Crypto Trading Terms

Accumulation

The market phase where smart money buys their coins.

Altcoin / Alt

Any cryptocurrency that isn’t Bitcoin.

ATH

All-time High.

Bear Market

A period of long-term downtrend in prices.

Bear Trap

A situation designed to trap sellers instead of buyers.

Bid/Ask

Bid is a buy order, Ask is a sell order in an auction-like setting.

Bounce

When a coin or market starts to rise after a decline.

Breakout

A price movement that breaks upper or lower trading range boundaries.

Bull Market

A market with continuous uptrend and new highs over time.

Bull Trap

When large players cause a sharp price rise to trap buyers.

Chop / Choppy

A period of sideways price movement causing uncertainty.

Consolidation

A period of price ranging in a defined region, leading to volatility.

Confirmation

Additional signals validating a trader's opinion on price direction.

Correction / Pullback

A price fall after reaching a new peak or rally.

Day Trading

Opening and closing a position within the same day.

Demand

Area with significant buying interest or support.

Downtrend

Price trend with lower highs and lower lows.

Distribution

The market phase where smart money sells their coins.

Dump / Crash / Nuke

Rapid price decline.

Exchange (Centralised / CEX)

Online marketplace for buying and selling cryptocurrencies.

Exchange (Decentralised / DEX)

Online marketplace on blockchain for trustless trading.

EV

Expected Value in probabilistic thinking for estimating trade returns.

Fade

Taking a position against the current trend of a coin.

Fiat

Currencies minted by central banks like USD, GBP, EUR.

Flat / Get Flat

Closing a position to remain neutral.

FOMO

Fear Of Missing Out in trading.

FUD

Fear, Uncertainty, and Doubt in negative news about a coin.

Front Running

Taking a position based on non-public information.

HTF

High Time Frame for longer-term candlestick chart analysis.

KYC

Know Your Customer verification on exchanges.

Leverage

Trading with more assets than owned, increasing risk and potential returns.

Long / Going Long / Long Trade

Buying order on perpetual futures.

Liquidity

Measure of demand and supply on order books for a coin.

Limit Order

Order executing at a predefined price when market reaches it.

LTF

Low Time Frame for near-term candlestick chart analysis.

Liquidation

Being stopped out of a position due to insufficient margins.

Market Cap

Current supply multiplied by the price of a coin.

Market Maker

Professional dealer on an exchange facilitating trades.

Market Order

Immediate order execution at the best available price.

Margin / Initial Margin

Funds required to open a leveraged trade.

Maintenance Margin

Balance needed to avoid margin call and liquidation.

Moon/Mooning

Sharp rise in a coin's value.

NY

New York.

OHLC

Open, high, low, close in candlestick charts.

Open Interest

Total open derivatives contracts for an asset.

Overbought

Market price rising too steeply in relation to fundamentals.

Oversold

Market price declining too steeply in relation to fundamentals.

PA / Price Action

Analysis based on price movements for trade signals.

P&L / PnL

Profit & Loss in a given timeframe.

Position Trade

Holding a position for multiple weeks or months.