Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Due diligence
The process of investigating and analysing a company or investment opportunity before making a decision to invest.
Dump
In crypto markets, a dump occurs when a large volume of selling occurs rapidly, causing the price of an asset to fall significantly in a short period. It can happen organically, with sentiment shifting suddenly.
But the term is most often used to describe deliberate or coordinated selling, most infamously in pump-and-dump schemes. Here, a group artificially inflates a token’s price through hype and coordinated buying, and then sells their holdings into the ensuing demand, leaving late buyers holding a collapsing asset.
Dumps can also happen when one big holder, sometimes known as a whale, sells a huge position into a thin market, where there isn’t enough buying activity to soak up the volume without the price falling rapidly lower.
Example: A little-known token is heavily advertised across social media over the weekend. Retail shoppers jumped in, pushing the price up 400% in 48 hours. Early holders will start selling into the enthusiasm on Monday morning.
Within hours, the price has given up most of its gains, trading volume dries up, and the late-arriving purchasers are left nursing large losses with no visible way out.
Durable Goods Orders
Durable Goods Orders is a monthly US economic report measuring the value of new orders received by manufacturers for goods that will last three years or more. These goods include airplanes, machinery, appliances, and defense equipment. These are big-ticket expenditures that corporations and governments are making a serious commitment to, and the data is viewed as a proxy for confidence in the economic forecast.
Strong orders indicate businesses are expanding and investing. Weak orders mean they are pulling back and waiting. The headline number can be very variable month-to-month, largely because aircraft orders are huge and lumpy – one big Boeing deal can sway the whole amount.
As such, analysts tend to pay more attention to the ex-transportation and core capital goods orders numbers, which remove the noise and give a cleaner read on underlying company investment.
Example: A month of considerably higher durable goods orders, spurred by a spike in core capital goods, usually lifts equity markets and the dollar; it implies that corporations are investing with confidence. A disappointing result, especially in core orders, raises concerns that the economic upswing is losing steam.
Duration
The measure of a bond’s sensitivity to changes in interest rates.
Dust Transaction
A dust transaction is an amount of cryptocurrency so tiny that it is essentially valueless. It’s too tiny to spend, since the transaction fee required to transmit it would exceed its value. The name derives from the idea of digital dust, the minuscule crumbs left behind in a wallet that you can’t realistically do anything with.
Dust collects from small changes in transactions, airdrops, or fractional amounts remaining after trades. Dust is not only an annoyance, but also a privacy issue.
Some malicious actors intentionally distribute small amounts to wallets, a tactic called dusting, to track and associate addresses when the recipient later attempts to consolidate or spend the crumbs alongside other funds. Trusted exchanges and wallets have built ways to convert or consolidate dust holdings.
Example: After months of activity, a trader discovers multiple minor balances lingering across their exchange account; fractions of various tokens, worth less than a cent each. None of them may be withdrawn, as they would be completely eaten up by network costs.
Some exchanges allow you to convert this dust into that exchange’s native token. So, at least you can get something out of those leftover balances.
DXY$Y
DXY($Y) is a gauge of the value of the dollar against a basket of six major currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The euro dominates the basket at approximately 57 percent, meaning that DXY is highly sensitive to EUR/USD moves and should not be mistaken for a fully global measure of dollar strength.
It was developed in 1973 when the Bretton Woods system failed, and floating exchange rates became the order of the day. The starting point was 100; anything above 100 indicates the dollar is stronger than initially, while anything below 100 indicates it is weaker.
DXY is the shorthand for dollar direction that traders, macro funds, and policymakers follow, despite their understanding of its limitations. An increase in DXY is likely to put pressure on dollar-priced commodities and on emerging market currencies with dollar-priced debt.
Example: When the Federal Reserve embarked on its aggressive cycle of rate-hiking in 2022, DXY shot up to around 95 and then above 114 without the Fed directly targeting any of those outcomes.
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