What are the professional terms for currency speculation?

A brief analysis of professional terms for currency speculation

Currency speculation, that is, digital currency trading, has spawned many professional terms in the industry. Master these terms Helps to better understand and participate in the cryptocurrency market.

Basic terminology

• Coin: The collective name for digital currencies, such as Bitcoin (BTC) and Ethereum (ETH).
• K-line chart: A chart showing the fluctuation of digital currency prices over time, consisting of Yin and Yang columns.
• Contract: A type of financial derivative that allows investors to trade without actually holding the asset.
• Leverage: A mechanism for borrowing funds to trade, which magnifies potential gains and losses.

Buy and sell terminology

• Buy (Buy): Purchase digital currency at a certain price.
• Sell: Sell digital currency at a certain price.
• Long (Long) : It is expected that the price of digital currency will rise. After buying, wait for the price to rise before selling to make a profit.
• Short (Short): It is expected that the price of digital currency will fall, borrow the digital currency to sell, and then buy it at a lower price and return the profit.

Trading terms

• Spot trading: Directly buy and sell digital currencies at the current market price.
• Futures Trading: Buy or sell digital currency at an agreed future time and price.
• Limit order: Set a specific price and automatically buy or sell when the price is reached.
• Market order: Buy or sell immediately at the best price in the current market.

Other Terms

• Blockchain: A distributed ledger technology used to record and verify digital currencies trade.
• ICO (Initial Coin Offering): A way to raise funds for new cryptocurrency projects.
• FOMO (Fear of Missing Out) : A panicky feeling about investing impulsively after seeing others making profits.
• FUD (Fear, Uncertainty, and Doubt): A feeling of panic following market volatility or negative news.

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