding your own crypto private keys instead of relying on an exchange or other third party.
— coinmarketcap.com: Self-Custody

In simple words: You hold your own keys, with no exchange in between.

Selfish Mining

A situation in which a miner mines a new block but does not broadcast this new block to the other miners.
— coinmarketcap.com: Selfish Mining

In simple words: A miner hides blocks to gain an advantage.

Sell Wall

A situation where a large limit order has been placed to sell when a cryptocurrency reaches a certain value.
— coinmarketcap.com: Sell Wall

In simple words: A large pile of sell orders at one price.

Sequencer

A sequencer is a program responsible for ordering transactions in a blockchain network, particularly within Layer 2 scaling solutions.
— ethereum.org: Sequencer

In simple words: Orders transactions on a rollup.

Settlement Price

The daily price at which the clearing organization clears all trades and settles all accounts between clearing members of each contract month. Settlement prices are used to determine both margin calls and invoice prices for deliveries. The term also refers to a price established by the exchange to even up positions which may not be able to be liquidated in regular trading.
— cftc.gov: Settlement Price

In simple words: The official closing price used to settle the day.

futures

Sharding

Sharding is a scaling approach that enables splitting of blockchain states into partitions containing states and transaction history, so that each shard can be processed in parallel.
— coinmarketcap.com: Sharding

In simple words: Splitting a blockchain into parts for speed.

Shilling

The act of enthusiastically promoting a cryptocurrency or ICO project.
— coinmarketcap.com: Shilling

In simple words: Hyping a coin, often because you own it.

Shitcoin

A coin with no obvious potential value or usage.
— coinmarketcap.com: Shitcoin

In simple words: A coin with no real use or value.

Shooting star

Single-day pattern in an uptrend: opens higher, trades much higher, closes near its open.
— chartschool.stockcharts.com: Shooting star

In simple words: A candle with a long upper stick after a rise.

Short

(1) The selling side of an open futures contract; (2) a trader whose net position in the futures market shows an excess of open sales over open purchases. See Long.
— cftc.gov: Short

In simple words: You sold and profit if the price falls.

positions Read the full entry →

Short Covering

See Cover.
— cftc.gov: Short Covering

In simple words: Buying back to close a short trade.

Short Hedge

See Selling Hedge.
— cftc.gov: Short Hedge

In simple words: Selling futures to protect against falling prices.

Short Selling

Selling a futures contract or other instrument with the idea of delivering on it or offsetting it at a later date.
— cftc.gov: Short Selling

In simple words: Selling something you borrowed, hoping to buy it back cheaper.

positions Read the full entry →

Short Squeeze

A short squeeze is an unusual market condition that causes the price of a coin to rise quickly, encouraging traders (who are betting against the price of the token) to buy it to avoid losses.
— coinmarketcap.com: Short Squeeze

In simple words: Price rises fast, short sellers are forced to buy back, and that pushes the price higher still.

Sidechain

A scaling solution that uses a separate chain with different, often faster, consensus rules. A bridge is needed to connect these sidechains to Mainnet. Rollups also use sidechains, but they operate in collaboration with Mainnet instead. More on sidechains.
— ethereum.org: Sidechain

In simple words: A separate chain linked to a main chain, with its own security.

Silk Road

An online black market that existed on the dark web, now shut down by the FBI.
— coinmarketcap.com: Silk Road

In simple words: A dark-web market shut down by the FBI, linked to early bitcoin use.

SIM-Swap

A type of scam that exploits two-factor authentication measures.
— coinmarketcap.com: SIM-Swap

In simple words: A criminal takes over your phone number to get your codes.

Simplified Payment Verification (SPV)

A lightweight client to verify blockchain transactions.
— coinmarketcap.com: Simplified Payment Verification

In simple words: A light way to verify transactions.

Slasher

A slasher is an entity that scans attestations searching for slashable offenses. Slashings are broadcast to the network, and the next block proposer adds the proof to the block. The block proposer then receives a reward for slashing the malicious validator.
— ethereum.org: Slasher

In simple words: Detects validators breaking the rules.

Slashing

Slashing is a form of penalty on Proof of Stake (PoS) networks implemented to ensure accountability.
— coinmarketcap.com: Slashing

In simple words: A validator loses stake for breaking rules.

