Crypto glossary

Clear language for complex markets.

Definitions for the terms used in crypto trading, structured setups, risk and exchange execution.

A

AltcoinA crypto asset other than Bitcoin.→APIA defined way for software systems to exchange authorised data or instructions.→Ask PriceThe lowest price at which a seller currently offers an asset.→

B

Bid PriceThe highest price a buyer currently offers for an asset.→BreakoutA move beyond a watched price boundary or range.→

D

DrawdownThe decline from an equity peak to a later trough.→

E

Entry PriceThe price or zone where a position is intended to open.→

F

Funding RateA periodic payment between long and short perpetual-futures positions.→FuturesA derivative contract whose value follows an underlying asset.→

L

LeverageBorrowed exposure that magnifies both gains and losses relative to margin.→Limit OrderAn instruction to trade only at a specified price or better.→LiquidationA forced position closure when available margin no longer meets requirements.→Long PositionA position that generally benefits if the asset price rises.→

M

Market OrderAn instruction to execute promptly at the best currently available prices.→

P

Position SizeThe quantity or notional value of an open trade.→

R

Risk-Reward RatioA comparison between planned loss and potential reward.→

S

Short PositionA position that generally benefits if the asset price falls.→SlippageThe difference between an expected execution price and the actual average fill.→Stop-LossAn exit instruction intended to limit loss after a setup is invalidated.→

T

Take-ProfitAn order or level used to realise gains at a planned target.→

V

VolatilityThe speed and magnitude of price movement over time.→

W

Win RateThe percentage of completed trades classified as winners.→