Concepts
One idea at a time, explained in plain words and shown at work in a real week.
287 concepts, A to Z
Index priceWhat is an index price, and why do traders look at a combined spot reference instead of one exchange's quote?Information versus noiseWhen a market moves during the week, how can you tell whether that movement changes what is actually known?Intraday volatilityHow much does a market swing within the week, and why can a small weekly close hide those swings?Invalidation levelWhat is an invalidation level, and how does it turn a market view into something testable?KurtosisHow do we tell whether extreme price moves happen more often than a bell curve would predict?Lagging indicatorWhy do some measures confirm a market move only after most of it has already happened?Leading indicatorWhat does it mean when a measure is called a leading indicator, and how would you check whether it truly moves before price?Leverage and marginHow does a fast hour eat the cushion that stands between a leveraged position and forced closure?Leverage flushWhat is a leverage flush, and why does one sharp hour sometimes clear out a whole side of the market?Limit orderWhat is a limit order, and what does it guarantee and fail to guarantee in a wide-ranging market week?Limits of diversificationWhy can holdings that usually move differently all fall together in one stressful week?Liquidation cascadeWhen traders are forced out of leveraged positions, how can one wave of forced closures set off the next?Liquidation priceAt what price does an exchange automatically close a leveraged position, and why is that price a hard line for a trader?LiquidityWhen traders call a market liquid, what do they mean, and how much can this data really show?Liquidity and volatilityWhen does heavy trading go with wild price swings instead of steadying the market?Long squeezeWhy does a falling market sometimes drop even faster, because traders holding leveraged long positions are forced to sell?Look-ahead biasWhat goes wrong when a past decision, or a rule tested on past prices, is allowed to use information that was not available when the decision was made?Lookback windowWhy does the same market week look mild or extreme depending on how far back a measure reaches?Loss aversionWhy does a falling market feel far worse than an equal rise feels good, and how does that distort decisions?Low-volume driftWhat does it mean when a price drifts somewhere on thin trading, and how can you tell?Lower highs and lower lowsHow do traders describe a downtrend in plain terms, and what does that pattern suggest about control?Maintenance marginHow much collateral must a leveraged position keep on the table before the exchange forces it shut?Maker and takerWhat is the difference between placing an order that waits and one that trades immediately, and why does it matter for cost and execution?Margin callWhat happens when a leveraged position loses value, and why must a trader add collateral or be closed out?Margin of safetyHow much room should you keep between an estimate and the price you act on, so being wrong stays survivable?Market capitalisationWhat does a market's value actually measure, and why is it more than the price of one unit?Market depthWhat does market depth mean, and why can't candle data tell you how much sits waiting near the price?Market makerWho is on the other side of your trade, and how do they make money from it?Market orderWhat does it mean to trade at the best available price right now, and when is that price unpredictable?Market structure breakWhat does it mean when a market stops making higher highs and lows, and why does that shift how a move should be read?
Research notes on real market weeks, not investment advice. Sources: Binance spot BTCUSDT and ETHUSDT 1-hour candles and USD-M perpetual funding rates; weekly figures computed by WSTiger.