This is the simultaneous purchase and sale of the same security at different prices in two different markets with a profit without risk. Absolutely efficient markets do not leave room for arbitrage operations. Great value in arbitration operations has the account of operational costs.
ASIC (Application-Specific Integrated Circuit)
This is integral scheme of special purpose or asik, - the processor for working with hashes, used in mining cryptocurrency.
A common name for all cryptocurrencies offered as an alternative to bitcoin. Among them - Litecoin, Namecoin, Novacoin, etc.
This is a cryptocurrency transaction that can be executed instantly without the need for third-party services to facilitate exchange. This is another stage in the development of decentralized exchange, an attempt to make trade safer, more efficient and.
A distributed register consisting of a chain of financial transaction blocks in which each subsequent block is cryptographically linked to the previous one. Includes peer-to-peer (P2P) networks, distributed data storage and cryptography.
This is an equity security that secures the right of its holder to receive bonds from the issuer within the time period of its nominal value or other property equivalent stipulated therein.
A bond may also provide for the holder's right to receive a fixed percentage of the bond's nominal value or other property rights.
The yield on the bond is the amount of all interest paid (coupons) and / or the discount amount when it is purchased.
By maturity, bonds are divided into:
- Short-term (Bills) - maturity from 1 year to 5 years;
- Medium-term (Notes) - from 6 to 12 years;
- Long-term (Bonds) - over 12 years.
Bounty can be interpreted as competing or hunting to promote crypto new coins to be born, promoting here is a form of like share in social media and so on, In return we will be paid to use the coin later after launching.
A broker in the investment market is an intermediary who performs transactions at the expense and on behalf of clients. For its services, the broker receives a fee in the form of a commission. As a rule, the commission is calculated as a percentage of the volume of the transaction.
"BULLS" AND "BEARS"
Commonly accepted in the exchange circles are the names of market participants who play to raise or lower the exchange rates or securities.
"Bulls" -are traders of securities, trying to earn on the growth of the value of assets. The name is based on the idea that the bull, attacking the enemy, raises it with its horns up.
"Bears" - are bidders who earn money on the fall of the market. In this case, it is believed that when attacking an enemy, the bear, on the contrary, presses it to the ground.
The conventional value of the crypto currency is obtained by multiplying the number of tokens by the average price of the token on the exchange. A comparatively useless indicator of the strength of the crypto currency, roughly as GDP for the state economy.
This is the completion of mutual settlements on the transaction, after which the transaction becomes closed and is no longer affected by the change in quotations. Closing of a position can be carried out by making a counter transaction of the same volume, by stop-loss, take-profit or forced, if the account lacks collateral. Proper closure of a position is the key to successful trading, so it must be planned before the position is open, instead of trading "according to the situation".
Its web services that sell capacity for the cryptocurrency. The equipment itself is located on the seller's site and is serviced by its forces. The buyer pays the ordered processing power and receives the revenue from the mining.
CONFIRMATION OF TRANSACTION
This is the process necessary to prevent the repetitive sending of cryptocurrency.
This is a return price movement, which always follows after the trend momentum. After the end of the correction, the trend is always resumed. The depth of correction can be measured using Fibonacci levels - it is measured in percentages and can be up to 50% of the impulse wave, and in some cases even more. The reason for the correction is the overbought or oversold currency pair at the moment. Correction is ascending (during a downtrend), a downward and lateral.
This is a statistical measure of the relationship between the value of two securities (or other assets).
It is measured in the form of a "Coefficient of Correlation", the values of which are located between -1 and +1 and interpreted as follows:
- if the correlation coefficient is +1, then this means that the value of both securities moves 100% of the time in the same direction;
- if it is equal to -1, then the value of both securities moves in opposite directions 100% of the time;
- if the correlation coefficient is zero, then the relationship between the value of both securities is entirely random.
Distributed and decentralized system of secure exchange and transfer of digital banknotes, based on cryptography.
This is the price of one currency, expressed in another one. As a rule, other currency, through which currency quotes are exposed, are US dollars.
It’s investing funds in different assets in order to reduce risks. At the same time, ideally, risk reduction should have minimal impact on the portfolio return.
Part of the profit of the joint-stock company, which is distributed between the owners of ordinary and preferred shares. Dividend payments are not guaranteed. They can only be realized from the net profit of the company. That is, after payment of all other mandatory payments, including taxes, payments on loans, debt securities. And first dividends are paid to the owners of preferred shares and only then ordinary shares.
It's a candle, the price of opening and closing is the same. However, if the closing price differs from the opening price (and vice versa) by only a few pips, such a candle is also a doji. The appearance on the Dodge chart is a signal that there is a reversal of the trend.