Slippage (concept)

The execution price of a market or stop order can deviate from the last price or the stop price, depending on available liquidity.
— investor.gov: Slippage

In simple words: Getting a worse price than you expected.

costs Read the full entry →

Slot

A period of time (12 seconds) in which new blocks can be proposed by a validator in the proof-of-stake system. A slot may be empty. 32 slots make up an epoch. More on proof-of-stake.
— ethereum.org: Slot

In simple words: A time window for one block.

Smart contract

A smart contract is a program that automatically executes agreements on a blockchain, like a self-enforcing digital contract. Introduction to smart contracts.
— ethereum.org: Smart contract

In simple words: A program on the blockchain that runs automatically.

Sniping in Crypto

Crypto sniping refers to a trading strategy where traders aim to capitalize on brief market inefficiencies or newly launched tokens by executing trades at high speed.
— coinmarketcap.com: Sniping in Crypto

In simple words: Buying a new token in the very first seconds.

Social Engineering

Social engineering is the use of deception to manipulate people into performing an action or giving away their secret information.
— coinmarketcap.com: Social Engineering

In simple words: Tricking people into giving access.

Soft Cap

The minimum amount that an initial coin offering (ICO) wants to raise.
— coinmarketcap.com: Soft Cap

In simple words: The minimum amount a token sale wants to raise.

Soft fork

A divergence in a blockchain that occurs when the consensus rules change. Contrary to a hard fork, a soft fork is backwards compatible; upgraded nodes can validate blocks created by non-upgraded nodes as long as they follow the new consensus rules.
— ethereum.org: Soft fork

In simple words: A rule change that old software still accepts.

Soft Peg

In finance, a soft peg is a method of keeping the value of a currency within a certain range against a reserve currency by using an exchange rate regime.
— coinmarketcap.com: Soft Peg

In simple words: A currency kept within a band.

South Sea Company

The South Sea Company was a British joint-stock company founded in January 1711, created as a public-private partnership to consolidate and reduce the cost of the national debt. To generate income, in 1713 the company was granted a monopoly to supply enslaved …
— en.wikipedia.org: South Sea Company

In simple words: The British company behind the 1720 South Sea Bubble.

SPAC

A special purpose acquisition company (SPAC) is formed by investors in order to publicly list an organization without going through the troubles that come with the traditional IPO process.
— coinmarketcap.com: SPAC

In simple words: A shell company that goes public to buy a private company.

Spear Phishing

Spear phishing is a personalized, targeted cyber attack that uses your interest to trick you into clicking a malicious link in an email.
— coinmarketcap.com: Spear Phishing

In simple words: A targeted scam message aimed at you personally.

Speculative Bubble

A rapid run-up in prices caused by excessive buying that is unrelated to any of the basic, underlying factors affecting the supply or demand for a commodity or other asset. Speculative bubbles are usually associated with a 'bandwagon' effect in which speculators rush to buy the commodity (in the …
— cftc.gov: Speculative Bubble

In simple words: Prices driven far above value by speculation.

Speculator

In commodity futures, a trader who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements.
— cftc.gov: Speculator

In simple words: Someone trading to profit from price moves.

people

Spoofing

See Disruptive Trading Practice.
— cftc.gov: Spoofing

In simple words: Placing fake orders you plan to cancel, to mislead others. Illegal.

fraud

Spot

Market of immediate delivery of and payment for the product.
— cftc.gov: Spot

In simple words: Buying or selling for immediate delivery at today's price.

markets

Spot Month

The futures contract that matures and becomes deliverable during the present month. Also called Current Delivery Month.
— cftc.gov: Spot Month

In simple words: The futures month closest to expiry.

Squeeze

A market situation in which the lack of supplies tends to force shorts to cover their positions by offset at higher prices. Also see Congestion, Corner.
— cftc.gov: Squeeze

In simple words: Shorts are forced to buy because supply is tight.

Stablecoin

A stablecoin is a type of cryptocurrency designed to have a stable value, often pegged to a currency or commodity (like US dollar), to minimize price volatility. More on stablecoins.
— ethereum.org: Stablecoin

In simple words: A coin designed to stay at a fixed value, usually 1 US dollar.

Stacking Sats

"Stacking sats" refers to the practice of accumulating small amounts of Bitcoin, typically expressed in "satoshis," the smallest unit of a Bitcoin.
— coinmarketcap.com: Stacking Sats

In simple words: Regularly buying small amounts of bitcoin.

Stagflation

Stagflation is a period during which an economy sees simultaneous stagnant growth and rising inflation (in other words, growth and inflation move in opposite directions).
— coinmarketcap.com: Stagflation

In simple words: High inflation and weak growth at the same time.

