Glossary
One page per term: short definition, example, common misconceptions, related chapters.
D
- Drawdown - The decline from a peak to a trough, usually in % of account.
G
- Geo-blocking - Blocking access to a service based on the user's location.
K
- KYC - Know Your Customer: identity verification (document, often proof of address) required before full trading access.
L
- Liquidity - How much can be traded without moving the price materially.
O
- Order book - The live list of open buy and sell orders for a trading pair.
P
- Position sizing - How much to buy so the loss at the stop equals your planned risk.
- Proof of reserves - Exchange attests it holds client assets, ideally with liabilities shown (Merkle tree or audit).
S
- Sanctions - Government lists (e.g. OFAC SDN, EU) prohibiting dealings with named entities.
- Slippage - Difference between expected and executed price, typically on market orders.
- Spread - The gap between the best bid and best ask; a hidden cost of instant trades.
- Stop-Loss - An order that triggers a market/limit order when price reaches a level, capping the loss.
V
- VPN - Virtual Private Network: routes your traffic through another location.