Glossary
Crypto trading terms from A to Z. Select a letter for quick navigation.
A
A mechanism that forcibly closes profitable positions when the insurance fund cannot cover losses caused by liquidations.
The lowest price at which a seller is willing to sell an asset right now. The best ask is the lowest price at the top of the order book, shown in the red area.
B
A sustained period of falling prices. Bears are traders who expect prices to decline and open short positions.
The highest price a buyer is willing to pay for an asset right now. The best bid is the highest price at the bottom of the order book, shown in the green area.
A website for viewing transactions and blockchain state. Examples include Tronscan for TRC-20, Etherscan for ETH/ERC-20, BscScan for BEP-20, and Blockchain.com for BTC.
A sustained period of rising prices. Bulls are traders who expect prices to rise and open long positions.
C
A price chart element showing the open, close, high, and low prices for a selected period.
A margin mode in which the entire account balance serves as collateral for all open positions. It is more resistant to liquidation, but increases the risk of losing the entire balance.
D
Funding an exchange trading account by transferring cryptocurrency from an external wallet or another exchange.
Financial instruments whose value depends on the price of an underlying asset. Futures are a type of derivative.
E
A service in which the exchange holds funds as an independent third party until both parties fulfill the terms of the trade. This eliminates counterparty non-performance risk.
A secure settlement mechanism in which a third party, the exchange acting as guarantor, locks funds until the trade terms are fulfilled. See “Trade Guarantor.”
F
A periodic payment between holders of long and short positions in perpetual futures. It is charged every 8 hours and keeps the futures price close to the spot price.
A contract to buy or sell an asset at an agreed price. ABCEX offers only perpetual futures with no expiration date.
G
The fee charged for executing a transaction on the Ethereum blockchain. Its size depends on network load and transaction complexity.
H
Opening a position that reduces the risk of loss on another position. For example, holding BTC on spot and opening a futures short to protect against a price decline.
The highest asset price during a selected period. On a candlestick, it is the top of the upper wick.
K
The user identity verification procedure. It is required to remove withdrawal limits and usually includes uploading an identity document and taking a selfie.
L
A multiplier that increases a trader's buying power using borrowed funds. With 10x leverage, a trader can control a position ten times larger than their deposit.
An order to buy or sell at a specified price. It enters the order book and waits for a matching order. It is charged the maker fee.
The exchange's forced closure of a position when it reaches the maintenance margin threshold. Liquidation is triggered by the Mark Price.
A position opened in expectation of a price increase. It earns a profit when the asset rises and incurs a loss when it falls.
M
A participant who places a limit order in the order book and adds liquidity. Makers pay a reduced fee.
Collateral locked when opening a leveraged position. Margin size = Position Size / Leverage.
A price calculated from average values across several exchanges. It is used to calculate PnL and liquidation price and helps protect against manipulation.
An order that executes immediately at the best available price. It guarantees execution, but not the execution price. It is charged the taker fee.
O
The total volume of all open positions for an instrument. Rising OI alongside a rising price confirms a trend. Falling OI indicates that positions are being closed.
A list of all active limit buy and sell orders with their prices and volumes. It shows the current balance between supply and demand.
A trade made directly with the exchange at a fixed price for the full amount. It is intended for large amounts and avoids slippage and order book impact.
The ability to trade an amount greater than your balance using funds borrowed from the exchange. ABCEX uses overdrafts for margin spot trading.
P
A futures contract with no expiration date that can be held indefinitely. Its price is tied to spot through the funding mechanism.
The difference between a position's current value and its entry value. Unrealized PnL applies to an open position; Realized PnL is recorded after closing.
S
A position opened in expectation of a price decline. It earns a profit when the asset falls and incurs a loss when it rises. It is opened directly in futures or by borrowing cryptocurrency in margin spot trading.
The difference between the expected and actual execution price of a market order. It occurs when liquidity is low or an order is large.
The difference between the best ask and the best bid. A narrow spread indicates high liquidity. A wide spread indicates low liquidity and higher hidden costs.
An order that automatically closes a position when a specified loss level is reached. It protects against unlimited losses.
T
An order that automatically closes a position when a target profit level is reached.
A participant whose order executes immediately, removing liquidity from the order book. Takers pay a higher fee.
The time period represented by one candlestick on a chart, such as 1 minute, 5 minutes, 1 hour, 4 hours, or 1 day.
V
The degree to which an asset's price changes. High volatility means sharp upward and downward movements, creating both more opportunities and more risk.