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Glossary
Terms You Need to Know
Going Long - Refers to buying shares of an index with the belief the price will go up and you will make returns on the price appreciation.
Going short - The oppositie to going long, going short means you expect the price to go lower. Going short allows you to make returns on the decline in price of the index.
xAsset (aka synthetic asset) - the digital cousin of a real world item which follows its price movement
Weighted Baskets - refers to a group of cultural assets that are bundled together where each xAssets represents different proportions of the "recipe".
Floating Exposure - Dynamic exposure to price that is dependent on the amount of liquidity (money available) in the market
Leverage - the ability to amplify your gains (an also your loss). Think of it as hitting the turbo button in the direction you expect things to go
Index - a financial tool that is used mirror a certain markets behavior
Liquidity - the amount of money currently held in a market. This is important so that you can exit/close your position
Funding Rate - simply put, whoever is on the leading side of the market has to pay the weaker side a bit of money to keep things balanced
Last modified 6mo ago