Glossary

33 terms • 5 categories

Glossary

Trading, DeFi, and platform terminology — search or filter by category.

Trading Basics Technical Analysis DeFi & Blockchain Risk & Portfolio Platform Features

Trading Basics

8 terms

Ask Price

The lowest price a seller is willing to accept for an asset. Also known as the "offer" price.

Bid Price

The highest price a buyer is willing to pay for an asset.

Spread

The difference between bid and ask price. A narrower spread typically indicates higher liquidity.

Market Order

An order to buy or sell immediately at the current market price. Guarantees execution but not price.

Limit Order

An order to buy or sell at a specific price or better. Guarantees price but not execution.

Stop-Loss Order

An order that automatically sells when price falls to a level, used to limit losses.

Take-Profit Order

An order that automatically sells when price reaches a profit level.

OCO Order

One-Cancels-Other — a pair of orders where if one executes, the other is automatically canceled.

Technical Analysis

8 terms

Moving Average (MA)

An indicator that smooths price data by creating a constantly updated average price over a period.

Exponential Moving Average (EMA)

A moving average that gives more weight to recent price data, more responsive to new information.

Relative Strength Index (RSI)

A momentum oscillator. Values above 70 indicate overbought, below 30 indicate oversold.

Bollinger Bands

A volatility indicator with middle SMA band and upper/lower bands at standard deviation multiples.

MACD

Moving Average Convergence Divergence — a trend-following momentum indicator.

Fibonacci Retracement

Tool identifying potential support/resistance levels based on Fibonacci sequence (23.6%, 38.2%, 50%, 61.8%, 78.6%).

Support

A price level where an asset tends to stop falling and may bounce due to buying pressure.

Resistance

A price level where an asset tends to stop rising and may fall due to selling pressure.

DeFi & Blockchain

7 terms

DeFi

Decentralized Finance — financial applications on blockchain without intermediaries like banks.

Liquidity Pool

Funds locked in a smart contract that provides liquidity for decentralized trading. LPs earn fees.

AMM

Automated Market Maker — DEX protocol that uses formulas to price assets instead of order books.

Yield Farming

Staking or lending crypto assets to generate returns, often across multiple protocols.

Impermanent Loss

Temporary loss LPs can experience when price diverges in an AMM pool.

MEV

Miner/Maximal Extractable Value — value extracted by reordering transactions within a block.

Layer 2 (L2)

A secondary protocol on top of Layer 1 to improve scalability and reduce costs.

Risk & Portfolio

5 terms

VaR (Value at Risk)

Estimates maximum potential loss of a portfolio over a period at a confidence level.

Sharpe Ratio

Risk-adjusted return: excess return above risk-free rate divided by standard deviation.

Drawdown

Peak-to-trough decline in portfolio value, measuring downside risk.

Liquidation

Forced closure of a leveraged position when margin falls below maintenance level.

Hedging

Taking offsetting positions to reduce impact of adverse price movements.

Platform Features

5 terms

AI Agent

Automated trading intelligence module analyzing market data and generating signals via ML models.

Whale Alert

Notification triggered when a large transaction (typically >$100K) is detected on-chain.

Smart Money

Institutional/professional traders whose activity may indicate future direction.

Copy Trading

Automatically replicate trades of selected experienced traders or strategies.

Paper Trading

Simulated trading with virtual funds without financial risk.