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Glossary of terms

Glossary of Financial Terms used throughout the app.

Updated over 5 months ago

A

Affiliate: A person or company that promotes a business's products or services in exchange for a commission on sales or leads generated.

Algorithmic Trading: Using computer programs to automatically execute trades based on pre-set rules or algorithms.

API (Application Programming Interface): A set of protocols and tools that allow different software applications to communicate with each other.

API Keys: Unique identifiers that authenticate and authorize access to an API, allowing secure interaction between different software systems.

API SECRET: A confidential code paired with an API key to provide secure access to an API.

Asset: Anything of value that can be owned or controlled to produce positive economic value.

B

Backtested Strategy: A trading strategy that has been tested on historical data to evaluate its potential effectiveness.

Black Swan Event: An unpredictable event that is beyond what is normally expected and can have severe consequences.

Blue Chip Digital Assets: Established and financially sound cryptocurrencies or digital tokens, such as Bitcoin (BTC), Ether (ETH), Solana (SOL), and stable coins with high liquidity.

Bull Market: A period when the overall market is on the rise.

C

Central Banks: National financial institutions that control a country's monetary policy and regulate its money supply.

Commission: The fee paid to an affiliate for successfully referring a new customer or generating a sale.

Counterparty Risk: The possibility that the other party in a financial transaction might not fulfill their obligations.

Currency: Money in any form when in actual use or circulation as a medium of exchange.

D

DCA (Dollar-Cost Averaging) Strategy: An investment strategy where a fixed amount of money is invested at regular intervals, regardless of asset price fluctuations.

Derivatives: Financial contracts whose value is derived from the performance of an underlying asset, index, or entity.

Digital Assets: Any content, token, or cryptocurrency that exists in a digital form and comes with the right to use.

Diversification: Strategy of spreading investments across different assets, exchanges, and strategies to reduce risk exposure.

Dividend: A portion of a company's earnings is paid out to shareholders.

Dollar-Cost Averaging (DCA): An investment strategy where a fixed amount of money is invested at regular intervals, regardless of asset price.

E

Earning Potential: The possible income an affiliate can generate through their referral activities.

Entry Price: The price at which an investor buys an asset or enters a trade.

Entrepreneurship: The activity of setting up and running a business, taking on financial risks in the hope of profit.

Exchange Counterparty Risk: Risks associated with the solvency and reliability of cryptocurrency exchanges.

F

Fintech (Financial Technology): The use of technology to improve and automate financial services and processes.

Forward Contracts: A customized contract between two parties to buy or sell an asset at a specified price on a future date.

H

Hedge Funds: Investment funds that pool capital from multiple investors and employ various strategies to generate returns.

High-Frequency Trading (HFT) Activity: Trading activity characterized by rapid buying and selling of assets within short timeframes.

I

Invoice: A document issued by a business to a customer, detailing the products or services provided and the amount owed.

IP Whitelisting: A security measure that specifies which IP addresses are allowed to access a particular system or API.

K

KYC (Know Your Customer): A standard process used by financial institutions and cryptocurrency exchanges to verify the identity of their clients.

L

Leverage: The use of borrowed capital to increase the potential return of an investment.

Limit Orders: Instructions to buy or sell an asset at a specific price or better.

Liquidity: The ease with which an asset can be converted into cash without affecting its market price.

Liquidity Constraints: Limitations on trading volume due to insufficient market liquidity, affecting larger players and whales.

M

Market Cycles: Recurring patterns in financial markets, often categorized as Bull (upward trend) and Bear (downward trend) cycles.

Monetary Debasement: The lowering of a currency's value, often due to actions taken by central banks.

Merkle-Tree Proof of Reserves: A cryptographic verification method used by some cryptocurrency exchanges to prove they hold the assets they claim.

N

Network Marketing: A business model where independent representatives sell products directly to consumers and recruit others to do the same.

O

Open Interest: The total number of outstanding derivative contracts that have not been settled.

P

Passive Cash Flow: Regular income earned with minimal ongoing effort, often from investments.

Passive Income: Earnings derived from a venture in which an individual is not actively involved.

Passphrase: An additional security measure used alongside API keys and secrets for enhanced protection.

Position Size: The number of units invested in a particular security or asset.

Private Keys: Secure digital codes known only to the user and the cryptocurrency system, used to authorize transactions and prove ownership of a digital wallet or assets.

R

Referral System: A marketing strategy where existing customers or partners are incentivized to recommend a business's products or services to others.

Revenue Share: A business model where affiliates receive a percentage of the income generated from their referrals.

Risk Assessment: Process of evaluating potential risks associated with investments, including market volatility and liquidity constraints.

Risk Exposure: The amount of potential loss an investor faces from a particular investment or trading strategy.

Risk Management Strategies: Techniques used to mitigate trading risks, including scaling into positions, leveraging conservatively, and employing alternative risk management methods in lieu of stop-loss orders.

ROI (Return on Investment): A performance measure used to evaluate the efficiency of an investment or compare the efficiency of different investments.

S

Scaling into Positions: Strategy of gradually entering a trade by buying or selling in smaller increments.

Security Breaches: Unauthorized access or hacks targeting cryptocurrency exchanges, potentially resulting in financial losses.

Smart Sizing: Strategy optimizing trade size based on market volatility.

Spot Trading: The buying or selling of financial instruments for immediate delivery.

Stablecoin De-Peg Risk: Risk of stablecoins losing their peg to their underlying assets or currencies.

SSL Encryption: Secure Socket Layer encryption is used to protect API key transmission.

T

Token Pairs: Two different cryptocurrencies that can be traded against each other on an exchange.

Trading Bots: Automated programs that execute trades based on predetermined criteria or algorithms.

Two-Factor Authentication (2FA): An extra layer of security that requires two separate forms of identification to access an account.

V

Volatility: The degree of variation in trading prices over time, often used as a measure of market risk.

Volatility Clustering Theory: Analytical framework that examines volatility through standard deviations, influencing trading strategies.

W

Whitelist: A list of approved items, such as IP addresses or withdrawal addresses, that are given permission to interact with a system.

Withdrawal: The process of transferring earned commissions from an affiliate account to a personal bank account or cryptocurrency wallet.
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