This is a floating or real loss on the trading account of the trader, estimated in percentage or figures. Drawdown is first expressed as an unrealized loss, when closing a losing position; the drawdown amount is debited from the account. 100% drawdown is the total loss of a deposit. In any trading strategy, the percentage of drawdown is laid down; it shows the degree of exposure to this strategy to the risk.
The deliberate sale of assets in huge quantities, aimed at artificially lowering the exchange rate in the short term.
The process of issuing financial instruments (currencies, stocks, cryptocurrency, etc.)
Opening a position in the financial market, this can be made both automatically in a mechanical trading system, and manually after carrying out the necessary analysis and calculations. Searching for successful entry points to the market is the main task of the trader.
Is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets. Because equity crowdfunding involves investment into a commercial enterprise, it is often subject to securities and financial regulation. Equity crowdfunding is also referred to as crowd-investing, investment crowdfunding, or crowd equity.
A professional participant of the securities market, whose main function is the creation and provision of conditions for the conclusion of transactions. As a rule, the following tasks are assigned to exchange.
1. Providing a place - a stock exchange or an electronic trading system.
2. Organization of mutual settlements and deliveries on concluded deals. The Exchange acts as guarantor for the transactions conducted.
3. Dissemination of information on the results of trading.
EXCHANGE BOND (EB)
The company's obligation, issued under simplified rules. Unlike classic bonds, the issue of EB does not require state registration; this is the job of exchange. Placement of the EB occurs through an open subscription on the exchange, in the same place they apply. The bond issue prospectus includes less information than the prospectus for issuing ordinary bonds.
The device intended for mining of cryptocurrency, mainly based on a personal computer with a large number of video cards.
This is automatic redirection by cybercriminals of the Internet user to a false site - an exact copy of a real bank or merchant. Scammers distribute malicious programs to users' computers that are aimed at manipulating a HOSTS file or changing DNS information.
This is money that we used before the advent of cryptocurrency. Money that is issued by states.
It’s common way to steal a customer's personal data through the Internet.
FIXING OF PROFITS
Closing a trading position in the period when it still brings profit. It is implemented in order to avoid deterioration of market conditions.
FORK (FORK, SOFT FORK, HARD FORK)
Fork isuse the source code of crypto currency to start a new project from scratch, with some changes. One of the most famous forks is Litecoin, which is the fork of Bitcoin.
Soft fork is making changes to the current code of the cryptocurrency, which does not lead to a rigid network plug, that is, the division into different lockers. An example of SegWit softphone, after running at the current time about 20% of the services switched to the use of new addresses. But at the same time, who activated SegWit and who has not done so yet, can continue to interact without problems in the network bitcoin. New cryptocurrency as a result of softphone does not appear.
Hard fork ischanges in the code of cryptocurrencies, which lead to a rigid division of the network into two blocks that do not support each other. An example of the first successful bitcoin hardcore is Bitcoin Cash (BCash). The new BCash cryptocurrency was launched not from scratch, but taking into account the data of its Bitcoin parent. But after the plug, sending BCH to BTC addresses and vice versa is impossible, because blocks of different chains can’t be accepted by a blocking parent or hardcore.
This is cash on the trader's trading account, not burdened as a security against open positions.
Free margin is calculated by the formula:
CM = TD - NM;
Where: CM - free margin, TD - the current state of the deposit, NM - the required margin in open trading positions.
The free margin indicator is used to determine the number of trades that a trader can open at the current time.
It is an acronym from the English "Fear, Uncertainty and Doubt", which translates as "Fear, uncertainty and doubt". When a crypto community calls some FUD news, it means that the news is probably not an objective evaluation, but a rumor that can affect the price of bitcoin. For example, the news that China has banned the mining of bitcoins was held under the tag FUD. Therefore, FUD is rather a tactic of psychological manipulation, which is used to feed the news so as to sow uncertainty and doubt about the viability of the crypto currency.
HEAD AND SHOULDERS
This is a reversal pattern in technical analysis, which is formed when the uptrend weakens. The figure consists of three peaks, of which the second peak (head) is the highest. The lateral peaks are slightly lower than the central ones, but they are rarely completely symmetrical. The left and right shoulder can be different in height, width and formation time therefore, in order to correctly identify this figure, it is necessary to pay attention to its other signs.
This is investment fund with minimal legislative restrictions on the choice of financial instruments and management methods. The remuneration for the management of a hedge fund is not limited to anything other than an investment declaration or an agreement between the manager and investors. In practice, it can be from 1-2% of the value of assets to 20% of the profit.
