Trading glossary

P/B Ratio P/B Ratio Definition: The P/B Ratio (Price-to-Book Ratio) is a valuation metric calculated as Market Price per Share divided by Book Value per Share — or equivalently market capitalization divided ... Paper Trading Paper Trading Definition: Paper trading is the practice of executing simulated trades with virtual capital to test strategies and develop skills without risking real money. The term originated from... Paper Wallet Paper Wallet Definition: A paper wallet is a physical document — typically a printed sheet — containing a cryptocurrency's public address (for receiving funds) and private key (for spending funds),... Parabolic SAR Parabolic SAR Definition: The Parabolic SAR (Stop and Reverse) is a trend-following technical indicator developed by J. Welles Wilder Jr. and introduced in his 1978 book "New Concepts in Technical ... Passive Income Passive Income Definition: Passive Income is earnings derived from investments, properties, or business activities that require minimal ongoing effort to maintain — including dividends, interest, r... Payment Schedule Payment Schedule Definition: A payment schedule is a structured plan specifying when, how much, and in what form payments will be made under a financial obligation — whether a loan, bond, lease, or... Peer-to-Peer (P2P) Peer-to-Peer (P2P) Definition: Peer-to-peer (P2P) describes a network or transaction model where participants interact directly with each other without a central intermediary — each participant is ... Pennant Pattern Pennant Pattern Definition: A Pennant is a short-term continuation chart pattern consisting of a sharp directional move (the "flagpole") followed by a brief consolidation with converging trendlines... Pepe (PEPE) Pepe Definition: Pepe (PEPE) is a meme cryptocurrency created in 2023 as homage to Pepe the Frog (internet meme character), similar to Dogecoin and Shiba Inu. PEPE is an ERC-20 token on Ethereum wi... Permissionless Blockchain Permissionless Blockchain Definition: A permissionless blockchain is a distributed ledger that lets any participant join, transact, and validate blocks without requiring approval from any central a... Perpetual Futures Perpetual Futures Definition: Perpetual futures are derivative contracts that allow leveraged speculation on an asset's price without expiration dates, using funding rate payments to keep the contr... Pip Pip Definition: A pip (percentage in point, or price interest point) is the standardised minimum unit of price movement in foreign exchange markets — typically the fourth decimal place (0.0001) for... Pivot Point Pivot Points Definition: Pivot Points are technical analysis indicators calculated from the previous period's high, low, and close prices to identify potential support and resistance levels for the... Play-to-Earn (P2E) Play-to-Earn Definition: Play-to-Earn (P2E) is a model in which players of a video game receive cryptocurrency or non-fungible tokens as rewards for in-game activity — completing quests, winning ba... Polkadot (DOT) Polkadot Definition: Polkadot is a multi-chain blockchain platform founded by Gavin Wood (co-founder of Ethereum) designed to connect independent blockchains ("parachains") into a unified ecosystem... Polygon (POL/MATIC) Polygon Definition: Polygon is a Layer 2 scaling solution for Ethereum using sidechains (parallel blockchains connected to Ethereum) to enable fast, cheap transactions. Polygon's native token is MA... Portfolio Portfolio Definition: A portfolio is the complete collection of financial assets held by an investor or institution — stocks, bonds, cash, real estate, cryptocurrencies, commodities, and any other ... Portfolio Investment Portfolio Investment Definition: Portfolio investment is the purchase of financial assets — stocks, bonds, ETFs, or other securities — purely for financial return, without seeking control or signif... Portfolio Rebalancing Portfolio Rebalancing Definition: Portfolio rebalancing is the systematic process of restoring target asset allocations after market movements cause weights to drift away from intended percentages,... Portfolio Theory Portfolio Theory Definition: Portfolio Theory (Modern Portfolio Theory, MPT) is a mathematical framework developed by Harry Markowitz in his 1952 paper "Portfolio Selection" — for which he won the ... Position Size Position Size Definition: Position size is the quantity of an asset or contracts held in a single trade, calculated to maintain consistent risk exposure across different setups and market condition... Position Trading Position Trading Definition: Position trading is a long-term trading style where positions are held for weeks, months, or years to capture major price trends and fundamental shifts. Position trader... Price Action Price Action Definition: Price action is a trading methodology that makes decisions based solely on the movement of an asset's price over time — reading candlestick patterns, support and resistance... Price Discovery Price Discovery Definition: Price discovery is the process by which financial markets determine the current price of an asset through the continuous interaction of buyers and sellers, incorporating... Price Signal Price Signal Definition: A price signal is the information conveyed by a market price about the supply, demand, and relative scarcity of a good, service, or asset — directing the allocation of reso... Private Blockchain Private Blockchain Definition: A private blockchain is a distributed ledger whose read access, write access, and validator set are all controlled by a single organisation or a closed consortium. It... Private Equity Private Equity Definition: Private Equity (PE) is investment capital deployed into private (non-public) companies — typically through leveraged buyouts (LBOs), growth equity, or distressed investin... Private Key Private Key Definition: A private key is a secret cryptographic number — a 256-bit integer in Bitcoin and Ethereum — that proves ownership of a cryptocurrency address and authorises the transfer of... Profit Margin Profit Margin Definition: Profit Margin is the percentage of revenue that becomes profit after deducting costs — calculated as Net Income ÷ Revenue × 100 — measuring overall business profitability ... Profit Taking Profit Taking Definition: Profit taking is the systematic practice of selling positions to realize gains after price appreciation, converting unrealized paper profits into actual cash returns. Effe... Projected Sales Projected Sales Definition: Projected sales (also called revenue projections or sales forecasts) are estimates of the amount of revenue a company expects to generate over a future period — typicall... Proof Of Attendance Protocol (POAP) POAP (Proof of Attendance Protocol) Definition: POAP is a blockchain-based system for issuing digital badges — non-fungible tokens (NFTs) — that verifiably prove a person attended or participated i... Proof of Authority (PoA) Proof of Authority (PoA) Definition: Proof of Authority is a blockchain consensus mechanism where pre-approved validators (typically known entities with verified identities) take turns producing bl... Proof of Stake (PoS) Proof of Stake (PoS) Definition: Proof of Stake is a blockchain consensus mechanism where network participants (validators) are selected to create new blocks based on the quantity of cryptocurrency... Proof of Work (PoW) Proof of Work (PoW) Definition: Proof of Work is a blockchain consensus mechanism that requires network participants (miners) to expend computational effort solving cryptographic puzzles in order t... Public Blockchain Public Blockchain Definition: A public blockchain is a distributed ledger that anyone can read, anyone can submit transactions to, and anyone can participate in validating, without permission from ... Public Key Public Key Definition: A Public Key is a cryptographic identifier derived mathematically from a private key through asymmetric (public-key) cryptography, designed to be shared openly while keeping ... Pump Pump Definition: A pump is a rapid, often artificial price increase in an asset driven by coordinated buying, social media attention, or promotional campaigns rather than fundamental developments. ... Pump and Dump Pump and Dump Definition: A pump and dump is a market manipulation scheme where promoters artificially inflate the price of an asset through misleading promotion (the "pump"), then sell their pre-a... Put Option Put Option Definition: A Put Option is a financial contract giving the buyer the right (but not the obligation) to sell an underlying asset at a predetermined strike price before or on the expirati...