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FinchTrade
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Glossary

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Mainchain

Mainchain refers to the primary blockchain in a network, where the main ledger of transactions is maintained and validated.

Mainnet

Mainnet is the primary network where actual transactions occur on a blockchain, as opposed to testnet or other experimental networks.

Margin call

A margin call is a broker's demand for an investor to deposit additional funds or securities into their margin account to bring it up to the minimum required level. This occurs when the value of the securities in the account falls below a certain threshold, reducing the equity in the account and increasing the risk for the broker.

Margin trading

Margin trading is a financial practice where investors borrow funds from a broker to purchase securities, allowing them to buy more than they could with their available capital. This method amplifies potential gains but also increases the risk of significant losses, as the borrowed funds must be repaid with interest.

Market FOK order

A "Fill or Kill" (FOK) order is a type of market order used in trading that mandates the immediate execution of the entire order at the specified price or better. If the order cannot be completely filled right away, it is automatically canceled. This type of order is typically used by traders who want to ensure that they either get their entire order filled at the desired price or not at all, avoiding partial fills.

Market IOC order

A Market IOC (Immediate-Or-Cancel) order is a type of stock market order that instructs the broker to execute the trade immediately at the current market price. If the entire order cannot be filled instantly, any unfilled portion is canceled. This type of order is used by traders who prioritize speed and are willing to accept partial fills but do not want any delay in execution.

Market maker

A market maker is a financial intermediary or firm that actively buys and sells securities, such as stocks or bonds, to provide liquidity and facilitate smooth trading in financial markets. By continuously quoting both buy and sell prices, market makers help ensure that there is always a counterparty available for traders looking to execute transactions, thereby reducing price volatility and enhancing market efficiency. They earn profits through the bid-ask spread, which is the difference between the prices at which they buy and sell securities.

Market risk

Market risk refers to the potential for financial loss due to fluctuations in market prices, such as changes in stock prices, interest rates, currency exchange rates, and commodity prices. It is a key concern for investors, financial institutions, and businesses, as it can impact the value of investments and financial positions. Managing market risk involves strategies like diversification, hedging, and the use of financial instruments to mitigate potential adverse effects.

Marlowe

Marlowe is a domain-specific language designed for creating, testing, and deploying secure smart contracts focused on financial transactions. Tailored for financial institutions, Marlowe simplifies the development of contracts without requiring deep programming knowledge. It allows for formal verification to ensure contracts behave as expected, integrates with external data, and offers a sandbox environment for testing.

Mass Payout

Mass Payout refers to the process of distributing payments to a large number of recipients simultaneously. This method is commonly used by businesses and organizations to efficiently manage transactions such as payroll, affiliate commissions, vendor payments, or refunds.

Masternodes

Masternodes are specialized servers within a blockchain network that perform critical tasks beyond simple transaction validation. They help enhance the network's functionality by enabling features such as instant transactions, privacy enhancements, and decentralized governance.

Medium of exchange

A medium of exchange is an intermediary instrument or system used to facilitate the sale, purchase, or trade of goods and services between parties. It is widely accepted and recognized for its value, making transactions more efficient by eliminating the need for a direct barter system.

Memorandum Of Understanding (MOU)

A Memorandum of Understanding (MOU) is a formal but non-binding agreement between two or more parties that outlines the terms and details of a mutual understanding or collaboration. It serves as a preliminary step before a legally binding contract is drafted, specifying the intentions, roles, and responsibilities of each party involved.

Mempool

The mempool, short for memory pool, is a component of blockchain networks where unconfirmed transactions are stored before being added to a block.

Merchant Account

A merchant account is a type of bank account that allows businesses to accept and process electronic payment transactions, primarily from credit and debit cards. It acts as an intermediary between the business, the customer's bank, and the payment processor, facilitating the secure transfer of funds.

Merchant Account Provider

A Merchant Account Provider is a financial institution or service company that offers businesses the ability to accept credit and debit card payments. These providers facilitate the setup of merchant accounts, which are specialized bank accounts that allow businesses to process electronic payment transactions.

Merchant Category Code (MCC)

A Merchant Category Code (MCC) is a four-digit number used by credit card companies to classify businesses by the type of goods or services they provide. These codes help in processing transactions, determining interchange fees, and offering rewards or benefits specific to certain categories.

