TradeReply Education Center
Your go-to resource for understanding key financial terms and concepts.
INITIAL EXCHANGE OFFERING (IEO)
Initial exchange offering (IEO) is a type of token sale administered by a cryptocurrency exchange on behalf of the project.
INITIAL PUBLIC OFFERING (IPO)
Initial public offering (IPO) is the process by which a private company becomes publicly traded by offering its shares for sale to the general public.
INITIAL STAKE POOL OFFERING (ISPO)
Initial Stake Pool Offering (ISPO) is a fundraising mechanism where investors delegate their stakes to a stake pool to support a project.
INTEREST
Interest is the total cost incurred for borrowing funds, including margin interest (cost of borrowing on margin) and accrued interest (unpaid obligations), and any other interest-related expenses charged by brokers.
INTEREST COVERAGE RATIO
Interest Coverage Ratio measures a company’s ability to cover interest expenses using EBIT, highlighting financial resilience.
INTEREST RATE
Interest rate is the amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.
INVESTMENT PERCENTAGE
Investment Percentage reflects the proportion of account capital allocated, giving traders a relative measure of their capital commitment and its role in their overall portfolio.
INVESTMENT VALUE
Investment Value reflects the total monetary amount allocated, giving traders a tangible measure of their capital commitment and its role in their overall portfolio.
KURTOSIS OF RETURNS
Kurtosis Of Returns indicates the extremity or "tailedness" of the return distribution.
KYC (KNOW YOUR CUSTOMER)
KYC (Know Your Customer) is a process used by financial institutions to verify the identity of their clients to prevent fraud and money laundering.
LAGGING INDICATOR
Lagging indicator is a measurable economic factor that changes only after the economy has begun to follow a particular pattern or trend.
LARGEST LOSS
Largest Loss represents the greatest monetary loss incurred in a transaction, trade, or portfolio, highlighting peak downside risk.
LARGEST WIN
Largest Win represents the highest monetary profit achieved in a transaction, trade, or portfolio, providing insights into peak performance.
LEADING INDICATOR
Leading indicator is a measurable economic factor that changes before the economy starts to follow a particular pattern or trend.
LEARNING AND IMPROVEMENT METRICS
Learning and Improvement Metrics evaluate a trader's ongoing development and adaptation by tracking knowledge acquisition, skill enhancement, and performance improvements over time.
LEDGER
Ledger is a book or other collection of financial accounts, used in blockchain to record transactions.
LEVERAGE EFFECTIVENESS
Leverage Effectiveness evaluates how leverage amplifies or degrades returns in trades.
LEVERAGE FACTOR
Leverage Factor is the use of borrowed capital to increase the potential return of an investment, expressed as a ratio. It amplifies both potential gains and risks, requiring careful management to avoid excessive exposure.
LEVERAGED BUYOUT (LBO)
Leveraged buyout (LBO) is the acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition.
LIABILITIES
Liabilities are obligations such as margin debt, interest, short sale proceeds, loaned funds, broker fees, and margin calls. They reduce account equity and influence the net liquidation value of a trading account.
LIGHTNING NETWORK
Lightning Network is a second-layer protocol on the Bitcoin blockchain for fast and low-cost transactions.
LIQUID ASSETS
Liquid assets are assets that can be easily converted into cash with little impact on their value.
LIQUIDATION
Liquidation is the process of bringing a business to an end and distributing its assets to claimants.