Staking

Depositing a quantity of ether (your stake) to become a validator and secure the network. A validator checks transactions and proposes blocks under a proof-of-stake consensus model. Staking gives you an economic incentive to act in the best interests of the …
— ethereum.org: Staking

In simple words: Locking up coins to help secure the network and earn rewards.

Staking pool

The combined ETH of more than one Ethereum staker, used to reach the 32 ETH required to activate a set of validator keys. A node operator uses these keys to participate in consensus and the block rewards are split amongst contributing stakers. Staking pools …
— ethereum.org: Staking pool

In simple words: Combining coins with others to stake together.

Status quo bias

A status quo bias or default bias is a cognitive bias which results from a preference for the maintenance of one's existing state of affairs. The current baseline is taken as a reference point, and any change from that baseline is perceived as a loss or gain. …
— en.wikipedia.org: Status quo bias

In simple words: Preferring to leave things as they are.

Stealth address

A one-time address generated for each payment, so only the recipient can find and spend it, and outside observers can't link payments to the recipient's public address. The standard is ERC-5564.
— ethereum.org: Stealth address

In simple words: A one-time address for private receiving.

Stochastic oscillator

A momentum indicator showing the speed and momentum of price movement (George C. Lane).
— chartschool.stockcharts.com: Stochastic oscillator

In simple words: Shows where price closes within its recent range.

Stock-to-Flow Ratio

The stock-to-flow ratio is a metric used to measure the scarcity of a commodity, particularly precious metals and cryptocurrencies.
— coinmarketcap.com: Stock-to-Flow Ratio

In simple words: Existing supply compared with new supply each year.

Caveat: the S2F bitcoin price model is disputed. Morillon & Chacon (2022), "Dissecting the stock to flow model for Bitcoin", Studies in Economics and Finance, doi:10.1108/SEF-10-2021-0409 (source), and a 2024 J. Risk Financial Management study (doi:10.3390/jrfm17100443) found weak or out-of-sample-failing predictive power.

Stop Limit Order

A stop limit order is an order that goes into force as soon as there is a trade at the specified price. The order, however, can only be filled at the stop limit price or better. Compare to Stop Order.
— cftc.gov: Stop Limit Order

In simple words: A stop that becomes a limit order, so no worse price.

orders Read the full entry →

Stop Loss Order

See Stop Order.
— cftc.gov: Stop Loss Order

In simple words: A stop order used to limit a loss.

orders risk Read the full entry →

Stop Order

This is an order that becomes a market order when a particular price level is reached. A sell stop is placed below the market, a buy stop is placed above the market. Sometimes referred to as stop loss order. Compare to market-if-touched order.
— cftc.gov: Stop Order

In simple words: An order that activates when a price level is hit.

orders Read the full entry →

Stop-Close-Only Order

A stop order that can be executed, if possible, only during the closing period of the market. See also Market-on-Close Order.
— cftc.gov: Stop-Close-Only Order

In simple words: A stop that can only trigger near the close.

orders

Store of Value

A store of value is an asset, commodity or currency that can be saved, retrieved as well as exchanged in the future without it losing any value.
— coinmarketcap.com: Store of Value

In simple words: Something that keeps its value over time.

Straddle

(1) See Spread; (2) an option position consisting of the purchase of put and call options having the same expiration date and strike price.
— cftc.gov: Straddle

In simple words: Buying a call and a put at the same strike: a bet on a big move.

Strangle

An option position consisting of the purchase of put and call options having the same expiration date, but different strike prices.
— cftc.gov: Strangle

In simple words: Like a straddle but with different strikes.

Strike price

(Exercise Price) The price, specified in the option contract, at which the underlying futures contract, security, or commodity will move from seller to buyer.
— cftc.gov: Strike price

In simple words: The price at which an option lets you buy or sell.

Sunk cost

In economics and business decision-making, a sunk cost is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken. In other words, a sunk …
— en.wikipedia.org: Sunk cost

In simple words: Money already spent that you cannot get back. It should not drive the next decision.

Supercycle

In economics, a "supercycle" describes an extended period characterized by the outsized growth of a particular asset or sector.
— coinmarketcap.com: Supercycle

In simple words: A very long boom in a market or sector.

Supermajority

Supermajority is the term given for an amount exceeding 2/3 (66%) of the total staked ether securing Ethereum. A supermajority vote is required for blocks to be finalized on the Beacon Chain.
— ethereum.org: Supermajority

In simple words: Two-thirds of staked ETH agreeing.

