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FinchTrade
Digital asset liquidity provider of your choice

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Glossary

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Iceberg order

An iceberg order is a type of large trading order that is divided into smaller, more manageable chunks to conceal the true size of the order from the market. This technique is used to minimize the impact on the market price and to avoid alerting other traders to the presence of a large order. Only a small portion of the total order is visible in the order book at any given time, with the rest remaining hidden, much like the bulk of an iceberg beneath the surface of the water.

Impermanent Loss

Impermanent Loss refers to the temporary loss of funds experienced by liquidity providers in decentralized finance (DeFi) when the price of deposited assets changes compared to when they were deposited.

In-the-Money / Out-of-the-Money

"In-the-Money" (ITM) and "Out-of-the-Money" (OTM) are terms used in options trading to describe the intrinsic value of an option. An option is "In-the-Money" if exercising it would result in a profit. For a call option, this means the stock price is above the strike price; for a put option, the stock price is below the strike price. Conversely, an option is "Out-of-the-Money" if exercising it would not be profitable. For a call option, this means the stock price is below the strike price; for a put option, the stock price is above the strike price. These terms help traders assess the potential profitability and risk of their options positions.

Investment portfolio

An investment portfolio is a collection of financial assets such as stocks, bonds, mutual funds, and other securities held by an individual or institution. The primary goal of an investment portfolio is to diversify risk while aiming for a desired return on investment. By strategically allocating assets across various investment types and sectors, investors can balance potential gains with risk tolerance, time horizon, and financial objectives. Effective portfolio management involves regular monitoring and rebalancing to adapt to market conditions and personal financial goals.