P

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

P2P (Peer-to-Peer)

Direct transactions between users without intermediaries.

Paper Trading

Simulated trading using virtual funds for practice without real financial risk.

Peg

A mechanism to fix the value of a cryptocurrency relative to another asset, such as a fiat currency.

PFP NFTs

Profile picture NFTs — digital avatar collections used as identity symbols across social media and Web3 platforms.

Play-to-Earn

A gaming model where players earn cryptocurrency or NFT rewards through gameplay and in-game achievements.

PnL (Profit and Loss)

A measure of how much money a trader or portfolio has gained or lost over a specific period.

PoS (Proof of Stake)

A consensus mechanism where validators are selected based on the amount of cryptocurrency they hold and stake.

PoW (Proof of Work)

A consensus mechanism requiring miners to solve cryptographic puzzles to validate transactions.

Price Discovery

The process of determining the market price of an asset based on supply and demand.

Price Impact

The change in asset price caused by executing a large trade order.

Price Stability

The ability of a token to maintain consistent pricing without extreme volatility or sudden swings.

Private Key

A secret alphanumeric code that allows access to cryptocurrency funds.

Protocol

The rules governing how blockchain networks operate.

Public Key

A cryptographic code that allows others to send cryptocurrency to a wallet.