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Industry WIKI

Digital assets and currencies

Understand assets, networks and trading mechanics with sources you can check.

Trading basics

Bid–ask spread

The bid–ask spread (also bid–offer or bid/ask and buy/sell in the case of a market maker) is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale (ask) and an immediate purchase (bid) for stocks, futures contracts, options, or currency pairs in some auction scenario. The size of the bid–ask spread in a security is one m

Trading basics

Crypto-to-Crypto Trading: Trading Pairs and Order Basics

Crypto-to-crypto trading generally refers to the buying and selling between different crypto assets. This article introduces positioning, mechanisms, usage verification, and common misconceptions.

Trading basics

Exchange: Exchange Rates, Fees, and Received Amounts

An exchange is the process of acquiring one asset using another. This article introduces definition, mechanics, usage verification, and common misconceptions.

Finance

Market maker

A market maker or liquidity provider is a company or individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the difference, which is called the bid–ask spread or turn. This stabilizes the market, reducing price variation (volatility) by setting a trading price range for the asset.

Fiat currencies

Triangular arbitrage

Triangular arbitrage (also referred to as cross currency arbitrage or three-point arbitrage) is the act of exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market. A triangular arbitrage strategy involves three trades, exchanging the initial currency for a second, the second currency for a third, and the thi