Supply and Demand

Supply and demand are the levels in an economy that determine the market's willingness to buy or sell assets or services, respectively.
— coinmarketcap.com: Supply and Demand

In simple words: Price rises when more people want to buy than sell, and the other way round.

Support

In technical analysis, a price area where new buying is likely to come in and stem any decline. See Resistance.
— cftc.gov: Support

In simple words: A price area where buying tends to show up.

analysis Read the full entry →

Survivorship bias

Survivorship bias or survivor bias is a statistical error which results from concentrating on entities that passed a selection process over those that did not. This can lead to incorrect conclusions because of incomplete data.
— en.wikipedia.org: Survivorship bias

In simple words: Only seeing the winners who survived, not the many who failed.

Swap

The statutory definition of “swap” is detailed and comprehensive, though certain agreements, contracts, and transactions are excluded from the definition. It includes, for example, interest rate swaps, commodity swaps, currency swaps, equity swaps and credit default swaps. Congress directed both the Commission and the Securities and Exchange Commission to further define the term “swap” (and security-based swap) jointly. The Commissions in 2012 adopted rules and interpretations to clarify that a few types of transactions in particular are swaps. These include foreign currency options, commodity options, non-deliverable forwards in foreign exchange, cross-currency swaps, forward rate agreements, contracts for differences, options to enter into swaps and forward swaps. See 7 U.S.C. §1a(47) and 17 C.F.R. 1.3.
— cftc.gov: Swap

In simple words: Swapping one stream of payments for another.

derivatives

Swaption

An option to enter into a swap - i.e., the right, but not the obligation, to enter into a specified type of swap at a specified future date.
— cftc.gov: Swaption

In simple words: An option to enter a swap.

Swing Failure Pattern (SFP)

A swing failure pattern (SFP) is a trend reversal indicator that can be used to discover a weakness in the current trend and identify early reversal signs.
— coinmarketcap.com: Swing Failure Pattern

In simple words: Price pokes past an old high or low, fails, and closes back inside.

Swing Trading

Swing trading is a market trading technique that aims to profit from short to medium-term price changes in stocks, commodities, and/or currencies over a period of days or weeks.
— coinmarketcap.com: Swing Trading

In simple words: Holding trades for days or weeks to catch bigger moves.

Sybil attack

Sybil attacks refer to individual humans tricking a system into thinking they are multiple people to increase their influence.
— ethereum.org: Sybil attack

In simple words: One person faking many identities.

Symmetrical triangle

Converging trend lines; marks a consolidation period before continuing after the breakout.
— chartschool.stockcharts.com: Symmetrical triangle

In simple words: Price squeezes into a point before breaking out.

Synthetic Asset

Synthetic assets, sometimes referred to as synths, are a combination of cryptocurrencies and traditional derivative assets. In other words, synths are tokenized derivatives.
— coinmarketcap.com: Synthetic Asset

In simple words: A token that tracks another asset's price.

Systematic Risk

Market risk due to factors that cannot be eliminated by diversification.
— cftc.gov: Systematic Risk

In simple words: Market-wide risk you cannot diversify away.

Systemic Risk

The risk that a default by one market participant will have repercussions on other participants due to the interlocking nature of financial markets. For example, Customer A’s default in X market may affect Intermediary B’s ability to fulfill its obligations in Markets X, Y, and Z.
— cftc.gov: Systemic Risk

In simple words: The risk that one failure brings down the whole system.

Take Profit

A take-profit order is an act of selling cryptocurrency to secure profits. It is usually executed at a predetermined price when the trade is in profit.
— coinmarketcap.com: Take Profit

In simple words: An order that closes your trade once a profit target is hit.

Taker

You trade instantly against someone's waiting order.

Taproot

Taproot is an instantiation of a soft fork for Bitcoin, intended to both improve privacy and improve other aspects tied to more complex transactions.
— coinmarketcap.com: Taproot

In simple words: A 2021 bitcoin upgrade for privacy and efficiency.

Technical Analysis

An approach to forecasting commodity prices that examines patterns of price change, rates of change, and changes in volume of trading and open interest, without regard to underlying fundamental market factors. Technical analysis can work consistently only if the theory that price movements are a random walk is incorrect. See Fundamental Analysis.
— cftc.gov: Technical Analysis

In simple words: Studying charts and price history.

analysis Read the full entry →

Testnet

Short for "test network," a network used to simulate the behavior of the main Ethereum network.
— ethereum.org: Testnet

In simple words: A practice network with worthless coins.