Merkle Tree

A Merkle Tree, also known as a hash tree, is a data structure used in computer science and cryptography to efficiently and securely verify the integrity of large sets of data. It organizes data into a tree-like structure where each leaf node represents a hash of a data block, and each non-leaf node is a hash of its child nodes. This hierarchical arrangement allows for quick and reliable verification of data integrity, making Merkle Trees essential in blockchain technology, distributed systems, and peer-to-peer networks.

Metcalfe’s Law

Metcalfe's Law is a principle in network theory that states the value of a network is proportional to the square of the number of its users. Formulated by Robert Metcalfe, the law suggests that as more users join a network, the number of potential connections increases exponentially, thereby significantly enhancing the network's overall value and utility. This concept is often applied to social networks, telecommunications, and other systems where connectivity is crucial.

Micro Cap

Micro Cap refers to companies with a market capitalization typically between $50 million and $300 million.

Micropayment

A micropayment is a financial transaction involving a very small sum of money, typically used for online services or digital content. These payments are often less than a dollar and are designed to facilitate the purchase of low-cost items such as articles, music tracks, or in-app features. Micropayments enable businesses to monetize content that might otherwise be offered for free, while providing consumers with a convenient way to access and pay for small-scale digital goods and services.

Microtransaction

A microtransaction is a small financial transaction conducted online, often used in video games and apps to purchase virtual goods or unlock additional features.

Mid Cap

Mid Cap refers to companies with a market capitalization (total market value of a company's outstanding shares) that falls between large-cap and small-cap companies. Typically, mid-cap companies have a market capitalization ranging from $2 billion to $10 billion. These companies are often considered to be in a growth phase, offering a balance between the stability of large-cap companies and the high growth potential of small-cap companies. Investing in mid-cap stocks can provide a mix of growth and stability, making them an attractive option for many investors.

Mimetic Theory

Mimetic Theory, developed by René Girard, posits that human behavior and culture are driven by imitation, leading to rivalry and conflict, which are resolved through scapegoating mechanisms.

Mineable

Mineable refers to the capability of a cryptocurrency to be created or obtained through the process of mining, which involves solving complex mathematical problems to validate transactions and secure the network.

Miners

In the context of cryptocurrency and blockchain technology, miners are individuals or entities that use computational power to validate and secure transactions on a blockchain network. They play a crucial role in maintaining the integrity and security of decentralized networks like Bitcoin, Ethereum (prior to its transition to proof of stake), and other cryptocurrencies that use a Proof of Work (PoW) consensus mechanism.

Minimum viable product (MVP)

A Minimum Viable Product (MVP) is a development strategy used by startups and businesses to introduce a new product to the market with the most essential features. The goal is to test the product's core functionality and gather user feedback quickly and cost-effectively.

Mining Farm

A mining farm is a facility housing numerous computers and specialized hardware to mine cryptocurrencies by solving complex mathematical problems, thereby validating transactions on a blockchain network.

Mining Rig

A mining rig is a specialized computer system designed for the purpose of mining cryptocurrencies. It typically consists of multiple high-performance graphics processing units (GPUs) or application-specific integrated circuits (ASICs) that work together to solve complex mathematical problems, validating transactions on a blockchain network. Mining rigs are optimized for efficiency and speed, often featuring advanced cooling systems and power supplies to handle the intense computational workload. They play a crucial role in securing blockchain networks and earning cryptocurrency rewards for their operators.

Minting

Minting refers to the process of creating new coins, tokens, or digital assets. In traditional finance, it involves producing physical currency, typically by a government or authorized entity. In the context of blockchain and cryptocurrencies, minting is the creation of new digital tokens or coins, often through mechanisms like proof of stake or smart contracts. This process is essential for introducing new assets into circulation and can also involve the validation and recording of transactions on a blockchain.

Mobile wallet

A mobile wallet is a digital application that allows users to store, manage, and use their financial information, such as credit and debit card details, on their smartphones or other mobile devices.

Monetary Authority of Singapore (MAS)

The Monetary Authority of Singapore (MAS) is Singapore's central bank and financial regulatory authority, responsible for overseeing the country's monetary policy, financial sector stability, and economic growth.

Money transmitter

A money transmitter is a financial service provider that facilitates the transfer of funds from one individual or entity to another. This can include services such as wire transfers, electronic funds transfers, and remittances. Money transmitters play a crucial role in enabling both domestic and international financial transactions, often serving as intermediaries between banks, businesses, and consumers.

Multi-level marketing (MLM)

Multi-level marketing (MLM) is a business strategy where individuals sell products or services directly to consumers and earn commissions not only on their sales but also on the sales made by people they recruit into the business.