Glossary

Glossary

Definitions of frequently used crypto trading terms, with practical operational notes.

Arbitrage

strategy

Trading that exploits price differences between identical or highly correlated instruments. Theoretically risk-free, but in practice 'risk-neutral' due to remaining non-price risks

Funding Rate

execution

On crypto perpetual futures, the periodic payment exchanged between long and short holders to keep the perpetual price tracking the spot price

Perpetual Futures

instrument

Crypto futures contracts with no expiry, designed to track spot prices through funding rates and traded at high leverage on major exchanges