The Barbell Strategy

A method in which investors put their money in two extremes of high-risk and no-risk assets while ignoring the middle-risk assets.
— coinmarketcap.com: The Barbell Strategy

In simple words: Mixing very safe and very risky assets, skipping the middle.

The Cantillon Effect

Developed by Richard Cantillon, The Cantillon Effect is a change in relative prices resulting from a change in the money supply.
— coinmarketcap.com: The Cantillon Effect

In simple words: Whoever gets new money first benefits most.

The DAO

The DAO is the first decentralized autonomous organization, which was created by a group of developers in April 2016.
— coinmarketcap.com: The DAO

In simple words: An early Ethereum fund, hacked in 2016, which led to a chain split.

Tick

Refers to a minimum change in price up or down. An up-tick means that the last trade was at a higher price than the one preceding it. A down-tick means that the last price was lower than the one preceding it. See Minimum Price Fluctuation.
— cftc.gov: Tick

In simple words: The smallest possible price step.

prices

Time Decay

The tendency of an option to decline in value as the expiration date approaches, especially if the price of the underlying instrument is exhibiting low volatility. See Time Value.
— cftc.gov: Time Decay

In simple words: Options lose value as expiry gets closer.

Time Value

That portion of an option's premium that exceeds the intrinsic value. The time value of an option reflects the probability that the option will move into-the-money. Therefore, the longer the time remaining until expiration of the option, the greater its time value. Also called Extrinsic Value.
— cftc.gov: Time Value

In simple words: The extra option value for the time left.

Time-weighted Average Price (TWAP)

The time-weighted average price (TWAP) is a trading indicator, which shows the average price of an asset as it rises and falls during a given or specific time period.
— coinmarketcap.com: Time-weighted Average Price

In simple words: The average price over a period; also a way to split big orders over time.

Timeframe

How much time each chart bar covers.

charts Read the full entry →

Timelock/Locktime

A condition for a transaction to only be processed at a certain time or block on the blockchain.
— coinmarketcap.com: Timelock/Locktime

In simple words: Funds that unlock only after a time.

Token

A tradable virtual good defined in smart contracts on the Ethereum blockchain.
— ethereum.org: Token

In simple words: A digital asset created on top of a blockchain.

Token Generation Event (TGE)

The time at which a token is issued.
— coinmarketcap.com: Token Generation Event

In simple words: The moment a new token is created and first handed out.

Token Lockup

Token lockup refers to a time period during which cryptocurrency tokens cannot be exchanged or traded.
— coinmarketcap.com: Token Lockup

In simple words: Tokens that cannot be sold for a set time.

Token Sale

A token sale refers to the initial offering of a cryptocurrency token to a private pool of investors before it officially goes on the market.
— coinmarketcap.com: Token Sale

In simple words: Selling a new token to raise money.

Tokenization

The process by which real-world assets are turned into something of digital value called a token, often subsequently able to offer ownership of parts of this asset to different owners.
— coinmarketcap.com: Tokenization

In simple words: Turning a real asset into a token.

Tokenized Securities

Tokenized securities are when the ownership of a security is materialized through the issuance of a token.
— coinmarketcap.com: Tokenized Securities

In simple words: Stocks or bonds represented as tokens.

Tokenized Stocks

Tokenized Stocks are the digital assets that are traded on exchanges using blockchain technology.
— coinmarketcap.com: Tokenized Stocks

In simple words: Shares represented as tokens on a blockchain.

Tokenomics

Tokenomics is the science of token economy which consists of a set of rules that governs a cryptocurrency's launch and supply.
— coinmarketcap.com: Tokenomics

In simple words: The rules for how a coin is created, handed out and used.

Total Exchange Volume

Total exchange volume is a measure of the total value that has been traded on an exchange(s).
— coinmarketcap.com: Total Exchange Volume

In simple words: Everything traded on an exchange.

Total Supply

The total amount of coins in existence right now, minus any coins that have been verifiably burned. *see Circulating Supply and Max Supply.
— coinmarketcap.com: Total Supply

In simple words: All coins that exist now, minus burned ones.

Total Value Locked (TVL)

Тotal value locked represents the number of assets that are currently being staked in a specific protocol.
— coinmarketcap.com: Total Value Locked

In simple words: How much money is deposited in a DeFi app.

