TradeReply Education Center

ALPHA (PERFORMANCE RELATIVE TO MARKET)

Alpha measures the performance of an investment relative to a market index. A positive alpha indicates outperformance, while a negative alpha indicates underperformance compared to the benchmark.

ALPHA (STOCK MARKET)

Alpha is a measure of the active return on an investment compared to a market index.

ALPHA ADJUSTED FOR FEES

Alpha Adjusted For Fees shows excess returns relative to the market, accounting for costs and fees.

ALTCOIN

Altcoin is any cryptocurrency other than Bitcoin, often created to improve upon or offer alternatives to Bitcoin's functionality.

AMORTIZATION

Amortization is the process of gradually writing off the initial cost of an asset.

ANNUAL PERCENTAGE RATE (APR)

Annual Percentage Rate (APR) is the annual rate charged for borrowing or earned through an investment, expressed as a percentage.

ANNUAL PERCENTAGE YIELD (APY)

Annual percentage yield (APY) is the real rate of return earned on an investment, taking into account the effect of compounding interest.

ANTI-MONEY LAUNDERING (AML)

Anti-money laundering (AML) refers to laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.

ARBITRAGE

Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price, exploiting price differences of identical or similar financial instruments on different markets or in different forms.

ASIC (APPLICATION-SPECIFIC INTEGRATED CIRCUIT)

ASIC (Application-Specific Integrated Circuit) is a specialized hardware designed for a specific task, such as mining cryptocurrencies.

ASK PRICE

Ask Price is the lowest price a seller is willing to accept for a security.

ASSET ALLOCATION

Asset allocation is the process of dividing investments among different kinds of assets to optimize risk and reward.

ASSET TYPE

Asset Type refers to the classification of financial instruments, such as stocks, bonds, commodities, and currencies, that can be traded or invested in.

ASSET-BACKED SECURITIES

Asset-backed securities are financial securities backed by a loan, lease, or receivables against assets other than real estate and mortgage-backed securities.

ATOMIC SWAP

Atomic swap is a smart contract technology that enables the exchange of one cryptocurrency for another without using centralized intermediaries.

AVERAGE ENTRY PRICE

Average Entry Price calculates the average price paid to enter positions across transactions, trades, or the portfolio.

AVERAGE EXIT PRICE

Average Exit Price calculates the average price received for exiting positions across transactions, trades, or the portfolio.

AVERAGE LOSS

Average Loss calculates the average monetary loss of all losing transactions, trades, or the portfolio, highlighting typical downside risks.

AVERAGE TRUE RANGE (ATR)

Average True Range (ATR) measures market volatility over a specified period.

AVERAGE WIN

Average Win calculates the average monetary profit of all profitable transactions, trades, or the portfolio, providing insight into typical gains.

BALANCE OF PAYMENTS

Balance of payments is a statement that summarizes a country’s economic transactions with the rest of the world.

BALANCE SHEET

Balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

BASIS POINT

Basis point is one-hundredth of a percentage point, used in quoting interest rates.

BEAR MARKET

Bear market is a market condition where prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining.

BEARISH

Bearish describes a sentiment or market condition where investors expect prices to fall, leading to selling and downward price movement.