A lot of expressions in articles I write, are as if I am talking to a colleague from the same area of expertise. Which is of course not a case in most of the cases. That is why I have this article, that explains every not-usual word, verbal form or abbreviation from my articles. Explanatory notes are in categories, descriptions are short, if you need something more detailed, try wikipedia.
P.a. – per annum, interest gained in one year (%).
P2P – peer to peer, system of exchange between users. In our case, you are not investing your capital to a bank or institution, but straight to user and his loan. More people are investing in one loan.
APR – annual percentage rate. This is the number, which should bother the borrower the most. Not his interest rate. This number contains all of the fees and other stuff you should pay along the interest and principal.
Ponzi – scheme of paying the investors interest from deposits of other investors into system. There is no real product and there is no more trading going on. This scam scheme continues, until there is enough money in the system, or if the depositing slows down to a bigger extent.
HYIP – high yield investment program, investing program on Ponzi principle and providing high returns with short life expectancy.
Cryptocurrency – encrypted anonymous currency mainly in the internet world. More complicated to explain, main principle is that this currency is decentralized and no one can control its quantity in circulation. It is made by mining and is worldwide. The most known are Bitcoin, Litecoin, Ethereum and so on. More here. Video with good information is here.
Fork – dividing of crypto chain into two. There is new crypto made, more information here.
Buyback guarantee, Payback guarantee – buying back principle of loan in default (not paid fro more than 30, 60 or 90 days) with provider, which guarantees it. Almost no risk investment to a loan. In some cases there is also interest and late fees paid.
Forex, stock exchange:
Forex – currency stock exchange, foreign exchange market with world currencies and their exchange rates. Also some of non-currencies, like gold, silver and so on.
PAMM – percent allocation management module – it is managed account mostly used in forex. You are not managing your own money, but you have a manager investing in forex for you. He gets a commission for doing so. However, you have a control of your own finances, you can withdraw and move them as you wish according to your own strategy.
Timeframe – one candle on graph representing one time frame, for example on timeframe 4H, one candle is 4 hours, timeframe graphs are usually – tick, 1m, 5m, 15m, 30m, 1h, 4h, 1d, 1w, 1m, 1y.
Equity – account value at given time. It includes all open positions and free funds.
Drawdown (DD) – usually in %. Shows maximum decline in funds on the account in history.
Spread – it is simply one or couple of pips, which you have to get over before you are on break even. It is difference between buy and sell prices, that is why you see two lines on MT4 graphs. Sometimes spread can reach zero, that is good for you if you are scalping.
Scalping, scalp – very short and quick trades, usually only for couple of seconds. Mostly executed by a programe or EA.
Intraday – longer trades than scalping. They should begin and end in one trading day.
Swing – long term trades, usually in a couple of weeks, can be even longer. Using higher time frames and bigger trends.
Aggressive strategy – a lot of trades, high risk of lose, bigger DDs, potential high return in shorter period of time.
Conservative strategy – opposite of aggressive strategy, low risk, lower return, low DD, long period of time, investment for month, maybe years.