Total Notional Position as a multiple of Total Account Margin.
Every cryptocurrency that is not Bitcoin is considered an Altcoin. There are currently more than 5,000 altcoins in existence.
An API is used to develop applications and allows different software applications to interact with one another. A blockchain API may be used to develop decentralized P2P applications or to build new payment infrastructure, which will allow an application to accept Bitcoin or other crypto. At EQUOS, we offer multiple API’s for maximum utility to enable developers and trading software suites to integrate with our platform.
When a trader is "ashdraked," it means that he or she has lost all his or her invested capital while shorting Bitcoin. The term comes from when a successful Romanian trader under the pseudonym Lord Ashdrake shorted BTC and lost all his invested capital.
Initial Margin is the minimum amount of collateral required to place a leveraged trade. Available Margin reflects the amount of collateral a trader has available to place new trades at a given moment in time.
This is an indicator based on a moving average of price range expansion, usually over a 14-day period. Being non-directional, it is used in conjunction with Negative and Positive Directional indicators to determine the strength of trends, whether positive or negative. The indicator ranges from 0-100 with a figure above 25, citing a strong trend in most asset classes.
Created on the Bitcoin Blockchain, BCH aims to be a peer-to-peer electronic cash system focused on fast payments, micro fees, privacy, and a high transaction capacity (big blocks). BCH shares the same market cap as BTC of 21 million and is the 9th largest cryptocurrency by market capitalization.
This indicator is made up of an upper and lower band set two standard deviations away from the 20-day SMA. Bollinger Bands are believed to be an accurate indicator of volatility displayed by the tightening and widening of the distance between them. If the bands are wider, the market is thought to be more volatile, while narrower bands indicate greater stability in the market. This means they can be used to identify areas of dynamic support and resistance as well as be extrapolated to find specific support and resistance price levels.
BTC (Bitcoin) is a digital currency created in January 2009 following the housing market crash. It follows the ideas set out in a whitepaper by Satoshi Nakamoto.1 The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
A sudden rebound/temporary recovery in asset prices, after a steep fall. It is usually relatively small and short-lived and driven by traders closing out short positions, or bottom-fishing. Usually seen in a bear market, it is followed by the continuation of the downtrend.
Diamond Hands is a term used to describe a trader that continues to hold an asset for the end goal despite potential risk, headwinds, and losses.
ETH perpetuals are a perpetual future based on the underlying Index Price of Ether, derived from a number of exchanges.
The Ethereum blockchain is a decentralized, open-sourced blockchain that offers smart contracts, which are contracts that are self-executing through code that states the agreements relevant parties must meet.
The FATF was established in 1989 by the Group of Seven (G7) leading industrialized nations to prevent financial terrorism and money laundering at both national and international levels. The body sets international standards and seeks to bring about national legislative and regulatory reforms in these areas.
A fork happens when a blockchain splits and a separate branch is developed from the blockchain. This occurs when there is a governing software update, meaning the community decides there needs to be a split between the chains or in the case of a hack.
The minimum amount of USDC required to open any new position.
The amount of capital required to open any new position is also referred to as the Initial Margin. To open a larger sized position requires a relatively larger amount of Initial Margin than to open a smaller sized position. A trader may choose at any time to increase the balance in their margin account to exceed the Initial Margin requirement. Increasing the margin balance would reduce the trader’s leverage.
The ratio between your margin balance and the notional exposure of your portfolio.
On EQUOS traders have the option to trade perpetual futures with leverage. For cryptocurrency futures, leverage trading is actually more similar to margin trading. On EQUOS the derivatives products, such as our BTC Perpetual future, are not leveraged. However, traders have the option to fund each dollar of notional exposure with a smaller amount of capital, called margin or collateral. For example, if you are using 5x leverage, your notional exposure is 5x the amount you have put down as funding. In other words, you are funding 1/5th of your trade with margin.
On EQUOS, the amount of leverage available to trade depends on your position size - the larger the position you have, the less amount of leverage you are allowed. Conversely, the smaller your position is, the larger the amount of leverage you are allowed.
On EQUOS traders have the option to partly fund the notional of their perpetual trades. In other words, a trader can have a notional exposure that is a multiple higher than the cash used to place the trade. This is referred to as leverage. Margin, also called collateral, is the amount that a trader has funded their account to trade with.
When a position is forced to be closed out because insufficient margin remains in the trader’s account to keep the position open.
EQUOS has unique features and functionality explicitly dedicated to managing liquidation orders. When the position has been unwound, the trader is charged a liquidation fee. If there is any margin left in the account after liquidation and the payment of the liquidation fee, this will be returned to the trader.
A mainnet is a fully developed and functioning blockchain protocol.
The amount of capital used to fund a trade. Perpetuals offer traders the ability to trade on margin, rather than having to fund the full notional of the trade. By using margin, the trader has the ability to put down only part of the notional in margin, making your trade more capital efficient.
The minimum amount of USDC equivalent notional required to avoid forced liquidation. If the Total Account Margin falls below the Margin Liquidation Trigger, the account’s positions will get liquidated.
