📚Glossary

Definition of key terms and concepts

Trading

Term	Definition
Long	A long position is established by buying an asset with the expectation that its value will rise, and the trader can then sell the asset at a higher price to realize a profit.
Short	A short position is established by borrowing an asset, selling it, and then buying it back at a lower price to return the borrowed asset and realize a profit.
Market order	A type of order that is executed immediately at the current market price. A market order does not specify a specific price, but instead is executed at the best available price in the market at the time the order is placed.
Limit order	A type of order that allows a trader to set a specific price at which they would like to buy or sell an asset. For long positions, limit price must be set below the market price, for short positions, limit price must be set above the market price
Stop Market order	A type of order that is used to automatically sell or buy an asset when it reaches a specific price level. For long positions, stop price must be above the market price, for short positions, limit price must be set below the market price
Leverage	The use of borrowed capital to increase the potential return of an investment. It allows users to increase their exposure to the market and trade larger positions than would be possible with their own funds alone.
TP	TP or Take Profit order is a type of advanced order that allows a trader to set a specific price at which their open position will automatically be closed for a profit.
SL	SL or Stop Loss order is a type of advanced order that allows a trader to set a specific price at which their open position will automatically be closed to limit losses.
Position Size	The amount of an asset that a trader holds in a single trade. A trader can adjust their position size to manage their risk exposure, and to align their trade with their overall investment strategy.
Position Interest	The fee charged for holding a leveraged long position overnight.
Entry Price	The price at which the trade is executed and the position is established.
Liquidation Price	The price at which a trader's leveraged position will be automatically closed by the platform in order to prevent further losses. This mechanism is put in place to protect the platform and its users from excessive losses in the event that the price of an asset moves in an unfavorable direction.
Unrealized P&L	The profit or loss on an open position that has not yet been closed.
Keepers	Keepers monitor asset prices to execute limit, stop limit, take profit, stop loss, and liquidation orders.

Term	Definition
Slippage	The difference between the expected price of a trade and the actual price at which the trade is executed. It occurs when market conditions change rapidly, causing the price of an asset to move before an order can be filled.
Funding Rate	A funding rate is put in place to motivate perpetual prices to be equal to spot prices through a funding rate system, in which those who are long on the contracts pay those who are short if the contracts are traded at a higher price than spot, and vice versa.
Rollover Fee	Rollover fees are used to simulate borrowing costs as the NAR platform provides synthetic leverage, and maintains solid risk management for the protocol.
Price Impact	The effect that a trade has on the market price of the asset being traded. A trade that involves a large quantity of shares can significantly move the market price, leading to a large price impact.
Spread	The difference between the bid price and the ask price.

Copy Trading

Vault	A secure storage system for holding and safeguarding assets. A vault typically offers higher levels of security and protection compared to a standard wallet.
Vault Period	The length of time during which an asset is stored in a secure vault.
Deposit Period	The length of time required for a deposit of funds to be credited to a trader's account.
Cooldown Period	A specific time frame during which certain trading activities are restricted or limited. This restriction is often put in place to prevent market manipulation, allow for a more stable trading environment, or protect the interests of investors.
Rollover Period	the time period during which an investment portfolio is rolled over or renewed.
AUM	AUM or Assets Under Management refers to the total value of assets that are being managed by a particular crypto asset manager, fund, or exchange.
P&L	P&L or Profit and Loss refers to the performance of a particular trade, investment, or overall portfolio.
ROI	ROI stands for "Return on Investment". It is the profit or loss made on an investment, expressed as a percentage of the initial investment.