Touting

Promoting an investment without saying you were paid.

fraud Read the full entry →

TradFi

TradFi, short for Traditional Finance, refers to the conventional financial system and institutions that have been the backbone of the global economy for centuries.
— coinmarketcap.com: TradFi

In simple words: Traditional finance: banks, stock exchanges.

Trading Ahead

See Front Running.
— cftc.gov: Trading Ahead

In simple words: A broker trading before a client's order.

Trading Bot

A crypto trading bot is essentially a program that is designed to automate cryptocurrency asset trading on the behalf of the trader.
— coinmarketcap.com: Trading Bot

In simple words: Software that trades automatically.

Trading Volume

Тrading volume refers to the total number of shares (or tokens/coins) that have been exchanged between buyers and sellers of a given asset during trading hours of a certain day.
— coinmarketcap.com: Trading Volume

In simple words: How much was traded.

TradingView

TradingView is an online web-based platform that provides investors and traders with a user-friendly interface to analyze financial markets using charts and technical indicators.
— coinmarketcap.com: TradingView

In simple words: A popular charting website.

Trailing stop

A stop order whose stop price is set at a fixed amount or percentage away from the market price and moves as the price moves favourably. See 02 for the SEC bulletin.
— investor.gov: Trailing stop

In simple words: Moving your stop along as price moves your way.

orders Read the full entry →

Transaction

Data committed to the Ethereum Blockchain signed by an originating account, targeting a specific address. The transaction contains metadata such as the gas limit for that transaction. More on transactions.
— ethereum.org: Transaction

In simple words: An action sent to the blockchain.

Transaction fee

A fee you need to pay whenever you use the Ethereum network. Examples include sending funds from your wallet or a dapp interaction, like swapping tokens or buying a collectable. You can think of this like a service charge. This fee will change based on how …
— ethereum.org: Transaction fee

In simple words: What you pay the network to process your transaction.

Treasury Bills (T-Bills)

Treasury bills (T-Bills) are short-term U.S. government debt obligations.
— coinmarketcap.com: Treasury Bills

In simple words: Short-term US government loans.

Treasury Bond (T-Bond)

The treasury bond is a debt security issued by the United States government that is backed by the "full faith and credit" of the U.S. Treasury Department.
— coinmarketcap.com: Treasury Bond

In simple words: A long-term loan to the US government.

Trend

The general direction, either upward or downward, in which prices have been moving.
— cftc.gov: Trend

In simple words: The general direction of price.

analysis Read the full entry →

Trendline

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z _
— cftc.gov: Trendline

In simple words: A line drawn along highs or lows showing the trend.

Trustlessness

The ability of a network to mediate transactions without any of the involved parties needing to trust a third party.
— ethereum.org: Trustlessness

In simple words: You do not need to trust anyone; the code checks it.

Turing complete

A concept named after English mathematician and computer scientist Alan Turing - a system of data-manipulation rules (such as a computer's instruction set, a programming language, or a cellular automaton) is said to be "Turing complete" or "computationally …
— ethereum.org: Turing complete

In simple words: Able to run any program.

Two-Factor Authentication (2FA)

Two-factor authentication (2FA) is method of access that requires two different forms of authentication.
— coinmarketcap.com: Two-Factor Authentication

In simple words: A second code besides your password.

Typosquatting

Typosquatting is a deceptive practice used by scammers to trick people into entering a counterfeit website and compromising their private information.
— coinmarketcap.com: Typosquatting

In simple words: Fake websites with misspelled names.

Unit of Account

A unit of account is a standardized unit of measurement used in accounting to record and track financial transactions.
— coinmarketcap.com: Unit of Account

In simple words: Something used to measure and compare prices.

Unrealized Profit & Loss

Unrealized profit and loss occur when you have a position open in a security that has appreciated or depreciated in value.
— coinmarketcap.com: Unrealized Profit & Loss

In simple words: Profit or loss on paper while the trade is still open.

Unspent Transaction Output (UTXO)

A transaction that is left unspent after being completed, similar to leftover change after making a purchase.
— coinmarketcap.com: Unspent Transaction Output

In simple words: Bitcoin's "change" model for balances.

US Office of Foreign Assets Control (OFAC)

The US Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the US Treasury Department.
— coinmarketcap.com: US Office of Foreign Assets Control

In simple words: The US office that enforces sanctions.

Utility Token

Tokens that are designed specifically to be able to help people use something.
— coinmarketcap.com: Utility Token

In simple words: A token used to access a service.

