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Glossary
Plain definitions of the trading terms used on this site.
| Term | Meaning |
|---|---|
| Perp | A perpetual future: a contract that follows an asset's price with no expiry date |
| Long / short | Long profits when the price rises; short profits when it falls |
| Leverage | How much position a dollar of collateral controls. At 3x, $100 controls $300 |
| Collateral | The money backing your positions |
| Notional | The dollar value of a position: size times price |
| Mark price | The reference price used to value positions |
| Funding | A recurring payment between longs and shorts that keeps a perp near the asset's price |
| Basis point | One hundredth of a percent |
| Spread | The gap between the best buy and sell prices |
| Stop-loss | An exit that closes a position when the price moves against it |
| Take-profit | An exit that closes part of a position at a profit target |
| Trailing stop | A stop that follows the price in your favour |
| Drawdown | The drop from a peak in account value |
| Equity | Account value including unrealized profit and loss |
| Liquidation | A forced close when equity falls under maintenance margin |
| ATR | Average true range: a measure of how much a market moves |
| RSI | Relative strength index: a 0 to 100 momentum reading |
| VWAP | Volume-weighted average price |
| R | One unit of risk: the distance from entry to stop. 2R is twice that in profit |
| Keeper | The platform process that watches and fires exits, independently of the model |
| Receipt | The public record of one decision |
Nothing here is investment advice.