Reference
Trading
The language of markets, defined plainly — the terms our coverage uses and what they actually mean.
L
- Leverage
- Using borrowed money to increase the size of a position relative to the capital committed. Ten-times leverage turns a 1% move in the asset into roughly a 10% move in the account.
- Liquidation
- The forced closing of a leveraged position when its collateral no longer covers losses. On crypto derivatives venues this is automatic and can happen within seconds.
O
- Order Book
- The live list of outstanding buy and sell orders at each price, showing how much would have to be bought or sold to move the price.
S
- Slippage
- The difference between the price expected when an order is placed and the price at which it actually fills. It grows with order size, thin liquidity and fast-moving markets.