📘 Crypto Glossary from #cryptoland_88
Topic of the Day: liquidity, funding, and orders — three terms that mark the beginning of a trader's journey.
#Binance #обучение #Глоссарий
🔹 1. Liquidity
This is the ability of an asset to be quickly bought or sold without significant loss in price.
The higher the liquidity, the easier it is to enter and exit a position.
💧 High liquidity = many buy/sell orders, narrow spread.
🛑 Low liquidity = harder to trade without slippage, sharp price jumps.
📌 Example: BTC/USDT — high liquidity pair. $ALPHA /$BNB — low liquidity.
🔹 2. Funding Rate
This is the fee between traders that maintains the balance between longs and shorts in the futures markets.
When the rate is positive, longs pay shorts.
When the rate is negative, the opposite is true — shorts pay longs.
💡 Monitoring funding helps to understand market sentiment: is the market overheated or not.
📌 Example: High funding on $DOGE may indicate that too many people are in long positions.
🔹 3. Orders: market and limit
🟢 Market Order — executed instantly at the best available price.
➡️ Used when speed is important.
🟡 Limit Order — executed only at a specified price or better.
➡️ Used when exact price is important and you are willing to wait.
📌 Example: Want to buy BTC strictly at $66,000? Set a limit. Ready to take "at market" — use market order.
🎯 Conclusion:
These three terms are fundamental to crypto trading. Understanding them will help you avoid losing money at the start.
Every day we cover 3 terms — so you can grow as a trader!
🔗 Save this glossary and subscribe to @Cryptoland_88 — tomorrow we will discuss how liquidation works and what margin is.
