Must-learn for newbies in the crypto space

Coin-to-coin trading = Spot trading

Perpetual contract = Contract trading

Order = Trade (refers to the user's action of trading)

Buy = Long = Bullish on coin price (e.g.: User buys BTC at a price of 50,000, profits when the coin price rises above 50,000)

Sell = Short = Bearish on coin price (e.g.: User sells BTC at a price of 50,000, profits when the coin price falls below 50,000)

Market order = Current price order (executed directly at the current market price, quick operation); Limit order (User can set a specified price to place an order, e.g.: If the current price of BTC is 50,000, and the user believes the price will rise to 51,000 before falling, they can place a limit order at 51,000 to go short, which will automatically execute when the specified price is reached)

Position: Refers to the user's holding situation after placing an order

Full position = All-in (User invests all funds in the account into a single trade)

Reduce position: Selling part of the position, but not all

Heavy position: Investing most of the funds into trading (e.g., if the account has 50,000, the user invests more than half of the funds)

Light position: Investing a small amount of funds into trading (e.g., if the account has 50,000, the user only invests a small amount)

Empty position: No trading activity in the account

Take Profit: Selling virtual currency after profits reach a certain level to lock in gains

Stop Loss: Selling virtual currency after losses reach a certain level to avoid greater losses

Bull Market: Market trends continue to rise, outlook is optimistic

Bear Market: Market trends continue to fall, outlook is pessimistic

Bullish trader: Buyer, believes the coin price will rise, profits by buying low and selling high

Bearish trader: Seller, believes the coin price will fall, profits by selling high and buying low; rebound: a temporary rise in the coin price during a decline due to excessive drops

Consolidation (Sideways): Coin price fluctuates little, overall trend is stable

Slow decline: Coin price slowly decreases

Waterfall: Coin price drops rapidly, with a huge decline

Cut Loss: User misjudges the trend, for example, going long when bullish but the coin price drops, selling at a low price to minimize losses, or going short when bearish but the coin price rises, being forced to stop loss and exit

Trapped: User misjudges the trend, for example, going long when bullish but the coin price drops significantly, resulting in substantial losses

Break Even: After being trapped, the user waits for a period, and the coin price rises to the cost price or above