Library of Trading terms related to Cryptocurrency

By triumphal | Invest

Trading terminology

“Financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, and precious metals. ” - Wikipedia

What is the crypto market?

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

In the Crypto market, stocks, bonds, precious metals, and so on are replaced by the Coin or Token codes of startup projects in the Crypto space.

Currently, laws related to this market are still limited. Anyone participating in the market should be fully equipped with knowledge to avoid Scam.

What is Trade Coin?

Trading Coin are basically the same as trading Forex, oil gold, US Securities, etc. The only difference is Trading Coin is related to Tokens, and products related to the Crypto market.

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

What is the Trade Bot?

Trade Bot can be understood as the use of Trading softwares which are written to automatically place orders.

Some applications have Bot Trading built in, such as: BitUniverse having Grid Trading, Trailing Bot, and so on.

What is Margin Trading?

Margin Trading also known as margin trading.

It is a form of trading that uses financial leverage so that users can trade, or exchange with a larger amount than the one they have. Then, they can create higher profits, and of course, the risk will also be higher than normal trading.

Margin Trading is a popular tool in markets with low volatility such as Forex, and Stock Market.

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

What is Swing Trading?

There are many different trading strategies including day trading, swing trading, news trading, and scalping.

If you trade in this strategy, you will:

  • Traders on high time frames (from H1) can hold orders from a few days to a week.
  • Can hold orders overnight.
  • Trade will usually follow the waves of the market.
  • Do not enter too many commands.

What is a trader?

Trader (or trader) is an individual who trades (buys / sells) financial products such as: forex pairs, stocks, indices, gold, silver, cryptocurrency... on behalf of myself or on behalf of another organization or individual.

When it comes to Trader, it is about short-term speculation and seeking profit through price spreads, buying low, sell high or sell high, then buy back.

What is Investor?

Investor means a person who participates in one or more investments in various forms.

Investors can be an individual, a business, an organization. The majority of investors invest money to gain economic benefits, which are business investment and production activities.

A few, often state-owned units, make public investments for the benefit of society, such as the construction of welfare and welfare projects.

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

What is Day Trader?

There are many different trading strategies including day trading, swing trading, news trading, and scalping.

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

  • Trade on timeframe (from M5 to H1).
  • A Trade order will usually end in a short period of several tens of minutes to several hours.
  • Day Trader usually does not hold orders overnight.
  • Usually on multiple orders in a day.

What is Trading For Living?

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

Trading For Living can roughly mean that Trader can support himself by trading.

What is Bull Trap / Bear Trap?

Bull Trap (understandable) is an inaccurate signal. Indicates that the downtrend has reversed and prices have gone up, when in fact it went up slightly and will resume the previous downtrend.

Bear Trap (understandable) is an inaccurate signal. It shows that the uptrend has ended and the current price is going down, when in fact it only goes down a bit and will resume the previous uptrend.

What are Bull Market and Bear Market?

Bull Market understands the market in an upward direction. A type of financial market where the prices of products in the market increase faster than the historical average, over a long period of time with large purchases.

Bear Market is the opposite of Bull Market.

What is hedging?

Hedging is a method to reduce risks when trading derivative products from undesirable price fluctuations.

Usually, when a market trend changes dramatically, it is necessary to open two new trend position positions against an old trend option.

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

For example:

The trend of BTC is declining, leading to the fact that altcoins are all reduced, brothers have two short positions with Altcoin. But you have the news XRP Big news is about to rise sharply and BTC is still in a downtrend.

But according to you analysis, BTC seems to go up, so you will use the Hedging method to minimize risk by opening a new Long XRP.

In case the trend of BTC suddenly changes to increase, you will cut off the other two Short Alt commands. Otherwise, you will cut the Long XRP order.

What is a breakout?

A breakout or breakout in technical analysis is when the price crosses a support or resistance level to stabilize / fluctuate above the previous resistance level or stabilize / fluctuate below the support level. old assistant.

What is martingale?

Martingale is a fairly popular trading strategy created to increase position after unprofitable orders and reduce profit after successful orders.

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

Martingale is in a high-risk trading strategy group. However, if used correctly this strategy, traders can get profit even when the percentage of losses is quite high.

For example, under Winrate, you have only 20% (1W - 4L) but you still have a profit.

On MarginATM My team had an article about Martingale. You can refer to below:

What is TP?

TP - Take Profit is a term in Trading. It means the profit-taking price for a trade.

What is SL?

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

What is a sidewalk?

Sideway is a way of calling when the market "moves". That is, there is no obvious volatility or the price is quite stable.

The price line in this phenomenon will move around in the middle of the zone created by resistance and support lines that cannot be broken.

Unlike the uptrend or downtrend, Sideway maintains a balance between buyers and sellers.

What is Margin Call?

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

What is scalper?

Scalping - Scalp or Scalper in Trading are the terms used to signify methods of surfing to earn small profits on a regular basis. By entering and exiting orders several times a day, never keep an order overnight.

What is a Momentum?

Momentum is temporarily understood as motivation or momentum.

If applying momentum from technical analysis, Momentum can understand the power of trend.

Can you imagine that when watching on the Chart we can recognize the trend of the price is increasing or decreasing but it increases sharply or not? Are there any signs of reversal?

But that was hard to see with just the naked eye. Those are often referred to as Momentum of prices.

What is trailing stop?

Trailing Stop is a type of stop loss order. However, different from the fixed stop limit, you set a stop loss at which point when you get to that point the order will be closed automatically. Trailing stop is a dynamic Stop loss that always moves in the same direction as the trend.

Trailing Stop Stop Loss points can be manually performed according to some indicators such as Parabolic SAR or some other indicators.

What is a Limit order?

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

For example:

BTCUSDT price is at 6200 brothers analyzed the price can be adjusted to 6000 before going up, so you place a Buy Limit order at 6000.

When the price of BTC to 6000 or lower, it will match your brothers.

What is the Stop Limit order?

The Stop Limit Order is a command that combines the characteristics of a limit order and a stop order.

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

What is a Market order?

Market order (Market Order) is a type of order immediately executed at market prices.

When sellers and buyers place orders, the buy and sell orders will match the market price.

What is Binance's OCO order?

OCO orders or "One Cancels the Other" orders (one remaining order cancellation) allow you to place two orders at the same time.

This command is a combination of two commands, the stop command and the stop command - the limit, but only one of the two commands can be executed.

In other words, as soon as either of the orders is partially or fully executed, the remaining order will be automatically canceled.

Note that if one of the two orders is canceled, the other one is also canceled.

This order is used to set Stop Loss and Take Profit automatically.

What is a Pivot Point?

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

Because, as traders think, Pivot Points are their support and resistance levels, which are areas where prices can reverse. This means that prices will turn around when prices reach these support levels.

R1-R5 is the price resistance zone, S1 - S5 is the support price area according to Pivot Point.

Where to learn Trading?

There are many sources of Trading learning online, from quality to quality.

To avoid that much trouble for new Traders. Margin ATM has built a Youtube channel and Website to provide you with content related to aspects of Trading.

You can learn Trading from there then explore yourself in other sources.

Telegram Group - A place for discussion and exchange among members: https://t.me/margin_atm

Telegram Channel - Place to share deals & shows: https://t.me/marginatm

Website MarginATM - Where to post articles of trade margin knowledge, instructions: https://marginatm.com/

Youtube Channel - The place where daily market update videos, technical analysis guides, Price Action: https://www.youtube.com/MarginATM

Facebook Page: https://www.facebook.com/MarginATM/

triumphal

What matters is not the standing position but the direction.