Administrative fees
Charges incurred for administrative services provided by a financial institution, typically applied to managed trading accounts for services like account maintenance and reporting
Learn more in our glossary
Our glossary is your handy guide to essential terms and jargon related to blockchain and cryptocurrency.
A
Alpha and beta
Alpha is a measure of an investment's performance relative to a benchmark, reflecting the excess return achieved by the investment manager through skill or strategy. By contrast, beta represents the sensitivity of an asset's returns to movements in the overall market. A beta greater than 1 indicates higher volatility compared to the market, while less than 1 signifies lower volatility.
Anti-money laundering (AML)
Anti-money laundering (AML) refers to regulations and procedures designed to prevent the process of illegally concealing the origins of money obtained through criminal activities. In the context of digital asset trading, adherence to AML guidelines and Know Your Customer (KYC) policies is essential for maintaining legal compliance and safeguarding investments from illicit financial activities.
Artificial intelligence
AI entails computer systems simulating human intelligence. It is important in trading for analyzing vast datasets, making informed predictions (such as using historical data to forecast price movements), and executing trades automatically.
B
Bear markets
Bear markets are periods in the financial markets characterized by declining prices across various asset classes. They are typically accompanied by pessimism and a general expectation of further losses.
Bell curve
Also known as ‘normal distribution,’ a bell curve represents a symmetrical spread of data around the mean. For traders, plotting the distribution of returns on a graph can reveal the likelihood of profit or loss within a trading strategy.
Benchmarks
Standard reference points that provide a baseline for comparison when evaluating the performance of investments, portfolios, or strategies.
Bitcoin
Bitcoin is a decentralized digital currency that was introduced in 2009 and pioneered peer-to-peer transactions without the need for intermediaries like banks. As the first cryptocurrency to enter the market, Bitcoin revolutionized the concept of digital value exchange and sparked the growth of the digital asset market. In doing so, it also prompted increased scrutiny and attempts at regulation from governments and regulatory bodies worldwide.
C
CBDCs (central bank digital currencies)
Central bank digital currencies (CBDCs) are digital forms of national currencies issued by central banks. They enable electronic payments and transactions while maintaining the backing and stability of traditional fiat currencies.
Centralized exchanges (CEXs)
Centralized exchanges are platforms where users can buy, sell, and trade cryptocurrencies and other digital assets, with transactions facilitated by a central authority or intermediary.
Coincident indicators
Coincident indicators are economic indicators that move in tandem with the overall economy's business cycle, offering real-time insights into current economic conditions.
Compliance
Compliance describes adherence to laws, regulations, and standards set by regulatory bodies and governing authorities to ensure ethical and legal conduct within financial markets.