Glossary
Plain-language definitions for the terms used in our guides and calculator.
Perpetual future
A derivative intended to track an underlying market without the standard short dated expiry of a traditional future; terms vary by product.
Notional
The monetary size of the position's underlying exposure under the contract's specifications.
Margin
Collateral supporting a derivatives position. It is distinct from the position's notional exposure.
Funding rate
A rate used for periodic payments under a perpetual product's funding mechanism.
Basis point
One hundredth of one percentage point: 1 bp is 0.01%, and 10,000 bp is 100%.
Liquidation
A venue's process for reducing or closing exposure when its margin requirements are no longer satisfied.
Definitions are starting points. For product-specific terms, consult the original documentation linked in the guide.
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