Understanding Finance Concepts

Welcome to our website where we discuss various concepts related to finance and Nucoin.

Table of Contents

  1. Glossary
    1. Liquidity Pool (LP)
    2. Volume
    3. Candles
    4. Frozen
    5. Correlation
    6. Correlation Matrix
  2. Section 2
  3. Section 3

  1. Glossary #

    1. Liquidity Pool (LP) #

      2. In a liquidity pool (LP) with NCN (Nucoin) and BRL (Brazilian Real), the operation works based on the concept of constant product. Which means that the product of the quantities of NCN and BRL remains constant. When someone trades in the pool, they are swapping one asset for another at a price determined by the current ratio of NCN to BRL in the pool.

    2. Volume #

      3. Volume measures the amount that a financial asset changes hands during a given period of time.

    3. Candles #

      4. A candlestick chart is a type of financial chart that shows the price movement given a time interval. Each candle represent one period of time of negociation. The red one is called Bearish, meaning the price was in a downward trend. The green one is called Bullish, meaning the price was in a upward trend.

    4. Correlation #

      5. In finance and statistical analysis, correlation measures the degree of association between two variables. It quantifies the relationship between them, indicating whether they move in the same direction, move in opposite directions, or have no relationship at all.

      • If the correlation is negative, as the red line increases, blue line decreases, and vice versa.
      • If the correlation is positive, as the red line increases, blue line also increases, and vice versa.

      The visualization showcases two datasets generated with different correlation coefficients (ρ), one with a negative correlation and the other with a positive correlation.

    1. Frozen #