Two things explain most of what confuses newcomers to digital-asset markets: how prices move, and how an order is actually filled. This section covers both in plain terms.
How these markets differ from what you may be used to
Digital-asset markets trade continuously, including weekends. There is no single central exchange, so the same asset can show slightly different prices in different places at the same moment. Depth of trading varies enormously between well-known assets and small ones, and that depth — liquidity — is what determines whether a sale moves the price against you.
The practical consequence is that price moves can be larger and faster than in markets with fixed hours and a single venue. That is the subject of volatility explained.
Guides in this section
- Cryptocurrency Volatility Explained — why prices move sharply, and how leverage magnifies the effect.
- Market Orders and Limit Orders Explained — speed versus price control, and where slippage comes from.
Terms worth knowing early
- Liquidity — how easily something can be bought or sold without moving its price.
- Spread — the gap between the best available buy price and sell price.
- Slippage — the difference between the price you expected and the price you received.
- Leverage — borrowed funds used to increase position size. It magnifies losses as well as gains.
Before you go further
Understanding the mechanics is not the same as being ready to commit money. Read the risk information, and if a provider has approached you, work through the questions to ask before depositing funds. Back to the Learning Centre.