GLOSSARY

All you need to know

A

All-Time-High (ATH) – The highest point (in price, in market capitalization) that a cryptocurrency has been in history.

The highest value of the price and/or the market capitalization a specific asset/cryptocurrency.

All-Time-Low (ATL) – The lowest point (in price, in market capitalization) that a cryptocurrency has been in history. The lowest value of the price and/or the market capitalization a specific asset/cryptocurrency.

Altcoin – as Bitcoin was the first cryptocurrency that became popular worldwide, all other coins were subsequently termed “altcoins,” as in “alternative coins.”

Short for Alternative Coin, as in every other digital currency apart from Bitcoin, which is the first cryptocurrency – hence the origin of the term.

Anti-Money Laundering (AML) – A set of international laws enacted to curtail criminal organizations or individuals laundering money through cryptocurrencies into real-world cash.

A set of legal procedures and regulatory policies aiming to counter money-laundering activities from illicit criminal activities.

Arbitrage – a simultaneous purchase and sale of an asset in order to profit from a difference in price. It is a trade that benefits by exploiting price differences of identical or similar financial instruments, on different markets.

Concurrent buying and selling of assets and/or financial instruments with the sole aim of realizing a profit from rate differences. This practice is applied on different markets, so to exploit and benefit from Bid and Ask price differences.

Asset – an economic resource, which can be owned or controlled to return a possible future benefit.

A tangible or intangible resource, which can be owned and managed so to return a future profit.

B

Bag – a significant quantity of a specific cryptocurrency is considered a ‘bag’.

A substantial amount of cryptocurrency in one’s ownership.

Base currency – base currency is the first currency quoted in a forex pair.

The underlying/firstly-quoted currency in a currency pair.

Basis point – the unit used to describe movements in interest rates or other percentages; it is equal to one hundredth of one percent, or 0.01%.

A hundredth of a 1% – 0.01 or one-ten thousandth 0.0001 – a unit, which is displays price movements in market trading.

Bitcoin ATM (BTM) – a machine from which you can withdraw bitcoin.

An automated teller machine, enabling the withdrawal of Bitcoin in fiat currency.

Bubble – a situation where market participants drive prices up above their value, which is usually followed by a steep, rapid drop in prices.

Artificial inflation of an assets price thanks to high demand market speculation and manipulation.

Bull – a person that is optimistic and confident that market prices will increase. This person is also known to be “bullish” about the market or price.

A market participant with firm belief in the appreciation of the price of an asset.

Burned – when a coin or token has been made permanently unusable.

A digital assets unit, which is terminally lost and unusable

C

Candlesticks – a candlestick chart is a graphing technique used to show changes in price over time. Each candle provides 4 points of information: opening price, closing price, high, and low. Also known as “candles” for short.

A charting/graphing technique utilized to display asset price changes, including opening and closing rate, as well as price tops and bottoms for a selected time period.

Cash – a physical form of a currency, such as banknotes or coins.

The tangible/physical form of fiat money i.e. banknotes and/or coins.

Chargeback – a demand made by a credit-card provider for a retailer to make good on the loss on a fraudulent or disputed transaction, reversing said payment or money transfer after it is authorized.

The disputation of a financial transaction where the payer demands the reversing of a payment of its authorization and processing.

Cipher – the name given to the algorithm that encrypts and decrypts inormation.

An algorithmic code applied to perform encryption of decryption of cryptocurrency transactions.

Close – refers to the closing price.

The price point at which a market participant disposes of an underlying asset or financial instrument

Coin – a cryptocurrency that can operate independently.

A unit of a specific blockchain-based cryptocurrency.

Cryptocurrency – a digital medium of exchange using strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

A digital mean of storing and exchanging value, operating on a dedicated, encrypted network.

Cryptography – a field of study and practice to secure information, preventing third parties from reading information to which they are not private.

The science of developing and utlizing computer code to create encoded, secret messages.

Cypherpunk- an activist who advocates for the mass adoption and use of strong cryptographic solutions and privacy-enhancing technologies.

D

Dead Cat Bounce – a temporary recovery in prices after a huge decrease.

Brief market price uplift after a significant decrease.

Decryption – the process of transforming data that has been rendered unreadable through encryption back to its unencrypted form.

The transformation of unreadable data in to intelligible information.

Depth Chart – a graph that plots the requests to buy (bids) and the requests to sell (asks) on a chart, based on limit orders.

