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.
All-Time-Low (ATL) - The lowest point (in price, in market capitalization) that a cryptocurrency has been in history.
Altcoin - as Bitcoin was the first cryptocurrency that became popular worldwide, all other coins were subsequently termed “altcoins,” as in “alternative coins.”
Anti-Money Laundering (AML) - A set of international laws enacted to curtail criminal organizations or individuals laundering money through cryptocurrencies into real-world cash.
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.
Asset – an economic resource, which can be owned or controlled to return a possible future benefit.

B

Bag – a significant quantity of a specific cryptocurrency is considered a ‘bag’.
Base currency – base currency is the first currency quoted in a forex 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%.
Bitcoin ATM (BTM) – a machine from which you can withdraw bitcoin.
Bubble - a situation where market participants drive prices up above their value, which is usually followed by a steep, rapid drop in prices.
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.
Burned - when a coin or token has been made permanently 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.
Cash - a physical form of a currency, such as banknotes 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.
Cipher - the name given to the algorithm that encrypts and decrypts information.
Close - refers to the closing price.
Coin - a cryptocurrency that can operate independently.
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.
Cryptography – a field of study and practice to secure information, preventing third parties from reading information to which they are not private.
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.
Decryption - the process of transforming data that has been rendered unreadable through encryption back to its unencrypted form.
Depth Chart - a graph that plots the requests to buy (bids) and the requests to sell (asks) on a chart, 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.
Dumping - the action of collective market sell- offs, creating downward price movement.

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.

F

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

G

Gains - an increase in value or profit.

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

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.
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.
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.

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.