S | Glossary | FinchTrade

Secondary Market

The secondary market is a financial market where investors buy and sell securities they already own, such as stocks, bonds, and other financial instruments. Unlike the primary market, where new securities are issued and sold for the first time, the secondary market provides liquidity and enables price discovery for existing securities. It includes stock exchanges like the New York Stock Exchange (NYSE) and over-the-counter (OTC) markets. This market is crucial for investors looking to trade their assets and for maintaining the overall health and efficiency of the financial system.

Security Token Offering

A Security Token Offering (STO) is a fundraising method where digital tokens representing ownership in an asset or company are issued and sold to investors, typically regulated by securities laws.

Seed Phrase

A seed phrase, also known as a recovery phrase or mnemonic phrase, is a sequence of words generated by cryptocurrency wallets to provide access to the wallet's funds. It serves as a backup and recovery mechanism, allowing users to restore their wallet and access their digital assets if they lose their device or forget their password. The seed phrase is typically composed of 12, 18, or 24 words and must be kept secure and private, as anyone with access to it can control the associated funds.

Semantic Web

The Semantic Web is an extension of the current World Wide Web that aims to make internet data machine-readable and interoperable. By using standardized formats and languages such as RDF (Resource Description Framework) and OWL (Web Ontology Language), the Semantic Web enables data to be shared and reused across different applications, enterprises, and communities. This facilitates more intelligent and automated interactions between systems, enhancing the ability to find, integrate, and analyze information from diverse sources.

Series B Funding

Series B funding is a stage of investment in a startup or early-stage company that follows the initial Series A funding round. This phase typically involves larger amounts of capital and is aimed at scaling the business, expanding market reach, and enhancing product development. Investors in Series B funding often include venture capital firms, private equity investors, and sometimes strategic corporate partners.

Settlement risk

Settlement risk, also known as delivery risk or counterparty risk, refers to the possibility that one party in a financial transaction will fail to deliver the terms of a contract, such as the payment of funds or the delivery of securities, by the agreed-upon settlement date. This risk can arise in various financial markets, including foreign exchange, securities, and derivatives markets, and can lead to significant financial losses if not properly managed. Effective risk management strategies, such as using clearinghouses or implementing robust counterparty credit assessments, are essential to mitigate settlement risk.

Shitcoin

A "Shitcoin" is a derogatory term used in the cryptocurrency community to describe a digital currency that has little to no value or potential. These coins often lack a solid technological foundation, meaningful use case, or community support, and are typically seen as speculative investments or scams. The term is used to caution investors about the risks associated with such cryptocurrencies.

Sidechain

A sidechain is a secondary blockchain that operates independently but is attached to a main blockchain, often referred to as the parent chain. It allows for the transfer of assets and data between the two chains, enabling enhanced scalability, flexibility, and functionality. Sidechains can be used to test new features, improve transaction speeds, and reduce congestion on the main blockchain, all while maintaining a secure and decentralized environment.

Side Channel Attack

A Side Channel Attack is a type of security exploit that aims to gather information from the physical implementation of a computer system rather than targeting weaknesses in the implemented algorithms themselves. This can include monitoring power consumption, electromagnetic emissions, timing information, or even sound to infer sensitive data such as cryptographic keys. These attacks exploit the indirect information leakage that occurs during the normal operation of a system, making them a significant concern in the field of cybersecurity.

Smart Contract Audit

A Smart Contract Audit is a thorough examination of a blockchain-based contract's code to identify vulnerabilities, ensure compliance with standards, and verify its functionality and security.

Smart order router

A Smart Order Router (SOR) is an advanced trading technology used in financial markets to optimize the execution of orders. It intelligently directs orders to various trading venues, such as stock exchanges and dark pools, to achieve the best possible price, speed, and execution quality. By analyzing real-time market data and liquidity, an SOR ensures that trades are executed efficiently, minimizing costs and maximizing returns for investors. This technology is crucial for high-frequency trading and institutional investors who require precise and rapid order fulfillment.

Soft Cap

A soft cap is a flexible limit set during fundraising or token sales, indicating the minimum amount needed to proceed with a project, but allowing for additional funds to be raised beyond this threshold.

Soft Peg

A soft peg is an exchange rate policy where a currency's value is allowed to fluctuate within a narrow band around a fixed rate, providing some stability while permitting limited market-driven adjustments.

Software Stack

A software stack is a collection of software components that work together to support the execution of applications. It typically includes an operating system, middleware, runtime environments, databases, and application frameworks. Each layer in the stack builds upon the one below it, creating a cohesive and efficient environment for software development and deployment. Common examples include the LAMP stack (Linux, Apache, MySQL, PHP) and the MEAN stack (MongoDB, Express.js, Angular, Node.js). By using a well-defined software stack, developers can streamline the development process, ensure compatibility, and improve system performance.

Spot Market

The spot market, also known as the cash market, is a financial market where financial instruments or commodities are traded for immediate delivery and payment. Transactions in the spot market are typically settled "on the spot," meaning within a short period, usually two business days. This market contrasts with futures or forward markets, where the delivery of the asset occurs at a later date. Spot markets are commonly used for trading commodities like oil, gold, and agricultural products, as well as currencies and other financial instruments.

Spot Trading

Spot trading refers to the purchase or sale of a financial instrument, commodity, or asset for immediate delivery and payment on the spot date, which is typically two business days after the trade date. This type of trading is common in markets such as foreign exchange, commodities, and securities, where transactions are settled "on the spot" rather than at a future date.

Stacking Sats

Stacking Sats refers to the practice of accumulating small amounts of Bitcoin (satoshis) over time to build a larger holding.

Stagflation

Stagflation is an economic condition characterized by the simultaneous occurrence of stagnant economic growth, high unemployment, and high inflation. This unusual combination poses a significant challenge for policymakers, as traditional measures to combat inflation, such as tightening monetary policy, can further suppress economic growth and exacerbate unemployment. Stagflation was notably experienced in the 1970s, and it remains a complex and difficult issue for economists to address.

Supercycle

A supercycle is an extended period of strong growth in demand for commodities, often driven by structural changes in the global economy, leading to sustained high prices.

Sybil Attack

A Sybil Attack is a security threat where one entity creates multiple fake identities to gain disproportionate influence in a network.

Glossary