Graphical display of buy and sell requests, based on limit orders.

Digital Currency – a type of currency available only in digital form, allowing for instantaneous transactions and borderless transfer-of-ownership.

Dump – to sell off all your coins.

Disposing/Selling of all owned assets and cryptocurrencies.

Dumping – the action of collective market sell- offs, creating downward price movement.

The act of mass selling of a specific assets, creating a value downtrend.

E

Emission – emission, also known as Emission Curve, Emission Rate and Emission Schedule, is the speed at which new coins are created and released.

Exchange – a central marketplace with established rules and regulations where buyers and sellers meet to trade futures and options on futures contracts.

A regulated platform marketplace, where participants can acquire and sell digital assets at market prices.

F

Fish – someone who holds insignificant amounts of cryptocurrencies, often at the mercy of whales who move the market up and down.

A market participants, who is in possession of minimal amounts of a speocific digital asset, hence has zero effect on market prices.

G

Gains – an increase in value or profit.

Accumulated profits from the increase of value of owned assets.

H

Hash – the act of performing a hash function on input data of arbitrary size, with an output of fixed length that looks random and from which no data can be recovered without a cipher.

Head & Shoulders – a technical analysis term, describing the chart formation where a stock price peak is preceded and followed by two smaller peaks, both at the resistance point of a stock cycle, sometimes indicating a trend reversal.

HODL – a type of passive investment strategy where you hold an investment for a long period of time, regardless of any changes in the price or markets. The term first became famous due to a typo made in a Bitcoin forum, and the term is now commonly expanded to stand for “Hold On for Dear Life.”

I

Income – the portion of investment return from interest or dividend payments, taxable at an individual’s ordinary income tax rate.

 

Inflation – the rate at which the general level of prices for goods and services is rising, usually measured by the Consumer Price Index or Producer Price Index.

The devaluation of a specific assets, especially fiat currencies, expressed in the general rising of prices as measured by the Consumer Price Index mainly.

Inflation Risk- the risk that the yield of an investment will be diminished by rising inflation rates.

Interest – the rate charged by the lending for borrowing money over a specified amount of time.

J

JOMO – stands for “Joy of Missing Out.” Most often used by no-coiners who declare their happiness that they are not involved in cryptocurrencies, usually when prices are declining.

K

KYC – “Know Your Customer,” this process refers to a project’s or financial institution’s obligations to verify the identity of a customer in line with global anti-money laundering laws.

L

Last – the price at which the security last traded.

Limit Order – an order instruction which sets the highest price the client is willing to pay for a buy order, or the lowest price the client is willing to accept for a sell order.

Long – a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later.

The act of acquiring an asset with the intention to remain in ownership for a prolonged time period with the anticipation of significant price increase.

Lot – a group of assets that is traded instead of a single asset.

Low – the lowest closing price of a stock over a certain period of time.

M

Minus Tick – an execution price below the previous transaction.

Moon – a situation where there is a continuous upward movement in the price of a cryptocurrency.

Moving Average – a technical analysis term measuring the average of data for a certain number of time periods. It is calculated using data from a fixed number of time periods, when a new value is added, the last trailing value is removed, hence the name “moving” average.

N

Net Assets – the total assets held in a mutual fund.

Noise – price and volume fluctuations that do not show a clear market direction.

Dynamic, intense asset price movements without an identifiable market trend.

Nominal Yield – the interest rate stated on the face of the bond.

NTF – “No-Transactions-Fee”, describes mutual funds that don’t charge a transactions fee.

O

Offer – the lowest price at which an investor or dealer is willing to sell shares of a security.

On-Balance Volume Index – this is the ratio of volume to upward price movement, used in technical analysis to determine if a security is being heavily bought into or sold out of.

Opening Purchase – a transaction made by an investor with the intention of creating or increasing a long option position.

Opening Sale- a transaction made by an investor with the intention of creating or increasing a short option position.

Opening Transaction – an investor either buying or selling an option contract to open a new position.

Option – a contract that gives the buyer the right to buy or sell a predetermined quantity of an underlying security during a specific period of time at a predetermined price.

Option Adjustments – adjustments made to the terms of an option contract to reflect changes in the underlying security, such as a dividend payment or split.

Out-of-the-Money – an option is out-of-the-money if the price of the underlying security is below the strike price of a call option, or above that of a put.

P

Pair – trade between one cryptocurrency and another, for example.

