Explanation of technical terms for currency speculation

Explanation of terminology in the currency speculation industry, including long and short investment strategies, spot and futures trading types, leverage amplification multiples of investment funds, market makers providing trading liquidity, slippage and transaction price differences due to market fluctuations, FOMO and FUD affect investor decisions, miners and mining pools verify transactions to generate digital currency, bull market and bear market trends, altcoin and ICO project token issuance, DeFi provides decentralized financial services, etc.

Explanation of professional terms for currency speculation

In the field of digital currency investment, there are many specialized terms. It can be confusing for beginners. The following are some common currency speculation terms and their explanations:

Long and short

Bull: Investors who believe that the price of an asset will rise , perform buying or long operations.

Short: An investor who believes that the price of an asset will fall, sells or goes short.

Spot and Futures

Spot: A transaction to purchase and deliver digital currency immediately, with settlement time T 0.

Futures: A contract that agrees to buy or sell digital currencies at a specific date and price in the future, allowing investors to conduct leveraged transactions.

Leverage

amplifies the multiple of investment funds, allowing investors to conduct larger transactions with less principal. For example, 10x leverage means using $100 to make a $1,000 trade.

Market Makers

Provide bid and sell quotes on the exchange, provide liquidity and facilitate trading.

Slippage

The difference between the actual transaction price and the order price usually occurs when the market fluctuates greatly.

FOMO and FUD

FOMO (Fear Of Missing Out): The fear of missing out on investment opportunities may lead to irrational investment.

FUD (Fear, Uncertainty, and Doubt): Spreading negative or uncertain information to manipulate the market.

Miners and Mining Pools

Miners: Computers that use specialized equipment to verify transactions and generate new digital currency.

Mining Pool: Multiple miners join forces to increase the chance of finding a block and share the rewards.

Cryptocurrency terminology

Bull market: A period in which the digital currency market rises as a whole.

Bear market: A period of overall decline in the digital currency market.

Altcoins: Digital currencies other than Bitcoin and Ethereum.

ICO (Initial Coin Offering): The initial coin offering of a new digital currency project.

DeFi (Decentralized Finance): Financial services such as lending and trading without intermediaries.

The above are just some common terms. There are many other professional terms in the field of currency speculation, which require continuous learning and accumulation of experience.

The above is the detailed content of Explanation of technical terms for currency speculation. For more information, please follow other related articles on the PHP Chinese website!