Investing

Profit is essentially what’s left over in revenue once expenses, costs and taxes involved have been deducted.

Options allow traders to reserve now and pay later for assets in exchange for a fee.

Overexposure is when a trader has invested too much into one asset.

A long is when a trader buys an asset with the hope of selling it at a later time for a higher price.

An on-chain transaction takes place on a blockchain without the help of a second-layer protocol and remains dependent on the state of the blockchain to validate it.

A short is when a trader borrows an asset at the current market price with the hope that prices will fall.

A rally is an upward movement in an asset’s price in a relatively short period.

Stablecoins are digital currencies that are minted on the blockchain, each with their own collateral structure.

Scalping is when traders enter and exit trading positions quickly based on relatively small price movements in order to make a profit.

A positive feedback loop in investing occurs when one event reinforces the other.

Asks and bids refer to the prices offered for assets on an exchange or brokerage.

An initial public offering (IPO) is the initial stage of a company going public and offering its shares for sale on a stock exchange.