Leverage
The use of borrowed funds to increase the size of a trading position. Leverage multiplies both potential profit and potential losses — a high-risk tool.
See also
Order book
A list of all open buy and sell orders for an asset on an exchange, sorted by price. It shows real-time supply and demand.
Limit order
An order to buy or sell at a specific price or better. It only executes once the market reaches that price.
Market order
An order to buy or sell an asset immediately at the best price currently available in the market.
Liquidation
The forced closure of a leveraged trading position by the exchange when losses approach the size of the deposited collateral. It results in losing part or all of the funds invested.
Rug pull
A scam in which a project's creators suddenly withdraw all liquidity or dump their tokens, crashing the price and leaving investors with worthless holdings.
P2P
Peer-to-peer — a direct cryptocurrency exchange between two users, often for fiat money, without a centralized intermediary handling the trade itself.