TradeReply Education Center

PORTFOLIO DIVERSIFICATION METRICS

Portfolio Diversification Metrics measure the extent to which a portfolio is spread across different assets, sectors, or geographies. It helps assess the risk-reduction benefits of diversification and optimize asset allocation for better returns.

PORTFOLIO VALUE

Portfolio Value is the total market value of all open trades, representing the combined worth of active positions based on current prices. It excludes cash and liabilities, focusing on the value of held assets.

POSITION DIVERSIFICATION SCORE

Position Diversification Score measures how well the portfolio is diversified across assets or sectors.

POSITION SIZE

Position Size is the amount of an asset bought or sold in a single trade, often based on the trader's risk tolerance and account size.

POSITION TYPE

Position Type indicates whether a trader holds a long (buy) or short (sell) position in an asset.

PRE-TRADE RISK ASSESSMENT

Pre-Trade Risk Assessment involves evaluating potential risks before executing a trade. It includes analyzing factors like market conditions, volatility, and position size to make informed decisions.

PRICE BUFFER

Price Buffer is a monetary adjustment added to or subtracted from a specific price level, accounting for market fluctuations or execution delays to enhance precision in trading decisions.

PRICE-EARNINGS RATIO (P/E RATIO)

Price-earnings ratio (P/E ratio) is a ratio for valuing a company that measures its current share price relative to its per-share earnings.

PRICE-TO-BOOK RATIO (P/B RATIO)

Price-to-Book Ratio compares a company's market value to its book value, assessing whether a stock is over- or undervalued.

PRICE-TO-SALES RATIO (P/S RATIO)

Price-to-Sales Ratio compares a company's market value to its revenue, assessing its valuation relative to sales performance.

PRIVACY COINS

Privacy coins are cryptocurrencies that offer enhanced privacy features to protect the identity of users.

PRIVATE EQUITY

Private equity is capital that is not listed on a public exchange, composed of funds and investors that directly invest in private companies.

PROFIT ALLOCATION TO CAPITAL RESERVE PERCENTAGE

Profit Allocation to Capital Reserve Percentage is the account-level percentage of trade profits allocated to the Capital Reserve. It preserves capital, supports long-term planning, and ensures funds for future opportunities or risks.

PROFIT CONSISTENCY

Profit Consistency measures the percentage of profitable trades or transactions relative to the total trades, providing insight into the regularity and reliability of achieving profits.

PROFIT FACTOR

Profit Factor is the ratio of gross profits to gross losses. A value above 1 indicates a profitable strategy, while below 1 suggests losses. It helps evaluate the efficiency and profitability of a trading approach.

PROOF OF AUTHORITY (POA)

Proof of authority (PoA) is a consensus mechanism where a limited number of validators have the authority to validate transactions.

PROOF OF BURN (POB)

Proof of burn (PoB) is a consensus mechanism where miners burn their own coins to gain the right to mine new blocks.

PROOF OF IMPORTANCE (POI)

Proof of Importance (POI) is a consensus algorithm that prioritizes nodes based on their activity and stake in the network.

PROOF OF SPACE (POS)

Proof of Space (PoS) is a consensus algorithm where mining requires proving that a certain amount of storage space is available.

PROOF OF STAKE (POS)

Proof of stake (PoS) is a consensus mechanism where validators are chosen based on the number of coins they hold and are willing to 'stake' as collateral.

PROOF OF WORK (POW)

Proof of work (PoW) is a consensus mechanism that requires miners to solve complex mathematical problems to validate transactions and create new blocks.

PUBLIC KEY

Public key is a cryptographic key that can be shared publicly and is used to encrypt data or verify a digital signature.

PUMP AND DUMP

Pump and Dump is a fraudulent scheme where the price of an asset is artificially inflated (pumped) through false or misleading information, and then sold off (dumped) at the higher price, leaving other investors with losses.

PUT OPTION

Put option is a financial contract giving the owner the right, but not the obligation, to sell a stock at a specified price.

QUANTITY CLOSED

Quantity Closed represents the number of units exited from positions through sales or other closures, reflecting completed transactions.