Question 1

What is Leverage?

Accepted Answer

Leverage is using borrowed funds or margin to increase your position size, magnifying both profits and losses.

Question 2

What is APR (Annual Percentage Rate)?

Accepted Answer

APR stands for Annual Percentage Rate, representing the yearly cost of borrowing or yield from lending or staking, expressed as a percentage.

Question 3

What is Liquidity?

Accepted Answer

Liquidity measures how quickly an asset can be bought or sold without causing significant price movement in the market.

Question 4

What is Slippage?

Accepted Answer

Slippage occurs when a trade executes at a different price than expected, often due to market volatility or low liquidity.

Question 5

What is a Limit Order?

Accepted Answer

A limit order is an instruction to buy or sell an asset at a specific price or better; it guarantees price but not execution.

Question 6

What is a Market Order?

Accepted Answer

A market order is executed immediately at the best available price, prioritizing speed over price control.

Question 7

What is Volatility?

Accepted Answer

Volatility measures how much and how quickly an asset's price fluctuates over time, indicating market risk.

Question 8

What is a Stop-Loss?

Accepted Answer

A stop-loss is an automated order that closes a position when price reaches a predefined level, helping to limit potential losses.

Trading Terminology

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