Validator

A node in a proof-of-stake system responsible for storing data, processing transactions, and adding new blocks to the blockchain. To activate validator software, you need to be able to stake 32 ETH. More on staking in Ethereum.
— ethereum.org: Validator

In simple words: A participant who stakes coins to check and add blocks.

Validity proof

A security model for certain layer 2 solutions where, to increase speed, transactions are rolled up into batches and submitted to Ethereum in a single transaction. The transaction computation is done offchain and then supplied to the main chain with a proof …
— ethereum.org: Validity proof

In simple words: Cryptographic proof that a rollup is correct.

Vanity Address

A cryptocurrency public address with custom letters and numbers, usually picked by its owner.
— coinmarketcap.com: Vanity Address

In simple words: An address with custom letters.

Vaporware

A cryptocurrency project that is never actually developed.
— coinmarketcap.com: Vaporware

In simple words: A product that is announced but never delivered.

Variation Margin

Payment made on a daily or intraday basis by a clearing member to the clearing organization based on adverse price movement in positions carried by the clearing member, calculated separately for customer and proprietary positions.
— cftc.gov: Variation Margin

In simple words: Daily money moved in or out to cover gains and losses.

futures

Vega

Coefficient measuring the sensitivity of an option value to a change in volatility.
— cftc.gov: Vega

In simple words: How much the option price reacts to volatility changes.

Venture Capital

A form of private equity provided to fund small, early-stage firms considered to have high growth potential.
— coinmarketcap.com: Venture Capital

In simple words: Money invested in young startups.

Vertical Spread

Any of several types of option spread involving the simultaneous purchase and sale of options of the same class and expiration date but different strike prices, including bull vertical spreads, bear vertical spreads, back spreads, and front spreads. See Horizontal Spread and Diagonal Spread.
— cftc.gov: Vertical Spread

In simple words: Buying one option and selling another at a different strike.

Vesting Period

The act of restricting the sale of a token for a particular period of time.
— coinmarketcap.com: Vesting Period

In simple words: Tokens unlock gradually instead of all at once.

Volatility

A statistical measurement (the annualized standard deviation of returns) of the rate of price change of a futures contract, security, or other instrument underlying an option. See Historical Volatility, Implied Volatility.
— cftc.gov: Volatility

In simple words: How much and how fast the price swings.

risk Read the full entry →

Volcker Rule

Named for former United States Federal Reserve Chairman Paul Volcker, the Volcker Rule is a section of the Dodd-Frank Act that generally prohibits banking entities from engaging in proprietary trading or certain other high risk investments or strategies.
— cftc.gov: Volcker Rule

In simple words: A rule limiting US banks' own speculative trading.

Volume

The number of contracts traded during a specified period of time. It is most commonly quoted as the number of contracts traded, but for some physical commodities may be quoted or as the total of physical units, such as bales, or bushels, pounds or dozens or barrels.
— cftc.gov: Volume

In simple words: How much was traded in a period.

data Read the full entry →

WAGMI

WAGMI stands for "We're All Gonna Make It." It's a phrase about positivity, optimism, and a collective belief in success.
— coinmarketcap.com: WAGMI

In simple words: "We're all gonna make it": crypto optimism.

Wall Street crash of 1929

The Wall Street crash of 1929, also known as the Great Crash, was a major stock market crash in the United States which began in October 1929 with a sharp decline in prices on the New York Stock Exchange (NYSE). It triggered a rapid erosion of confidence in …
— en.wikipedia.org: Wall Street crash of 1929

In simple words: The crash that started the Great Depression.

Wallet

A wallet is a digital tool to store, send, and receive digital currency, like a virtual purse for your online money. More on Ethereum wallets.
— ethereum.org: Wallet

In simple words: An app or device that holds your keys and lets you send crypto.

Wallstreetbets (WSB)

Wallstreetbets, otherwise known as /r/wallstreetbets or WSB, is a subreddit for participants to discuss stock and options trading.
— coinmarketcap.com: Wallstreetbets

In simple words: A Reddit forum famous for risky stock bets.

Wash sales

Fake trades with no real change in ownership.

Wash Trading

Entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk or changing the trader's market position. The Commodity Exchange Act prohibits wash trading. Also called Round Trip Trading, Wash Sales.
— cftc.gov: Wash Trading

In simple words: Trading with yourself to fake activity. Illegal.

fraud

Watchlist

A watchlist is a feature of the website where users can create their own lists of cryptocurrencies to follow.
— coinmarketcap.com: Watchlist

In simple words: Your list of coins to follow.

