Key terms for your work

• Market — the environment in which participants make trades and in which the prices of financial assets are formed and change.
• Exchange — an organized trading venue where participants can buy and sell financial assets or instruments linked to them.
• Asset — a financial instrument or object that can be traded. For example, stocks, currencies or Bitcoin.
• Asset price — the current value of one unit of a particular asset.
• Underlying asset — an asset whose value forms the basis of another financial instrument.

Example: Bitcoin → underlying asset, Bitcoin futures → derivative instrument.

• Financial Analyst — a specialist who analyzes the market, prices, data and other factors to assess the current situation and how the market might move.
• Trader — a specialist who analyzes the market, makes trading decisions and carries out trades.
• Trading Signal — a message or recommendation about a potential trading opportunity. It may include the trade direction, entry point, Stop Loss, Take Profit and other parameters.
• Open a Position — to start a trading position.
• Open Trade — a trade whose position has been opened but not yet closed.
• Close a Position — to end a trading position and lock in its current financial result.

• Buy — a trade opened in the expectation that the price will rise.
• Sell — a trade opened in the expectation that the price will fall.
• Long Position / Long — a position opened in the expectation that the price will rise.
• Short Position / Short — a position opened in the expectation that the price will fall.
• Entry Price / Entry — the price at which a trading position is opened.
• Exit Price / Exit — the price at which a trading position is closed.
• Market Reversal — a situation in which the price stops moving in its previous direction and starts moving the opposite way.

• Deposit — the funds deposited into a trading account and used for trading.
• Lot — the volume of a trading position.
• Position Size — the amount of funds or quantity of an asset for which a particular trading position is opened.
• Margin — your own funds used as collateral for a trading position, especially when trading with leverage.
• Leverage — a mechanism that lets you open a position larger than the funds of your own that you put up as collateral.

• Risk Management — managing risk while trading.
• Risk per Trade — the acceptable size of a potential loss on a single trade, set in advance.
• Stop Loss / SL — a level set in advance at which a position closes automatically to limit a potential loss.
• Take Profit / TP — a level set in advance at which a position closes automatically to lock in profit.
• Break-even / BE — moving a trade’s protective level to roughly the entry price after the price has moved in your favor. If the market then reverses, the trade may close near the entry point, with a result close to zero.

• Market Order — an order to open or close a trade at the current market price.
• Limit Order — an order placed in advance to open a trade at a specified price. The trade opens automatically when the price reaches the specified level.

Spot / Spot Trading — buying or selling an actual financial asset at the current market price.

The key feature: in spot trading, you acquire the asset itself.

Derivatives — financial instruments whose value depends on the value of another asset, the underlying asset.

Example: Bitcoin → underlying asset, Bitcoin futures → derivative.

The main types of derivatives:

• Futures / Futures Contract — a derivative financial instrument that lets you get a financial result from changes in the price of the underlying asset through a futures contract, without having to own the underlying asset itself.
• Options / Option — a derivative financial instrument that gives the buyer the right, but not the obligation, to buy or sell the underlying asset on specified terms.
• Forward / Forward Contract — an agreement between parties to buy or sell the underlying asset in the future on terms agreed in advance.
• Swap / Swap Contract — an agreement under which the parties exchange certain cash flows or financial obligations.

Trading Activity — actions related to carrying out trading operations: opening and closing positions, buying and selling assets and other operations provided for by the trading platform’s terms.

Trading bot — a software tool designed to simplify and partly automate the trading process based on a trading signal provided by the trader.

The bot does not generate trading signals on its own. The source of trading information is the trader.

The main parameters the bot works with:

• SL — Stop Loss
• TP — Take Profit
• BE — Break-even

The basic position parameters are set in the bot. Moving to break-even happens automatically if the trading signal calls for it.

• An underlying asset is the basis of a derivative instrument.
• Long is a position counting on a rise, Short on a fall.
• Margin is collateral for a position; leverage lets you open a position larger than your own funds.
• A market order is executed at the current price, a limit order at a specified price.
• The bot doesn’t generate signals: the source of trading information is the trader.