Crypto and trading terms explained
Bob explains
The market is full of jargon, but you don’t have to become an expert. Below are the terms you’ll run into at LazyEye and in the market, short and in plain language.
- Return
- How much your stake changes in value, in percent, up or down. +2% means €100 is now worth €102; at -2% it’s €98. So a return can also be negative.
- Win rate
- The share of your closed trades that ended in profit. If the bot closes 10 trades and 7 are profitable, the win rate is 70%. It says nothing about how big those wins or losses were.
- Average return
- The average outcome per closed trade. One number that sums up many trades.
- Drawdown
- A temporary dip from an earlier high. It is part of the market and something we account for in advance, not a malfunction.
- Position
- A holding in a single coin that the bot keeps to sell later at a higher price. While it is open it is an open position; once the bot sells again it is a closed position and the result, profit or loss, is locked in.
- Underwater
- A position that is in the red at the moment but still open. The loss is still unrealized; profit or loss only becomes final when the position closes.
- Realized / unrealized
- Unrealized is the profit or loss on a position that is still open: it exists on paper and can still change. Realized is the result after the position closes; then it is locked in.
- Winning streak
- A run of trades that closed in profit one after another.
- Market cap
- The total value of a coin: price times the number of coins in circulation. A measure of how big a coin is.
- Volume
- How much of a coin was traded in a given period, usually over 24 hours. High volume means a coin is actively bought and sold.
- Volatility
- How strongly a price moves up and down. With high volatility the price can rise or fall sharply in a short time; with low volatility it stays calmer.
- Long & short
- Long is profiting from a rising price; short is the opposite, profiting from a falling price. We are long-only.
- Fear & Greed Index
- An independent gauge of market sentiment on a scale from 0 (extreme fear) to 100 (extreme greed). It combines things like volatility, volume and price momentum into one number. It reflects the mood of the market, not where the price is headed.See the live meter →
Past results are no guarantee for the future. Trading carries risk.