Glossary Finance & Markets
Leverage
Using borrowed money to increase exposure. It multiplies gains and losses equally, and forced selling by leveraged holders is what turns ordinary declines into sharp ones.
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A demand to add funds when a leveraged position moves against you. Fail to meet it…
Valuation
An estimate of what a business is worth, usually derived from earnings, revenue or comparable companies.…
Mining
Competing to add the next block to a proof-of-work blockchain by burning computing power on a…
Market capitalisation
Share price multiplied by shares outstanding: what the market says a company is worth in total.…