Blockchain Basic Terms

Position: It refers to the ratio of an investor's actual investment to the actual investment funds.

Full position: Use all funds to buy virtual currency.

Reduce positions: Sell some of the virtual currency, but not all of it.

Heavy position: Compared with funds and virtual currency, the share of virtual currency is higher.

Light position: Compared with virtual currency, the proportion of funds is higher.

Empty position: Sell all the virtual currency held in hand and convert it all into funds.

Take profit: After obtaining a certain amount of profit, sell the virtual currency held to prevent further expansion of losses.

Stop loss: When the loss reaches a certain level, sell the virtual currency held to prevent further expansion of the loss.

Bull market: The price is rising continuously and the outlook is optimistic.

Bear market: Prices are continuously falling and the outlook is bleak.

Long (going long): The buyer believes that the price of the cryptocurrency will rise in the future. They buy the cryptocurrency and then sell it at a high price to make a profit after the price has increased.

Short (Short Selling): The seller, believing that the price of the cryptocurrency will fall in the future, sells some of the coins in their possession (or borrows coins from the trading platform), locks the position, and waits for the price of the coin to fall to a certain level to realize profits. At the same time, it can also avoid risks.

Position building: Buying virtual currency.

Average down: Buying virtual currency in batches. For example, first buy 1 BTC, and then buy another 1 BTC.

Rebound: When the currency price drops, the price rebounds and adjusts due to the excessive speed of the decline.

Consolidation (sideways movement): The price fluctuates within a relatively small range, and the cryptocurrency price is stable.

Slow bleed: The price of cryptocurrency slides slowly.

Plunge (Waterfall decline): The price of the currency drops rapidly with a large margin.

Take a loss: After buying virtual currency, if the price of the currency drops, the virtual currency is sold at a loss to avoid further expansion of losses. Or after short - selling by borrowing currency, if the price of the currency rises, the virtual currency is bought at a loss.

Underwater: Expecting the price of the cryptocurrency to rise, but the price actually drops after buying; or expecting the price of the cryptocurrency to fall, but the price actually rises after selling.

Break even: When the price of a virtual currency drops after buying it, resulting in a temporary book loss. However, the price of the virtual currency then rebounds, turning losses into profits.

Miss the rally: After selling virtual currency due to a bearish outlook on the market, the currency price has been rising all the way, and one fails to buy in time, thus failing to earn profits.

Overbought: When the currency price continues to rise to a certain level, the buying power is basically exhausted, and the currency price is about to fall.

Oversold: The price of the cryptocurrency continues to decline to a certain low point. The selling power is basically exhausted, and the price of the cryptocurrency is about to rebound.

Bull trap: The cryptocurrency price has been consolidating for a long time, and there is a high possibility of a decline. Most of the short - sellers have sold their virtual currencies. Suddenly, the short - side raises the cryptocurrency price, luring the long - side to think that the price will rise. As a result, the long - side rushes to buy. Eventually, the short - side suppresses the price, leaving the long - side trapped.

Bear trap：When bulls buy virtual currency, they deliberately suppress the currency price, making bears think that the currency price will fall and sell one after another. As a result, they fall into the bulls' trap.