Cryptocurrency, Forex and Stock Trading Terms You Must Know About – Technical Analysis

Trading terms can be mind-boggling to non-traders or people that just want to start trading. This article is dedicated to explaining what those terms mean.

 

Trading Terminology:

  • Altcoin – Alternative Coin. Bitcoin is a coin and other cryptocurrencies are Altcoins.
  • FIAT – Money issued by governs (USD, EUR, GBP).
  • Leverage Trading – Trading with borrowed assets, resulting in a higher profit. It’s very risky because you can lose your money. For example, one has $100 and wants to trade with 100% leverage($200 in total). If the asset goes down by 50%, he will lose his $100. If it wasn’t a leveraged trade, he would still have $50 worth of assets left. In conclusion, the higher the leverage, the riskier it gets.
  • Margin Trading – Asset borrowing account on an exchange. One is allowed to trade with more value than he can buy. It works like a debt. If one has $ 100, he will be able to trade with $1000 worth of assets as an example. It depends on the leverage amount(the higher the leverage, the higher the risk).
  • Market Order(buy and sell) – Instant purchase of assets at the current market price.
  • Limit Order(buy and sell) – Instant sell of assets at the chosen price.
  • Stop Limits – An order will be executed if a certain price is met.
  • HODL – It means not to sell an asset.
  • Sell Wall – Is an Indicator of the exchanges that shows whether the buyers or sellers are currently in control.
  • ROI – Return of Investment.
  • Trend – A direction in which a market is going.
  • Trend reversal – A shift in the market direction(sentiment).
  • FUD – Fear, Uncertainty and Doubt. The feeling of the market, people selling. It can be due to bad news.
  • FOMO – Fear Of Missing Out.
  • ATH – All-Time High. It means the highest price an asset has ever reached(usually due to the bull runs).
  • ATL – All-Time Low. It means the opposite of ATH, the lowest price an asset has ever reached(usually due to the bear runs, or when an asset is new on the market).
  • The Bottom – Is the lowest price reached after…

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