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Crypto, trading and market making terms from the Motion Trade glossary. Each definition explains the term in plain language and links to related guides.

Adaptive Market Making

A dynamic market-making approach that adjusts liquidity, spreads, and inventory in real time based on market volatility and order flow.

Airdrop

A free distribution of tokens to users, often used for marketing or rewarding community members.

Algorithm

A set of rules or instructions used by computers to perform calculations, process data, or make decisions (e.g., mining or trading logic).

Altcoin

Any cryptocurrency other than Bitcoin. Examples include Ethereum, Cardano, and Solana.

AMM (Automated Market Maker)

A smart contract-based system that enables decentralized trading by using liquidity pools instead of traditional order books.

Anti-Dumping

Mechanisms or rules designed to prevent large-scale token sell-offs that could crash the market price.

API (Application Programming Interface)

A software interface that allows applications to interact or exchange data, commonly used to connect trading bots or analytics tools to exchanges.

APR (Annual Percentage Rate)

The yearly rate of return earned on an investment, excluding compound interest.

APY (Annual Percentage Yield)

The effective annual rate of return that includes the effect of compounding interest.

Arbitrage

A trading strategy that profits from price differences of the same asset on different exchanges or markets.

Ask Price

The lowest price at which a seller is willing to sell an asset.