Crypto Trading

Terms used in cryptocurrency trading, including long, short, leverage, liquidation, margin, funding rate, open interest and other concepts.

Stop Order

A conditional order activated after the market reaches a specified price level.

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Volatility

The degree and speed of price variation over a given period.

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Leverage

A mechanism that increases position exposure using borrowed capital or margin.

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Maintenance Margin

The minimum collateral level required to maintain an open position.

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Spread

The difference between the best available buy and sell prices.

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Crypto Trading

Trading cryptoassets using exchange and market mechanisms.

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Long Position

A position designed to benefit from an increase in the underlying asset price.

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Bid

The price buyers are willing to pay for an asset.

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Liquidation

Forced closure of a trading position because available collateral is insufficient.

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Trading Volume

The amount or value of assets traded during a specified period.

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Margin

Funds used as collateral for a leveraged or derivative trading position.

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Funding Rate

A periodic financing rate exchanged between participants in perpetual futures markets.

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Futures Trading

Trading futures contracts whose value is linked to an underlying asset.

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Margin Trading

Trading with borrowed funds supported by collateral.

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Open Interest

The amount of open derivative contracts that have not yet been closed or settled.

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Market Order

An order designed to execute immediately against available market prices.

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Order Book

A list of active buy and sell orders on a trading venue.

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Slippage

The difference between an expected and actual order execution price.

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Take-Profit

An order designed to automatically close a position at a target price level.

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Stop-Loss

An order designed to automatically exit a position after an adverse price move.

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Limit Order

An order to buy or sell at a specified price or a more favorable price.

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Short Position

A position designed to benefit from a decline in the underlying asset price.

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Liquidation Price

The calculated price level at which a position becomes subject to forced closure.

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Initial Margin

The minimum collateral required to open a trading position.

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Perpetual Futures

Futures-like contracts without a fixed expiration date.

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Derivatives

Financial instruments whose value or settlement depends on an underlying asset or reference.

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Spot Trading

Trading an asset with direct purchase or sale of the underlying cryptoasset.

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Market Depth

The volume of available buy and sell orders at different price levels.

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Ask

The price sellers are willing to accept for an asset.

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