Par Value – the face value of a bond.

Payee – the person or business receiving a payment.

Payment Date – the date on which an announced stock dividend or a bond interest payment is to be made.

Payout Ratio – the percent of earnings-per-share that was paid out as dividend.

Pit – the circular area on a trading floor, where futures and options are bought and sold.

Pivot – a price level noted by the market’s failure to penetrate or a sudden increase in volume that accompanies the move through the price level.

Q

Quick Ratio – also known as acid test, it is an indicator of a company’s financial condition, calculated by taking current assets less inventories, then divide by current liabilities.

Quote – the highest bid and lowest asking price for a security at a particular time.

R

Range – the difference between the high and low trading price during a given period.

Rate of Return – the percentage gain or loss within a specific time period, assuming that all distributions are reinvested at the current rate of return.

Realized Gains/Losses – the gain or loss that is realized after converting the security into cash.

Real-Time Quote – a stock or bond quote that shows a security’s most recent ask and bid prices.

Refunding – the retiring of a debt instrument using proceeds from the issuance of a new debt instrument.

Retracement – a price movement in the opposite direction of the previous trend.

A sudden loss of value, following a substantial asset price increase, also know as market price corrections.

Return – the money earned by investments over a period of time.

The amount of money paid out after a successful investment.

Risk – the inherent possibility that an investment will lose value.

S

Sell-Out – when client incurs a margin or maintenance call and fail to settle the balance by settlement date.

Mass closing of positions when account balance reaches agreed margins.

Short Account – the margin account in which the client has sold short securities.

Short Exempt – a short sale that is exempt from the short sale rules, such as converting a convertible preferred and selling the common stock before the stock is received.

Short Interest – a technical analysis of market sentiment, calculated by dividing the total shares sold short of a stock by its average daily trading volume.

Spin-off – selling off a part of an existing firm to form another independent company, through the sale or distribution of new shares.

Spread – the difference between the bid and ask of a quote.

Stop Order – a type of order not executed until the specified price has been reached or passed, at which it becomes a market order.

Stop-Loss – a stop order to sell set below the current price, mostly used for volatile stocks, so that potential losses are limited if the stock declines rapidly.

T

Tax Anticipation Note – a municipal note issued in anticipation of revenues from a future tax.

Tax-Exempt Bonds – municipal securities whose interest is exempt from federal income tax.

Ticker – a digital scrolling display showing prices and volume of traded securities.

Total Assets – total sum of current assets plus total long-term assets.

Total Revenue – total sales and other revenue for a specific period.

Trade – a transaction involving one party buying a security from another party.

A financial transaction involing a buying and selling party in mutual agreements.

U

Unconfirmed – a state in which a transaction has not been appended to the blockchain.

Underlying – the security on which options are being bought or sold.

Unwind – an advanced option order used to intentionally close an existing buy/write or sell/write position.

Uptick – a listed equity trade at a price that is higher than that of the last transaction.

UTC Time – coordinated Universal Time. It is the primary time standard by which the world regulates clocks and time, kept using highly precise atomic clocks combined with the Earth’s rotation.

V

Validator – a participant on a proof-of-stake (PoS) blockchain, involved in validating blocks for rewards.

Vanity Address – a cryptocurrency public address with custom letters and numbers, usually picked by its owner.

Vaporware – a cryptocurrency project that is never actually developed.

A cryptocurrency project, which is not functional or fully-developed.

Venture Capital – a form of private equity provided to fund small, early-stage firms considered to have high growth potential.

Volume – the total number of shares of a stock traded during a specific time period. High volumes usually correspond to news announcements regarding the company.

W

Wallet – a cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency.

Whale – a term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market.

A term describing individuals and institution, which possess significant amounts of an assets and thus influence prices when buying and/or selling.

White Knight – a company that rescues another in financial trouble, preventing a takeover by a hostile bid.

Writer – the seller of an option contract.

W-Type Bottom – two consecutive bottom shapes on a price or indicator chart, resembling the alphabet W.

Y

YTD – stands for year to date.

Year to Date refers to the time period beginning the first day of the current calendar year or fiscal year up to the current date.

Z

Zero Confirmation Transaction – alternative phrasing for an unconfirmed transaction.

Zero Knowledge Proof – in cryptography, a zero-knowledge proof enables one party to provide evidence that a transaction or event happened without revealing private details of that transaction or event.