The underlying determinant of a market trend which is known by a constant rise or fall in asset price.

Market momentum is a term that explains a stable price movement within a particular period. This stability may be caused by a variety of factors, but the focus is often on the continuing trend of the price. As a result, market momentums are more easily identified by market trends which directly refers to the fact that the price of a certain commodity continues to rise or fall, to the point that continued upward or downward price movement can be predicted ahead of time.

Expert traders look out for market momentums. Competently identifying these momentums allow traders to take advantage of them and make significant profits ahead of others.

A type of buy or sell order that relies on what is available in the market.

A market order is the instruction from traders to brokers in which what is to be bought or sold depends on what is available in the market or the order book. This way, the trader is not offering to buy or sell something at a preferred price, but at the market price. In the same way, the quantity of assets to be traded have also been determined by the order book instead of the trader.

Market orders are useful in that they save time and any complicated decision-making. Even so, expert traders only use them rarely or when they think that the market is particularly favorable.

A standard for measuring the total value of stocks or assets with reference to how many are available or in circulation.

Market capitalization (market cap) is a standard metric in corporate finance used to describe the value of a company, stock, or asset. This metric is defined as the total value obtainable from adding up all available units of the stock (in the form of shares) and multiplying this total by the price of each share. In crypto space, market cap refers to the overall value of a cryptocurrency which is determined by adding up available supply and multiplying this total by the price of the coin.

Market cap is a very useful financial instrument used to ascertain the value of a company or crypto. Because Bitcoin constantly has a higher market cap compared to others, it is considered to be the most valuable cryptocurrency in the world.

Market Momentum

Previous term

Next term