Basics of Trading and Finance (Part 26) : Trading and Finance Terminology : F (101-115)
Intro
IntroAs a moderator of the Tron Fan Club community, I regularly write various tutorials on crypto blockchain and Tron related matters. The main purpose of these tutorials is to make our new users aware of these topics. In continuation of that I am writing tutorials on trading and finance. Hope you can easily learn some details of trading and finance through this tutorial series.
Trading is not so easy but not so tough as well. If you don't know much about it, don’t worry. I bring you simple tutorials to help you understand trading basics step by step. In this part I shall define some important trading terms starting with the letter "F."
Faucet
A faucet is like a free giveaway site for crypto. It lets you claim tiny amounts of coins by completing simple tasks or solving captchas. For example, a Bitcoin faucet might give you 0.0001 BTC just for clicking a button. These faucets are good for beginners to learn how wallets work.Federal Reserve
The Federal Reserve, or Fed, is like the main money manager in the U.S. It controls interest rates and the money supply. If inflation is high, the Fed raises interest rates to slow spending and stabilize the economy. It also helps in keeping the banks stable during financial crises.Fiat
Fiat money is the regular currency like dollars, euros, or takas. It has value because the government says so, not because it’s backed by gold. This is brutal true.Fibonacci Retracement
This is a tool traders use to predict where prices might reverse during up or down trends. It’s based on Fibonacci numbers. Like if Bitcoin drops 38.2% from its peak and bounces back, traders may call it a retracement. Many traders use this tool to find key buying or selling levels.Financial Instrument
Think of this as a fancy name for things you can invest in or trade. Stocks, bonds, crypto and even futures are financial instruments.Financial Market
It’s a place where people buy and sell financial instruments. Some financial markets are the stock market, crypto exchanges, forex market etc. Binance is a crypto financial market. All the markets connect buyers and sellers efficiently.Fish
In crypto, a fish is a small investor with only a little money invested. Let give an example on this. If someone buys just $50 worth of Bitcoin, they’re considered a fish. This is huge. Fishes often follow the big players in the market.Fixed Cost
This is an expense that stays the same no matter how much you produce or sell. The monthly rent for a factory is a fixed cost. Even if production stops, you still need to pay the rent.FOMO (Fear of Missing Out)
It’s when investors buy into an asset because they’re afraid of missing profits. For example, if Bitcoin suddenly jumps 10%, many people might buy out of FOMO without proper research. FOMO often leads to emotional and risky decisions.Forex (Foreign Exchange)
Forex is where people trade currencies, like exchanging dollars for euros. For example, if you think the euro will rise against the dollar, you can buy euros on the forex market. Forex is the largest financial market in the world by trading volume.Fork
A fork happens when a blockchain splits into two versions. Like for example, Bitcoin Cash was created after a fork of Bitcoin. Forks often happen due to disagreements among developers or communities.Forward
A forward is a private agreement to buy or sell an asset at a specific price in the future. For example, a coffee farmer might sign a forward to sell coffee beans for $5 per pound next year. Unlike futures, forwards are not traded on exchanges.FUD (Fear, Uncertainty, Doubt)
This refers to negative news or rumors that cause panic in the market. For instance, if someone says "Bitcoin is getting banned," it might cause FUD even if it's false. Investors should learn to filter out FUD from reliable facts.Fundamental Analysis
This is when investors study the value of an asset by looking at its real-world factors, like company performance or market demand. It is helpful for taking trading and investment decision.Future
A future is an agreement to buy or sell an asset at a fixed price on a set date. For example, you might agree today to buy Bitcoin for $40,000 in 3 months, no matter its market price then. Futures are commonly used for hedging against price changes.
These were some important terms in trading and crypto starting with "F." Learning them will help you trade more confidently. Thanks.
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