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Financial Glossary Plain explanations

Terms, without the jargon.

Short explanations of the macro, market and crypto terms that show up in the essays and the bulletin. Filter to find one.

Market

Cash Flow

The cash moving in and out of a company over a given period. Not the same as profit: accounting profit can be positive while cash flow is negative. That's where "no cash flow" comes from.

Macro

Yield Curve

A plot of bond yields across maturities. Normally long-term > short-term. When it inverts, it has historically been a recession warning.

Macro

Inverted Curve

When the 2-year yield rises above the 10-year. It signals the market expects near-term rate cuts or a slowdown, and it has led most recent recessions.

Market

VIX

The 30-day expected-volatility index derived from S&P 500 options. The "fear index" — the higher it climbs, the greater the market stress. Below 20 is calm, above 30 is tense.

Market

DXY

The dollar's index against six major currencies. A strong dollar (104+) typically weighs on commodities and emerging markets.

Crypto

Fear & Greed

An index that scores crypto-market sentiment from 0 to 100. 0–25 is extreme fear, 75+ extreme greed. Often used as a contrarian signal.

Crypto

Coinbase Premium

The BTC price gap between Coinbase and Binance. Positive = US institutional buying pressure; negative = retail-driven or institutional outflow.

Crypto

BTC Dominance

Bitcoin's share of total crypto market cap. A rise is usually read as a "flight from altcoins to BTC," a fall as an "altseason" signal.

Crypto

DeFi

Decentralized Finance — lending, swapping and yield protocols that run on smart contracts with no intermediary. Code instead of a bank.

Macro

PMI

Purchasing Managers' Index. Above 50 is expansion, below is contraction. The ISM Manufacturing PMI is a leading recession indicator.

Macro

Basis Point (bps)

One hundredth of a percentage point. 25 bps = 0.25%. Rate and bond moves are quoted in bps.

Macro

Quantitative Tightening

A central bank shrinking its balance sheet — letting bonds roll off at maturity and draining liquidity from the market. The opposite of QE.

Market

Smart Money

Institutional, informed capital — funds, banks, the "smart" players. Their flows often turn before retail does.

Macro

Oil Intensity

The oil consumed per unit of GDP. In 1973 it took ~1 barrel per $1,000 of GDP; today ~0.43. Why the same price shock does less damage now.

Market

Funding Rate

The periodic payment between longs and shorts on perpetual crypto contracts. Positive = longs dominate (leveraged optimism).