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    Learn › Reference › Glossary

    Glossary

    Last updated 2026-07-17

    A–D

    ADX — Average Directional Index; measures trend strength (0–100), not direction. → Moving averages

    Altcoin beta — the tendency of non-BTC coins to amplify Bitcoin's moves. → Dominance & sentiment

    ATR — Average True Range; the average candle range, used to size stops and positions. → Volatility

    BOS / CHoCH — break of structure / change of character; swing-based trend continuation and reversal signals. → Order blocks

    Bollinger Bands — bands 2 standard deviations around a 20-SMA; measure volatility regimes. → Volatility

    Buying power — equity × leverage; the maximum total notional you can open.

    Cash settlement — closing a contract by exchanging profit/loss in currency rather than delivering the asset. → Futures

    CMF — Chaikin Money Flow; volume-weighted accumulation/distribution oscillator. → Volume Profile

    Derivative — a contract whose value derives from an underlying asset's price. → Futures

    Divergence — price making a new extreme while an indicator refuses to confirm it. → Momentum

    Dominance (BTC) — Bitcoin's share of total crypto market cap. → Dominance & sentiment

    Drawdown — peak-to-trough equity decline; a leaderboard tie-breaker. → Stops & drawdown

    E–L

    Effective leverage — gross notional ÷ equity; your true risk dial, regardless of the slider. → Leverage & margin

    EMA / SMA — exponential / simple moving average. → Moving averages

    Equity — wallet balance + unrealised PnL; the contest scoring number. → Reading your PnL

    Expectancy — average R gained per trade: (win% × avg win) − (loss% × avg loss). → Practice & review

    Fair value gap (FVG) — untraded price vacuum from a fast move; behaves like a low-volume node. → Order blocks

    Fibonacci retracement — pullback levels at fixed fractions (38.2%, 61.8%…) of a swing. → Fibonacci

    Funding rate — periodic payment between longs and shorts anchoring a perp to spot; every 8h here. → Funding

    Gross notional — the absolute notional of all open positions, summed (no offsets). → Leverage & margin

    Heikin-Ashi — averaged candles that smooth trends at the cost of true prices. → Candlesticks

    HVN / LVN — high/low-volume node in a volume profile: wall / corridor. → Volume Profile

    Ichimoku Cloud — five-line trend system built from range midpoints, projected in time. → Ichimoku

    Index price — the spot reference a perp is anchored to. → Perpetuals

    Initial margin (IM) — the entry gate: notional ÷ (equity × leverage) must stay ≤ 100%. → Leverage & margin

    Leverage — controlling notional larger than your balance; max 10x here. → Leverage & margin

    Liquidation — forced position closure when equity falls to maintenance margin. → Liquidation

    Liquidity pool / sweep — a cluster of resting stops; a spike that triggers them and reverses. → Order blocks

    Long / short — positioned to profit from a rise / fall. → Futures

    M–R

    MACD — momentum indicator from the gap between two EMAs. → Momentum

    Maintenance margin (MM) — the survival floor: gross notional × 0.8% here. → Leverage & margin

    Maker / taker — adding liquidity with resting orders (0.02%) / removing it (0.04%). → Orders & fees

    Mark price — smoothed fair value used to value positions and trigger liquidations. → Perpetuals

    Notional — position size × price; the base for fees, funding and margin. → Futures

    OBV — On-Balance Volume; cumulative volume line used for divergence. → Volume Profile

    Open interest (OI) — total notional of open contracts; measures leverage in the system. → Derivatives data

    Order block — the last opposite candle before an impulsive move; a supply/demand zone. → Order blocks

    Parabolic SAR — trailing dot indicator that flips with trend reversals. → Moving averages

    Perpetual (perp) — a futures contract with no expiry, anchored by funding. → Perpetuals

    Pivot points — formulaic intraday levels computed from the prior period's OHLC. → Support & resistance

    POC / Value Area — the highest-volume price / the band holding ~70% of volume. → Volume Profile

    R — one unit of risk: the amount lost if your stop is hit. → Practice & review

    Realised / unrealised PnL — locked-in profit or loss / the floating kind on open positions. → Reading your PnL

    Reduce-only — order flag that can only shrink a position, never grow or flip it. → Orders & fees

    RSI — Relative Strength Index; momentum on a 0–100 scale. → Momentum

    S–Z

    Slippage — the gap between the price you saw and the VWAP you got. → Orders & fees

    Stop-market — a dormant order that becomes a market order at your trigger price. → Orders & fees

    SuperTrend — ATR-based trailing trend indicator. → Moving averages

    Support / resistance — price floors and ceilings created by clustered intentions. → Support & resistance

    VWAP — volume-weighted average price; the session's real average fill. → VWAP

    Wyckoff method — 1930s framework for reading accumulation and distribution; SMC's ancestor. → Order blocks

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