Learning how markets work starts with mastering basic and advanced trading terms.
One commonly used term is a short call, which involves selling a call option without owning the asset.
This setup profits if the asset stays near the strike price, with losses increasing if there’s a strong move in either direction.
Wrapped Ethereum (wETH) is a tokenized version of Ethereum that follows the ERC20 standard.
The Gravestone Doji is a candlestick pattern that signals a potential bearish reversal.
In most pairs, one pip equals 0.0001, though this varies for JPY-based pairs.
This refers to the ability for traders to place orders directly into the market order book without intermediaries.
Another common concept is equity in trading, which refers to the total value of a trader’s account including unrealized profits and losses.
Understanding equity in trading margin requirements is vital to avoid liquidation or forced position closure.
Traders who understand the terminology are better prepared to make informed decisions in volatile markets.