Trading essentials
Trading glossary
Understand the language of perpetual trading.
Clear definitions to help you navigate markets with confidence.
From fundamentals to market mechanics
Funding Rate
What is a funding rate in crypto perpetual futures? How longs and shorts exchange periodic payments to keep perps near spot.
Perpetual Futures
Definition of perpetual futures (perp swaps): leveraged contracts with no expiry that use funding to track spot.
Leverage
What leverage means in crypto perpetuals: notional exposure relative to margin, and how it affects risk.
Liquidation
Liquidation in perpetual trading: when margin is insufficient and the exchange closes the position.
Mark Price
Mark price in crypto derivatives: a fair-value index used for unrealized PnL and liquidations.
Open Interest
Open interest (OI): the total outstanding notional of open perpetual positions.
Maker
Maker orders and maker fees: providing liquidity to the order book.
Taker
Taker orders and taker fees: removing liquidity from the order book.
Self-Custody
Self-custody in DeFi trading: users control keys/collateral rather than depositing to a centralized custodian.
Basis
Basis in crypto perps: the difference between perpetual/futures price and spot, related to funding.