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.
Web Trader MT5
H
Hash Rate
The combined computational power of all miners on a Proof of Work blockchain. Measured in hashes per second. The main indicator of network security for Bitcoin is the hash rate: the higher it is, the more expensive and in fact impossible it is to make a 51% attack, seize control of more than half of the computing power of the network.
During profitable mining, more miners deploy hardware to earn block rewards and increase the hash rate. When rewards are reduced or energy costs increase relative to coin prices, the hash rate decreases. The prolonged declines suggest that miners are capitulating by turning off their rigs at a loss.
Hash rate data is tracked as a proxy for miner sentiment. A rising hash rate suggests confidence in future profitability. A falling hash rate may precede the selling of coin reserves to cover operating costs by miners.
Example: Bitcoin network hash rate falls sharply as big price drop pushes marginal miners offline. The remaining miners get a proportionally larger share of block rewards. The network difficulty adjusts downward at the next epoch, which reduces the amount of computation required per block making mining profitable again for surviving miners, and showing the protocol’s self-correcting equilibrium mechanism operating exactly as intended.
Hawk/hawkish
A hawkish central banker, analyst, or policymaker is one who is more concerned with the inflation floor than growth and employment and thus prefers higher rates and tighter monetary policy, willing to trade some slow growth for price stability. Doves are on the other side: more interested in employment, less sensitive to lower rates.
There are degrees of Hawkishness. A modestly hawkish statement conveys caution and readiness to act, but not immediately. If the central bank pivots in an aggressively hawkish direction, in a few moments you could see the bond, the currency and the equity markets repricing, all at once, in a way that is different from what they had expected.
Some market participants monitor individual central bankers and gauge their preferences as hawks or doves to figure out which way they are going to vote, and how a committee’s makeup will affect the policy signal.
Example: In a speech, the Federal Reserve Chair hints at higher inflation numbers and that further rate hikes are possible. The markets see it as hawkish, as the Treasury yields, the dollar’s strength against the major currencies, and equity indices’ drops in value are all following the same shift in communication, not a policy change.
Head and shoulders
A bearish reversal pattern that forms when a stock’s price rises to a peak and then falls, followed by a second rise to a higher peak, and then falls again.
Head fake
A false signal that leads traders to believe that a particular trend is emerging in the market.
Hedge
Hedging is a risk management strategy that involves adjusting asset positions to minimise potential losses from price fluctuations, often using futures contracts, options, or other financial instruments.
Hedge fund
An advanced, private investment fund managed by professionals for wealthy investors, aiming to profit in any market condition, typically with a minimum one-year holding period.
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