Essential for beginners in the crypto circle

Coin-to-coin trading = Spot trading

Perpetual contract = Contract trading

Placing an order = Making an order (refers to the user's trading operation)

Buy = Long = Bullish on coin price (e.g., user buys BTC at 50,000, profits when the coin price is above 50,000)

Sell = Short = Bearish on coin price (e.g., user sells BTC at 50,000, profits when the coin price is below 50,000)

Market order = Current price order (trades executed at current market price, quick operation) Limit order (user can set a specified price for placing an order, e.g., if the current price of BTC is 50,000, and the user thinks the price will rise to 50,100 and then drop, they can place a limit order to short at 50,100, which will automatically execute when the specified price is reached)

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

Full position = Going all in (user invests all funds in the account into a trade)

Reducing position: Selling part of the position, but not selling all

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

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

Empty position: No trading operation performed with the funds 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 continues to rise, outlook is positive

Bear market: Market continues to decline, 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 drop, profits by selling high and buying low; rebound: A temporary rise during a drop due to excessive decline

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

Slow decline: Coin price gradually decreases

Waterfall: Coin price $BTC $ETH drops rapidly, with a huge decline

Cutting losses: User makes an incorrect judgment, e.g., going long when bullish but the coin price drops, sells at a low price to minimize losses, or goes short when bearish but the coin price rises, forced to stop loss and exit

Trapped: User misjudges the trend, e.g., goes long when bullish but coin price drops significantly, resulting in large losses

Breaking even: After being trapped, the user waits for a period until the coin price rises back to the cost price or above