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Terminology
Investment glossary.
Definitions for the terms we use on the platform and in our monthly memos.
AES-256
Industry-standard symmetric encryption algorithm. Uses a 256-bit key to make data unreadable. Practically unbreakable. Aurevia Tradex encrypts all client data with AES-256.
AML
Anti-Money-Laundering. Regulatory framework and procedures to prevent the laundering of illicit proceeds.
Attribution reporting
Detailed reporting that breaks down portfolio returns by individual contribution. Shows which position contributed how much at basis-point granularity.
Basis point (bps)
One-hundredth of a percentage point. 1 bps = 0.01%. Used in finance to denote small variations. 0.75% fee = 75 bps.
Drawdown
The maximum percentage a portfolio falls from its peak value to its current value. A key metric in risk management.
FATF
Financial Action Task Force. International body setting standards for the fight against money laundering and terrorism financing.
Forex / FX
Foreign Exchange. Currency transactions. The exchange of one currency for another. The world's most liquid market.
GDPR
General Data Protection Regulation. EU data protection legislation, in force since 2018.
ISO 27001
International standard for information security management systems. Certified by independent third parties on a three-year cycle.
KYC
Know Your Customer. The legal process by which a financial-service provider verifies the identity of its clients.
MiCA
Markets in Crypto-Assets. EU regulation of crypto-asset markets. In force since 2024.
MiFID II
Markets in Financial Instruments Directive II. EU regulation of financial markets. Standard for investor protection and transparency.
PEP
Politically Exposed Person. Individuals holding important political positions, subject to higher monitoring for money-laundering risk.
Prime broker
Large financial institution that provides a bundled service to hedge funds and institutional clients, including trade execution, clearing, custody and lending.
Reinforcement Learning
A type of machine learning. An agent learns from the consequences of its actions to achieve a goal. Our execution engine uses three concurrent RL models.
Slippage
The price difference between when an order is placed and when it is executed. Low slippage is good; high slippage is bad. Our average slippage is 1.8 bps.
SOC 2 Type II
Annual audit of service providers on security, availability and confidentiality. Type II specifically covers a 12-month period.
Spread
The difference between bid and ask price. A narrow spread = liquid market, a wide spread = illiquid market.
TLS 1.3
Transport Layer Security. The latest encryption protocol for data communication over the internet. All Aurevia Tradex traffic is encrypted with TLS 1.3.
TOTP
Time-based One-Time Password. A common method for 2FA. Applications like Google Authenticator use this protocol.
Volatility
Measures how much an asset's price fluctuates. High volatility = large price moves = higher risk.
WebAuthn
Web Authentication. A standard for authentication with hardware security keys (YubiKey, Titan etc.). Much more secure than SMS-based 2FA.