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Most Popular Finance Terms

Finance Terms

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Most Popular Finance Terms

Micro Transaction

As many cryptocurrencies can be split up into tiny units if you perform something known as a micro transaction then you are simply buying or selling a small unit.

Mooning

When any digital currency increases in value at a rapid rate of knots, which is something many of them do at one stage or another that occurrence is known as a cryptocurrency mooning.

Market Cap

The market cap or market capital of any cryptocurrency is the total value of them that are held, the value and the supply of coins are multiplied together to give you the total market cap.

Margin Trading

There are some very high risk digital currency trading strategies you can adopt and margin trading is when you magnify the intensity of your trade by risking all of your coin holdings.

Market Sell

When you sell a cryptocurrency you will need to visit a digital currency exchange and sell the units of that currency you want to sell, a market sell is when you sell at the current value.

Market Buy

A market buy is simply a type of market order as described above and one on which you will be buying a digital currency or digital asset at the current market value of those assets.

Market Order

By instructing an exchange to make a Market Order you are giving it permission to buy or sell on your behalf a certain amount of any digital currency at the current market price.

Limit Sell

If you wish to sell a digital currency but want to ensure that you are guaranteed to get a certain price for any holdings you have chosen to sell then you place a limit sell type of order.

Limit Buy

A limit buy is when you want to buy a digital currency but you are only prepared to do so when it reaches a value that you are prepared to pay for it, so the order is processed when it do so.

Limit Order

When a digital currency user places something known as a limit order they are simply placing an order to buy or even sell a digital currency when it reaches a certain levels of value.

Liquidity Swap

When someone takes part in a liquidity swap what they are doing is borrowing an off other people to allow them to trade in this case cryptocurrency values on an exchange.

Liquidity

The liquidity of any asset whether a cryptocurrency or not will always have its value determined ultimately by supply and demand and the liquidity (meaning availability) of that asset.

Leverage

Many investors in digital currencies are going to use borrowed funds and capital to invest in to give them a potentially much larger return on the cryptocurrency investments that they make.

Inputs

The inputs are simply any previously made transactions, and as such if you have a digital wallet for example the inputs are going to be all of the transactions made via that digital wallet.

ICO

When a new cryptocurrency goes on sale pre-launch that is known as an initial coin offering which is what ICO stands for, and often a bonus amount of those coins or tokens are offered.

Inflation

Inflation refers to the price of all manner of different goods that are available for sale in any economy and means those prices are going up as opposed to going down.

ETF

The is the term used to described an Exchange Traded Fund which are simply a type of trade that is placed and tracks the value of an asset or commodity placed to hopefully return a profit.

Escrow

When funds are put into Escrow they are kept by a third party until such a time that both sides of any trade or transaction confirm the transaction or trade has been preformed.

Demurrage

This is the name given to any currency that penalises its users when they try and hoard or save them and the fees and charge for doing so can often increase dramatically over time too.

Deflation

If you come across the term Deflation then it refers to the price of goods in any economy, as is an indication that those goods are becoming much lower in value.

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