Day Trading Terms

SCALPING GLOSSARY

If you want to understand traders’ language, it's a must read for you.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

А

American Depositary Receipt (от ADR)
American Depositary Receipt (от ADR) - it is a kind of derivative security. The underlying asset of ADRs is the securities of a foreign company.

ADRs are needed for investors on American stock exchanges that can freely trade shares of companies from other countries. The holder of ADRs usually has the same rights as the holders of the shares (including the right to receive dividends). ADRs are traded in US dollars.

Ask
Ask  selling orders in the order book. Ask price - the offer price or the lowest price at which the seller agrees to sell. In scalper terminals, asks are located in the upper part of the glass. Market orders are executed instantly at the bid / ask price.
Altcoins
All cryptocurrencies, except for bitcoin, are traditionally called altcoins.

Scalpers often refer to the instruments of second and third tier crypto exchanges as altcoins. The volume of such instruments is significantly lower than of Bitcoin and Ethereum, and the volatility is usually higher.
Alts
The same as Altcoins

B

Bar
A method of displaying the price of an exchange instrument for a certain period of time, an alternative to line charts and Japanese candlesticks.

In the US, bars are more popular, in Europe and Asia, traders prefer Japanese candlesticks on charts. Generally, 99.9% of CScalp trades use candlestick charts.
Example: Chart of the same instrument, represented by bars (left) and candles (right).

Base currency
The currency for which a trader buys or sells cryptoassets. For example, in the BTCUSDT currency pair, USDT will be the base currency.
Bid
Buy orders in the order book. In scalper terminals, bids are located in the lower (green) part of the order book.
Bid traders
Traders that place buy limit orders.
Bitcoin
Bitcoin is the first and historians' main cryptocurrency, according to legend, created by Satoshi Nakamoto. The key features of Bitcoin are decentralization, anonymity, and security.

Bitcoin is considered a correlation instrument for other cryptocurrencies. If Bitcoin rises, it will push other cryptocurrencies to rise as well. Likewise, the value of altcoins decreases when BTC falls. In practice, scalpers observe bitcoin when trading any cryptocurrency. 

The first 50 BTC were generated on January 3, 2009. Bitcoin issuance will cease around 2140, after 21 million tokens have been issued. At the moment, for one reason or another, about 28.5% of BTC of the fixed emission size has been lost.

Bitcoin is split into smaller pieces. So, 1 BTC = 100,000,000 Satoshi.
Breakeven
The price level that has no profit or loss in an open trade. In other words, breakeven is a situation when the price returns to the point at which a trade was opened.

F

Flat
(trading flat, consolidation)
A situation when the market fluctuates in a channel. The opposite of a trending market.
Most of the time the market is sideways, the smaller part is moving directionally. Typically, scalpers wait for the trend and refrain from trades when the market is flat.

H

Hit the bid
Means that a trader sells at the prevailing bid price in a market.

S

Spike
A sharp increase in trading volume is usually accompanied by an increase in prices.
Stock
A stock is an equity security giving its owner the right to participate in the management of a joint-stock company and the right to receive part of the profit in the form of dividends.

Scalpers trade only stocks that large number of trades are made per day. There are stocks that have several trades are made per month on the exchange. Such papers are not suitable for scalping, even if the company is well-known and reliable.

Stocks in play
Stocks in play are that instruments that are growing or falling at the moment (volatile). Initially, the term was applied to speculation in stocks, but over time it began to be used for futures and cryptocurrencies.

Day traders and scalpers try to trade "stocks in play" because they can make more money. Typically, a stock becomes a "stock in play" when there is important news about it.

Example: The instrument on the chart has been in a flat position for a long time and was not of interest to traders. When it began to grow, traders began to actively trade it (volumes increased sharply). It can be said about such a tool that it has become a "stock in the play".
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