April 27, 2025
Trading Lingo Every Beginner Should Know
Every job or hobby has its own set of words that only make sense to people who are deep into it. Trading’s no different.
| Term | Explanation |
|---|---|
| Bull Market | rising market |
| Bear Market | falling market |
| FOMO | fear of missing out |
| FUD | fear, uncertainty, doubt |
| Pump | rapid price increase |
| Dump | rapid price drop |
| Bagholder | stuck holding bad assets |
| Moon | extreme price surge |
| To the Moon | major price rally |
| Correction | small pullback after rise |
| Dip | temporary price drop |
| Buy the Dip | buying during dip |
| ATH (All-Time High) | highest price ever |
| ATL (All-Time Low) | lowest price ever |
| Breakout | breaking resistance upward |
| Breakdown | breaking support downward |
| Resistance | price ceiling |
| Support | price floor |
| Liquidity | ease of trading |
| Stop-Loss | automatic sell to limit loss |
| Take-Profit | automatic sell at profit |
| Risk/Reward | ratio of risk to reward |
| PnL | profit and loss |
| Scalping | quick trades for small gains |
| Swing Trading | holding trades for days |
| Day Trading | opening/closing trades same day |
| HODL | holding long-term |
| Margin | borrowed funds for trading |
| Leverage | amplified position size |
| Liquidation | forced sell due to loss |
| Short | betting price will fall |
| Long | betting price will rise |
| Entry Point | buying moment |
| Exit Point | selling moment |
| Sideways Market | flat price movement |
| Overbought | price too high temporarily |
| Oversold | price too low temporarily |
| Whales | big money players |
| Market Maker | entity ensuring liquidity |
| Slippage | bad execution price |
| Spread | difference between bid and ask |
| Order Book | list of buy/sell orders |
| Limit Order | set buy/sell at a price |
| Market Order | instant buy/sell |
| Stop Order | trigger at specific price |
| Flash Crash | sudden deep drop |
| Dead Cat Bounce | fake small recovery |
| Rug Pull | scam exit by project |
| Ape In | jumping into trade recklessly |
| Shitcoin | low-quality crypto |
| Altcoin | any crypto besides Bitcoin |
| Fiat | government money like USD |
| DYOR | do your own research |
| Tokenomics | token economic structure |
| Gas Fees | transaction costs |
| Airdrop | free token distribution |
| Staking | locking coins for rewards |
| Yield Farming | earning from providing liquidity |
| DeFi | decentralized finance platforms |
| LP (Liquidity Provider) | adds liquidity to pools |
| Impermanent Loss | loss from providing liquidity |
| Farming | earning rewards through staking |
| Layer 1 | main blockchains like ETH |
| Layer 2 | scalability solutions like Arbitrum |
| Vesting | gradual token unlocking |
| Unlocks | release of locked tokens |
| Halving | reward cut in Bitcoin mining |
| Hard Fork | blockchain split |
| Soft Fork | blockchain upgrade |
| Gas War | competing for low fees |
| Whale Watching | tracking big traders |
| Token Burn | permanent token destruction |
| Smart Contract | blockchain self-executing code |
| DAO | decentralized autonomous organization |
| Stablecoin | crypto pegged to fiat |
| Wrapped Token | tokenized version of asset |
| Cold Wallet | offline crypto storage |
| Hot Wallet | online crypto wallet |
| Paper Wallet | printed keys |
| Dust | tiny leftover crypto amounts |
| Mining | verifying transactions for rewards |
| Validator | approves blockchain transactions |
| Sharding | blockchain split into parts |
| Ape Season | period of reckless buying |
| Flippening | ETH surpassing BTC idea |
| Stonks | meme version of stocks |
| Boomer Coin | old, boring crypto |
| Gas Guzzler | high transaction cost token |
| Degen | reckless trader |
| Exit Scam | project stealing investors’ money |
| Money Printer | printing lots of money (inflation slang) |
| Fear Index | market fear meter |
| Greed Index | market greed meter |
| Sniper Bot | auto-buying bot at launch |
| Honeypot | fake trap project |
| Whale Dump | big holder sells off |
| NFT Flip | buying and selling NFTs fast |
| V-Shaped Recovery | fast price comeback |
| Golden Cross | bullish moving average crossover |
| Death Cross | bearish moving average crossover |
