This glossary explains common terms you may encounter while trading perpetual contracts on Bayse.
Term | Meaning |
Perpetual Contract | A leveraged contract that tracks the price of an underlying asset without an expiry date. |
Underlying Asset | The asset whose price the contract follows, such as Bitcoin or gold. |
Long Position | A trade that aims to profit if the asset price increases. |
Short Position | A trade that aims to profit if the asset price decreases. |
Leverage | A multiplier that increases your market exposure using borrowed capital. |
Margin | The funds committed as collateral to support a position. |
Initial Margin | The minimum amount required to open a position. |
Maintenance Margin | The minimum equity required to keep a position open. |
Position Size (Notional) | The total value of your trade after applying leverage. |
Liquidation | The automatic closure of a position that no longer meets the required margin. |
Liquidation Price | The estimated market price at which liquidation may occur. |
Funding | Periodic payments exchanged between Long and Short traders. |
Funding Rate | The rate used to calculate funding payments. |
Mark Price | The reference price used for unrealised P&L and liquidation calculations. |
Index Price | The estimated market price of the underlying asset from external sources. |
Last Price | The most recent traded price on the order book. |
Realised P&L | Profit or loss from a position that has been closed. |
Unrealised P&L | Profit or loss on an open position that continues to change with market prices. |
Insurance Fund | A reserve used to help cover losses during extreme market conditions. |
Auto-Deleveraging (ADL) | A last-resort mechanism used to maintain market stability during exceptional market events. |