Investing and Trading Glossary of Terms
A:
Appreciation – The increase in value of an asset.
Asset – Anything that holds value and is owned by a business or person.
Annualized – A process where figures covering less than one year are extended to cover a 12 month period.
APR (Annual Percentage Rate/Return) – The annual rate that is returned by an asset or the cost of holding a debt
B:
Bear Market (AKA being ‘Bearish’) – A long period of time where assets continually drop in price. For the Stock market this usually means 20% or more. For riskier assets like Cryptocurrencies this can be 70% or more. This is the opposite of a Bull Market.
Bit – Also known as a micro bitcoin, is equal to 1 millionth of a Bitcoin. 1 Bit = 100 Satoshis.
Blue Chip – Refers to assets that are relatively low risk and have high value (market cap) and have performed well historically.
For the stock Market this would be be top companies or indexes such as the S&P500, Microsoft, Nvidia, or Apple.
For Cryptocurrencies this means Bitcoin and sometimes can include other top Altcoins (such as Ethereum).
Break Even – Closing a trade at the same point you entered the trade, or closing a trade with $0 profit or loss, or selling an asset at the same price you bought.
Bull Market (AKA being ‘Bullish’) – A market where prices are in an upward trend. This is the opposite of a bear market.