It’s insurance of financial risks by taking the opposite position for an asset in the market. For example, the company produces a certain amount of tons of oil per month. But it does not know how much her production will cost in three months. It has an assumption that the price of oil may fall in the near future. Then, in order to insure its future profit, the company can open the opposite position, that is, sell the appropriate number of oil contracts on the exchange. Ortoconcludeonthenecessaryvolumeforwardtransactions.
Hodl (hold on for dear life)
This expression means "Hold On for Dear Life", which is translated from English as "hold on to the last (sigh)". According to the legend, the term first appeared in 2013 at the Bitcointalk.org forum, where a not very sober guy wrote a post with the title "I AM HODLING", in which he confessed that he did not understand anything in the auction, and all that he knows, - it's just keep bitcoin in your wallet. Since then, the crypto community has picked up this term and began to use it in cases where the cryptocurrency is worth keeping, not selling. It should be noted that since the birth of the term, the bitcoin course has grown in 6 times.
ICO (Initial Coin Offering )
The initial offering of coins is abbreviation by analogy with the IPO (Initial Public Offering - the first public sale of company shares) is a way of attracting primary capital using crypto currency.
This is a set of real or financial investments. In the narrow sense it is a set of securities of different types, different validity periods and different liquidity, belonging to one investor and managed as a whole.
The investment portfolio, consisting of various assets, is called diversified. Such a portfolio is less risky than a single security of the same profitability.
This is the probability of getting less from your investment than you expected. This also includes the possibility of losing part or all of the investment. Usually, the risk is measured by calculating the standard deviation of the historical or average return on a particular investment.
Important information about the project, which is owned by a limited number of people.
IPO (initial public offering)
This is the first public offering of shares of the new issue to an unlimited number of potential investors. In the world practice, IPOs are conducted so that the company's shares are sold on the exchange and it attracts funds in the open capital market.
JOINT-STOCK INVESTMENT FUND (SIF)
An open joint-stock company, the exclusive subject of which is the investment of property in securities and other objects provided for by law.
It’s ratio between the personal funds of the trader and the borrowed funds provided by the dealing center on special terms. The use of leverage allows trading in the financial market even to those traders who do not operate with large amounts of funds.
This is the technological solution for scaling Bitcoin and other cryptocurrencies (Lightcoin etc.). Proposed by Blockstream. It is a superstructure over the bitcoin protocol, which allows you to conduct transactions without writing to the block. It functions as bidirectional payment channels.
The ability of an asset to be sold quickly with minimal cash losses associated with the speed of implementation.
The type of equity security that gives the holder the right to receive a part of the net income from the activities of the joint-stock company in the form of dividends, as well as part of the company's property in the event of its liquidation.
There are two types of stocks: common and preferred.
Ordinary shares give owners the right not only to receive part of the company's profits, but also to participate in the management of the joint-stock company. At the same time one share corresponds to one vote at the general meeting of shareholders.
Preferred shares allow owners to receive a share in profits (usually greater than for ordinary shares), but they do not give a vote at the shareholders' meeting.
It’s procedure for admission of securities to trading on the exchange. Typically, the listing rules are determined by the exchanges themselves, based on the current legislation. The reverse procedure is called a delisting.
This is period of prohibition of resale of shares. The period during which certain shareholders are obliged to refrain from selling their shares. Often such a restriction is introduced due to the fact that the directors and managers of the company announcing the IPO have time to pre-purchase their shares at a lower price and can then illegally win on resale. The lock-up period is usually not less than 180 days, until the new market of this security is balanced.
This is the acquisition of securities, currencies or other assets in an effort to increase their value. It meets the investment strategy of "buy and hold." Players on the rise are called "bulls".
The amount of the deposit paid by the client is equal to the established percentage of the current market value of securities on the margin account. For example, if an investor has a futures contract on a margin account, he must maintain a certain amount of money on it, depending on the market value of the contract.
This is the ratio of trader's funds and collateral, which is expressed as a percentage. The marginal level shows the current risks, allowing them to be prevented. Paying attention to the margin indicator, the trader understands whether he has enough funds to open new transactions or support already open orders. Margin level can be found by the following formula: Margin Level = (Equity / Necessary Margin) x 100%.
Necessary and important process in the Bitcoin network and other crypto-currencies, as a result of which a new transaction block is added to the lock-up and coins are issued.
The meeting of the miners who collectively extract the block, and then divide the reward received. Mining pools are way to increase profitability with increasing complexity of mining.
It’s the computer on which the full current version of the blockchain is stored.
It’s technology, which allows increasing the anonymity of cryptocurrency transactions.
Exposed, automatically executed order, for the purchase or sale of cryptocurrencies on the exchange.