Weak Hands

An investor prone to panic selling at the first sign of a price decline.
— coinmarketcap.com: Weak Hands

In simple words: Someone who panic-sells at the first drop.

Web3

Web3 is the new internet with blockchain, where users control their data and transactions, not companies. No need to share any personal information. More on web3.
— ethereum.org: Web3

In simple words: The idea of an internet where users own their data and assets through blockchains.

Wedge (rising)

A bearish pattern that begins wide at the bottom and contracts as prices move higher and the range narrows.
— chartschool.stockcharts.com: Wedge

In simple words: Price climbs in a narrowing funnel; often weakens.

Wei

The smallest denomination of ether. 1018 wei = 1 ether.
— ethereum.org: Wei

In simple words: The smallest unit of ETH.

Whale

Individuals or entities that hold large amounts of cryptocurrency and may influence its price and liquidity. There is no exact threshold; holding at least 1,000 BTC is "often considered" a Bitcoin whale.
— coinbase.com: Whale

In simple words: Someone holding so much crypto that their trades can move the price.

When Lambo

A phrase referring to when cryptocurrency holders will become rich enough to afford the purchase of a Lamborghini.
— coinmarketcap.com: When Lambo

In simple words: A joke about getting rich enough to buy a Lamborghini.

When Moon

A phrase used to ask when the price of cryptocurrencies will explode.
— coinmarketcap.com: When Moon

In simple words: Joking question: when will the price explode?

White Swan Event

A white swan is an easily predictable event that is anticipated based on current information and forecasting.
— coinmarketcap.com: White Swan Event

In simple words: A big event that was predictable.

Whitelist

A list of interested participants in an initial coin offering, who registered their intent to take part or purchase in a sale.
— coinmarketcap.com: Whitelist

In simple words: A pre-approved list of buyers or addresses.

Whitepaper

A document released by a crypto project that gives investors technical information about its concept, and a roadmap for how it plans to grow and succeed.
— coinmarketcap.com: Whitepaper

In simple words: The document explaining a crypto project.

Wick / shadow

The thin stick on a candle showing the extremes.

Win rate

MetaTrader 5 testing report: "Profit Trades (% of total)", i.e. the number of profitable trades and their share of all trades.
— metatrader5.com: Win rate

In simple words: The share of your trades that make money. On its own it says nothing about profit.

testing Read the full entry →

Wrapped token

A blockchain-based token that represents another cryptocurrency or asset on a different network. For example, Wrapped Ether (WETH) represents ether (ETH) in a format that complies with Ethereum's ERC-20 token standard. The original asset is securely locked by …
— ethereum.org: Wrapped token

In simple words: A copy of a coin that works on another chain or standard.

Yield Curve

The yield curve is a line that plots the relationship between yields and maturities of fixed income securities.
— coinmarketcap.com: Yield Curve

In simple words: Interest rates for short and long loans plotted together.

Yield Farming

Yield farming involves earning interest by investing crypto in decentralized finance markets.
— coinmarketcap.com: Yield Farming

In simple words: Moving crypto around DeFi to earn rewards. High risk.

YTD

Stands for Year to Date.
— coinmarketcap.com: YTD

In simple words: From 1 January until today.

Zero address

An Ethereum address, composed entirely of zeros, that is frequently used as an address to remove tokens from owned circulation. A distinction is drawn between tokens formally removed from a smart contract's index via the burn() method and those sent to this …
— ethereum.org: Zero address

In simple words: An address nobody controls; tokens sent there are gone.

Zero Confirmation Transaction

Alternative phrasing for an unconfirmed transaction.
— coinmarketcap.com: Zero Confirmation Transaction

In simple words: A transaction not yet in a block.

Zero-knowledge proof

A zero-knowledge proof is a cryptographic method that allows an individual to prove that a statement is true without conveying any additional information. More on zero-knowledge rollups.
— ethereum.org: Zero-knowledge proof

In simple words: Proving something is true without revealing details.

Zero-knowledge rollup

A rollup of transactions that use validity proofs to offer increased layer 2 transaction throughput while using the security provided by Mainnet (layer 1). Although they can't handle complex transaction types, like optimistic rollups, they don't have latency …
— ethereum.org: Zero-knowledge rollup

In simple words: A rollup secured by zero-knowledge proofs.

Zk-SNARKs

A proof that allows one party to prove it owns certain information without revealing it.
— coinmarketcap.com: Zk-SNARKs

In simple words: A compact zero-knowledge proof.