📕Glossary

In this category, we will cover all the necessary theory and terminology you need to know to succeed and maximize the benefits of using ERKEScan. Understanding these key terms and concepts will help you navigate the platform more effectively and make informed trading decisions.

Key Terms and Definitions

1. Open Interest (OI): The total number of outstanding derivative contracts, such as options or futures, that have not been settled. Open interest is used to measure the flow of money into the market.

2. Volume: The total number of shares or contracts traded for a specific security during a given period. High volume indicates high interest in the security.

3. Volatility: A statistical measure of the dispersion of returns for a given security or market index. Higher volatility means higher risk and potential for price swings.

4. Ticks: The minimum upward or downward movement in the price of a security. In ERKEScan, ticks are used to measure price movements over different timeframes.

5. Vdelta: Short for Volume Delta, it measures the difference between buying and selling volume. A positive Vdelta indicates more buying pressure, while a negative Vdelta indicates more selling pressure.

6. Technical Indicators: Mathematical calculations based on the price, volume, or open interest of a security. Common indicators include moving averages, Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD).

7. Fundamental Analysis: A method of evaluating a security by analyzing financial data and economic indicators. This approach looks at factors such as earnings, revenue, and market conditions to determine the intrinsic value of a security.

8. Real-Time Alerts: Notifications sent instantly based on predefined criteria. These alerts help traders respond quickly to significant market movements.

9. Customizable Trading Strategies: Personalized trading plans that align with a trader's goals and risk tolerance. ERKEScan allows users to create, test, and manage their own strategies.

10. Spaghetti Charts: Visual representations of the top 10 leaderboard for tokens based on open interest change and price change. These charts help traders identify market leaders and potential opportunities.

11. Risk Management: The process of identifying, analyzing, and mitigating risks in trading. Proper risk management involves setting stop-loss orders, diversifying investments, and using tools like lotsize.io to calculate position sizes.

12. Backtesting: The process of testing a trading strategy using historical data to evaluate its performance. Backtesting helps traders refine their strategies before applying them in live trading.

13. API (Application Programming Interface): A set of rules and protocols for building and interacting with software applications. In trading, APIs allow users to connect their accounts to third-party platforms for automated trading and data retrieval.

14. Trading Bots: Automated software programs that execute trades based on predefined criteria. ERKEScan's upcoming feature will allow users to trade directly from the Telegram bot using their exchange API.

15. Sector Performance: Analysis of the performance of specific sectors, such as AI, DINO, MEME, L1, L2, and DEFI. Sector performance charts help traders identify which sectors are leading the market.

By familiarizing yourself with these terms and concepts, you will be better equipped to leverage the full potential of ERKEScan and make more informed trading decisions.