To avoid liquidation, your account needs to have a minimum amount of margin, this value is called the Margin Liquidation Trigger. When your Total Account Margin reaches the level of the Margin Liquidation Trigger, your account will start to get liquidated. Specifically, an account is flagged for liquidation when the Total Account Margin falls below the Margin Liquidation Trigger. At this point the liquidation engine takes over the position, and will try to unwind the position at the best available price.
This is a short-term indicator aiming to identify changes in price momentum by collecting data from different moving averages. Composed of a MACD line, signal line, and histogram, its utility lies in the ability to signal the strength of a trend and the inferred buy and sell signals.
NFT stands for Non-Fungible Token. An NFT is a unique and rare token. For the most part, NFTs can only be bought and sold as a whole. NFTs, unlike cryptocurrencies, are not interchangeable and have gained in popularity recently, particularly in the realms of crypto-collectibles, crypto-gaming, and crypto-art.
The notional value, often shortened to notional, is the total value of a position. For example, a position of 2 BTC Perpetual futures where one BTC Perpetual future is priced at 10,000 USDC will have a notional of 20,000 USDC.
P&L stands for Profit & Loss, which can be both realized and unrealized. Unrealized P&L can be viewed as profits or losses on paper. Realized P&L are the profits or losses reflected in your account. In traditional markets, P&L is unrealized when the price of an underlying asset changes after a trader has opened a position, but before the trader has closed their position. On EQUOS, P&L for open perpetual futures positions is always unrealized - P&L is only realized when the position is closed.
P2P stands for Peer-to-Peer. A Peer-to-Peer Electronic Cash System is the description Satoshi Nakamoto gave Bitcoin in its whitepaper. It means that there are no intermediaries (such as banks or governments) in any aspect of Bitcoin transactions, and allows online payments to be sent directly from one party to another without going through a financial institution.
Unlike Dated Futures, a Perpetual Future does not have a fixed expiry date, allowing traders to hold a long or a short position for as long as they like. Its price is based on an underlying Index Price, derived from a number of different exchanges. Through Perpetual Futures traders can place a trade against an asset’s performance even if they do not own it.
In crypto, the term rekt refers to taking a big loss when trading. Derived from the word "wrecked," getting rekt implicates total financial loss.
This is an indicator assessing the momentum of assets to help gauge whether they are overbought or oversold. The calculation produces a figure between 0-109. In general, an asset is said to be in overbought territory when the RSI is near or above 70, and in oversold territory when near or below 30, although these levels can vary between asset classes.
SegWit is a protocol that reorganizes the data on the blockchain through signatures (Witnesses) to allow for more transactions to be stored in a single block, thereby increasing scalability.
A public market in which cryptocurrencies are traded for immediate settlement. It contrasts with a futures market, in which settlement is due at a later date. One of the most notable features of a cryptocurrency spot market is that settlement happens instantly. As soon as an equivalent bid and ask offer is placed, the trade is immediately executed.
A stablecoin is a form of cryptocurrency whose value is pegged to an underlying asset. A stablecoin can be pegged to a basket of assets, a fiat currency, commodities such as gold, or another cryptocurrency.
Technical indicators are rules based on the analysis of previous trading patterns and predict future price movements.
USDT is the largest stablecoin by market capitalization and is collateralized by the dollar. Tether claims that for every USDT in circulation, they hold $1 in their reserves to peg its value. While USDT is supposed to mirror the dollar, it does experience minimal fluctuations in price.
The Ichimoku Cloud is a collection of technical indicators that show market support and resistance levels, momentum, and trend direction.
To the Moon is an expression crypto traders use to describe an asset's price shooting up (or an aspiration that it do so) in a short period of time.
Total USDC equivalent notional of all assets available for margin, including any unrealized P&L, less any capital required for open non-margin (spot) orders.
Not all assets that are in your portfolio, may necessarily be eligible to be used as margin. The USDC equivalent notional of all assets that are eligible to be used for margin, including any unrealized P&L and less any capital required for non-margin (spot) trades, is your Total Account Margin. As long as the Total Account Margin is higher than the Initial Margin requirement, a trader is able to continue to send orders. As soon as the Total Account Margin falls below the Initial Margin requirement, the trader can no longer send orders unless they reduce their notional position.
The travel rule is a policy that requires financial institutions to disclose information related to asset transfers to verify the origin of the funds for anti-money laundering purposes.
USDC is one of the largest stablecoins in terms of market capitalisation and usage, and is pegged to the US dollar. It was launched in September 2018 as a joint effort between Circle and Coinbase. USDC is a major participant in the stablecoin market facilitating all sorts of money flow and use-cases, as of Dec 2020, around 3.2B USDC is circulating in the market.
A Wei is 1e18 of an Ether (ETH). It is the smallest denomination of the asset.
The point where the total account margin is fully depleted. An account that gets liquidated is charged a liquidation fee, which is taken from the account's margin balance. The Zero Price is adjusted to reflect the liquidation fee to ensure sufficient funds remain in the account to pay this fee upon liquidation.