Glossary - TraderPlan/wiki GitHub Wiki
NOTE: This page is currently under construction. I repeat, this page is currently incomplete.
A
Address - a secure identifier marked by a unique string of characters that enables payments to an individual's wallet via blockchain transactions. It usually requires a private key to access the funds. For example, Bitcoin addresses are alphanumeric strings that begin with a 1 or 3 while Ethereum addresses begin with '0x'.
Algorithm - a set of mathematical instructions or rules that need to be followed in problem solving. Algorithms are synonymous with autonomous trading, as they utilize them to automate transactions. Algorithms exist everywhere, there are even algorithms that help solve Rubix Cubes. If the algorithm is applied correctly, the outcome is that the cube is solved.
Arbitrage - the generation of risk free profits by trading between two markets which have different prices for the same asset. Buying low on one market and selling higher on the second market.
B
Bear market - a market that is moving in a downward trend (prices are going down). The term relates to the direction that a bear attacks, by swiping downwards with their claws.
Bear Trap - this is a manipulation of a stock or commodity by investors. Traders who “set” the bear trap do so by selling stock until it fools other investors into thinking it's an upward trend in value has stopped or is dropping. Those who fall for it will often sell at that time, fearing a further drop in value. At that point, the investors who set the trap will buy at the lower price and will release the trap, which is essentially a false bear market. Once the bear trap is released, the value will even out and climb again resulting in profits.
Bitcoin (BTC) - a type of cryptocurrency created by Satoshi Nakamoto in 2009. It was the first modern day digital currency that enabled instant P2P payments. It is unit of decentralized, digital currency which can be traded for goods and services. Bitcoin also functions as a reserve currency for the altcoin ecosystem.
Blockchain - a decentralized, digital ledger where transactions made in Bitcoin or other cryptocurrencies are recorded chronologically and publicly. The blocks contain information that, once it goes into the blockchain, it becomes part of the permanent and immutable database, connecting to other blocks in the blockchain like the links in a chain.
Bull Market - a market that is moving in an upward trend (Prices are going up). The term relates to the direction in which a bull attacks, horns low to the ground and striking upwards.
Bull Trap - this is a manipulation of a stock or commodity by investors. Traders who “set” the bull trap do so by buying stock until it fools other investors into thinking it's a downward trend in value has stopped or is increasing. Those who fall for it will often buy at that time, fearing missing out on an increase in value. At that point, the investors who set the trap will sell at the higher price and will release the trap, which is essentially a false bull market. Once the bull trap is released, the investors take their profits from the false increase and the value will even out and fall again resulting in losses.