Is a form of trust management where the broker performs the share record, ensures equal rights of all traders and enables the system users to withdraw their share from the project. At the end of a trading period the profit made in the PAMM account is distributed among the investors of the account. A PAMM trader receives the commission stipulated in the agreement, which is a percentage of the overall profit on this particular account.
The payback period is the length of time required to recover the cost of an investment. The payback period of a given investment or project is an important determinant of whether to undertake the position or project, as longer payback periods are typically not desirable for investment positions.
It’s an open transaction in the financial market. A deal for a purchase is called a long position, and for sale - a short one. When a trader has an open position in his account, the deposit is at risk, and this risk is embodied in a floating loss or profit. After the position is closed, the risk disappears.
It’s creation of crypto-coins by the creator of cryptocurrency before the official announcement of its appearance. Allows the issuance of cryptocurrency before it enters the market. It is often used in fraudulent cryptocurrencies, but not all of the pre-monetary coins are mosaic.
The ultimate goal of investing in the project; net profit that the depositor receives in addition to the return of his personal funds.
Intentional mass buying of the currency, aimed at artificially increasing the exchange rate to the maximum possible values.
This is the price of a unit of one currency (base) in relation to another currency (quoted).
It’s the movement of prices in the opposite direction, after it reached an important technical level. Most often, rebounds occur after the end of the corrective wave.
Reinvestment is using dividends, interest and any other form of distribution earned in an investment to purchase additional shares or units, rather than receiving the distributions in cash.
This is the time that is assigned to the creator of the project to pay interest to investors.
Translated from English means fraud or scam. Russified term SCAM is reliably entrenched in the environment of investment Internet projects that raise funds for the implementation of the business idea, but do not release anything, as a result of which investors remain with nothing. Often, the organizers of SCAM after a successful fundraising begin to invent commonplace reasons to explain why there are no payments to investors. For example, they can say that hackers hacked them or the bank froze funds.
This is the sale of securities, currencies or other assets that the investor does not own at the time of sale. By selling assets borrowed, the investor hopes that over time their price will fall and he will be able to earn by buying them for a smaller amount. It is one of the types of exchange speculation. Players on the fall are called "bears".
A computer algorithm designed to conclude and maintain self-executing contracts performed in a blocking environment. Such contracts are written in the form of code that exists in a distributed registry - a block that is maintained and managed by a network of computers. In simple words, clever contracts allow you to exchange assets without recourse to intermediaries.
Receiving income from the difference in the purchase and sale price.
This is an indicator of the state of the securities market, calculated in a certain way on the basis of a basket of the most liquid ordinary shares or bonds. Stock indices allow you to assess the state of the stock market in a single whole, determine the current moment in the economic cycle.
This is an indication to the broker to close the deal when a certain level of price loss is reached. Stop Loss isthe price level at which the transaction will automatically close when fixing the minimum loss for you.
Derivative financial instruments, the contract under which the asset is sold and at the same time an obligation is assumed to redeem it back at a fixed price. The swap can be used for financing against security of securities and, conversely, for the loan of securities for the purpose of their delivery under the contract, for example, in case of opening a short position.
This is the type of deferred order to the broker about closing the deal when the price reaches a certain level - profit. If the price reaches the Take Profit mark, the deal will automatically close and record the profit.
This is the use of the price chart and the results of its mathematical processing (lines, neural networks, indicators, etc.) to predict the market situation. The basis of the technical analysis is the analysis of time-series rows - "charts", and also uses information about trade volumes and other statistics. Most often, TA methods are used to analyze freely changing prices, for example, on stock exchanges.
This person who enters into transactions in financial markets in order to obtain profit through price changes. If a trader uses the attracted funds of investors in trading, then he is usually called a managing trader.
This is one of the functions of the trading platform, which helps to effectively manage the Stop Loss level. This tool allows you to remove the maximum profit due to the programmed change in the Stop Loss level.
Transfer of money between two addresses.
This is the direction of the market and the price movement in a certain interval. Is the main concept of technical analysis.
Transfer of assets to the management of a person who will carry out various investment or trading activities aimed at increasing capital.
This is the management of the process of issuing securities and their distribution.
Change in price movements over time on traded financial assets (including cryptocurrency).
It’s short-term corrective figure, which is formed in the financial market during a temporary weakening of the trend movement and depending on the direction, can become both a signal of a reversal, and a signal of a continuation of the trend.
These are traders with a very large number of coins. Whales in most cases act as pampers.
A state where more than half of the processing capacity of the cryptocurrency network is controlled by one miner or a group of miners. Theoretically, this amount of processing power gives power over the network. This means that each client program on the network believes in the confirmed transaction block of the attacking party.