Basics of Trading and Finance (Part 21) : Trading and Finance Terminology : A (1-18)

in hive-183397 •  2 months ago 

Intro

As a moderator of the Tron Fan Club community, I regularly write various tutorials on crypto blockchain and Tron related matters. The main purpose of these tutorials is to make our new users aware of these topics. In continuation of that I am writing tutorials on trading and finance. Hope you can easily learn some details of trading and finance through this tutorial series.

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In my last 20 tutorials on trading topic, I tried to discuss about the basic topics related to the finance and trading along with the basic idea of cryptocurrency and decentralization in the financial system. From this post I would like to share some terminologies related to trading. I shall try to cover an alphabet every day. Some alphabet has more terms but some has less terms. It will be a sequence of 26 alphabets. After that I try to cover some more terms which is not starting with alphabet.

  1. Accrued Income: This means money you’ve earned but haven’t received yet. For example, if you do a freelance job in December but get paid in January, that December income is accrued income.

  2. Acid Test Ratio: A quick way to check if a company can pay its short-term debts without selling inventory. It’s like checking if you have enough cash to cover your bills right away.

  3. Aggregate Demand: The total amount of goods and services people want to buy in an economy. Think of it as the sum of everyone’s shopping lists in the entire country.

  4. Aggregate Supply: The total amount of goods and services businesses are willing to sell. It’s like looking at the overall inventory available in a whole country’s stores.

  5. Aggregator: A service that collects information from various sources and presents it in one place. For example, a news aggregator pulls headlines from different news sites and shows them in one feed.

  6. Airdrop: Free distribution of cryptocurrency tokens to wallet addresses. Just think about a company giving away free samples of a new product to promote it. It can be money, crypto or any other physical or digital product.

  7. All Time High: The highest price or value ever reached. If Bitcoin was worth $60,000 at its peak, that’s its all-time high.

  8. All Time Low: The lowest price or value ever reached. If a stock dropped to $5 and never went lower, that’s its all-time low.

  9. Altcoins: Cryptocurrencies other than Bitcoin. It’s like the different brands of phones besides Apple, like Samsung or Google.

  10. Amortization: Spreading out loan payments over time. It’s like paying off a mortgage in monthly installments rather than all at once. This is used for scheduled load payments.

  11. aNFT: A type of NFT (non-fungible token) used to represent something digital or unique in the blockchain world. Think of it like owning a rare digital baseball card.

  12. API: A set of rules that lets different software programs talk to each other. For instance, a weather app uses an API to get weather data from a weather service..

  13. APR: Annual Percentage Rate; it shows the yearly cost of borrowing money, including interest and fees. It’s like knowing how much extra you'll pay on a loan or credit card over a year.

  14. APY: Annual Percentage Yield; it reflects how much money you earn from interest over a year, including the effects of compounding. It’s like knowing how much interest you’ll earn on a savings account.

  15. Arbitrage: Buying something at a low price in one market and selling it at a higher price in another. For example, buying rare sneakers in one country and selling them in another where they’re more expensive.

  16. Ask: The price a seller is willing to accept for a product or asset. If someone lists a stock at $50, that’s the ask price.

  17. Ask Rate or Price: Same as the "ask"—it’s the price a seller wants for something. If a house is listed at $200,000, that’s the ask price.

  18. Auction: A process where items are sold to the highest bidder. Like eBay, where people bid on items until the highest bid wins.



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Upvoted! Thank you for supporting witness @jswit.

It is important to learn and understand the basics of trading first before starting the journey as a trader and thanks to you for writing up this article explaining about those basics.

It is important to learn and understand the basics of trading first before starting the journey as a trader and thanks to you for writing up this article explaining about those basics.