Glossary - Key terms A-Z

Quick reference for every term you'll encounter trading on Markets. Each term links to its full explainer page where available.

A

Ask price

The lowest price a seller is willing to accept. When you buy at market, you pay the ask.

B

Basis

The difference between the perpetual price and the underlying spot/index price. Funding rates keep this close to zero.

Bid price

The highest price a buyer will pay. When you sell at market, you receive the bid.

Bid-ask spread

The gap between bid and ask. Tighter spreads = better liquidity = cheaper to trade.

C

Cross margin
A margin mode where your entire account balance backs all open positions. Higher risk — one trade can affect others. See cross margin.

D

Delta

How much your position value changes for a $1 move in the underlying. A $1,000 position at 1× has a delta of ~$10 per 1% move.

E

Entry price

The price at which you opened your position. Your P&L is calculated relative to this.

F

Funding rate
A small periodic payment exchanged between long and short position holders every hour. Keeps perpetual prices anchored to real asset prices.

• Positive rate = Longs pay Shorts (bullish market)
• Negative rate = Shorts pay Longs (bearish market)

G

Going long

Opening a position that profits when the asset price rises. You believe the price is going up.

Going short

Opening a position that profits when the asset price falls. You believe the price is going down.

H

HIP-3

Hyperliquid Improvement Proposal 3 — the framework that allows third parties like Kinetiq to deploy custom perpetual markets on Hyperliquid's infrastructure.

Hyperliquid

The high-performance Layer 1 blockchain that powers Markets. Provides sub-second finality, deep liquidity, and an on-chain orderbook.

I

Index price

The reference price of the underlying asset (e.g. the actual Tesla stock price). Used to calculate funding rates and mark prices.

Isolated Margin

A margin mode where each position's risk is contained to its own deposit. The safest approach for most traders. Recommended for beginners. See Leverage & Liquidation.

K

KNTQ

Kinetiq's platform token. Staking KNTQ unlocks fee discounts on Markets (10% at Tier 1, up to 30% at Tier 5).

kmHYPE

Kinetiq's Liquid Staking Token for HYPE. Used to community-fund Markets via crowdfunding.

L

Leverage

A multiplier that lets you control a larger position than your deposit. 10× leverage = $100 deposit controls a $1,000 position. Amplifies both gains and losses.

Limit order

An order to buy or sell at a specific price — only executes if the market reaches your price.

Liquidation

The automatic closure of a position when losses have consumed your margin. Prevents negative balances. Always check your liquidation price before trading.

Liquidation price

The exact asset price at which your position will be automatically closed. Displayed on every open position.

Long

see Going long

M

Margin

The deposit you put up to open a leveraged position. Your "skin in the game" that absorbs losses before liquidation.

Mark price

The oracle-derived fair value price used to calculate unrealised P&L, liquidation price, and trigger Take Profit and Stop Loss orders. Calculated from institutional data sources (Kaiko) to prevent manipulation. Note: mark price and order book price can diverge briefly — take profit/stop loss triggers fire on mark price, but fills happen at the order book price.

Market order

An order that executes immediately at the best available price. Fast, but you pay the spread and can't control your exact fill — especially on thin markets. → Order Types →

O

Open interest

The total value of all open positions on a given market. Higher open interest = more active market.

Oracle price

The external reference price fed into Markets from institutional data providers (Kaiko). Used to calculate mark price and funding rates.

P

P&L (profit and loss)

Your unrealised or realised gain/loss on a position. Unrealised = position still open. Realised = position closed.

Perpetual

A derivative contract that tracks an asset's price with no expiration date. The primary trading instrument on Markets.

Position size

The total notional value of your trade (deposit × leverage). A $100 deposit at 5× = $500 position size.

S

Scale order

An order type that automatically splits your trade across a price range, filling at multiple levels. Useful for dollar-cost averaging into or out of a position with reduced market impact.

Short → see going short

Slippage

The difference between your expected fill price and your actual fill price. Most common with market orders in low-liquidity markets or during fast-moving price spikes. On thin markets, slippage on a Take Profit Market order can be significant even if the trigger price was hit.

Stop loss

An order that automatically closes your position if price reaches a defined level — cuts losses before they reach liquidation. Available as stop market (fills immediately at market) or stop limit (fills only at your specified price, may not fill in fast moves).

Stop limit

A stop order that becomes a limit order when triggered — you control the fill price, but there's no guarantee of execution if price moves through your level too quickly.

Stop market

A stop order that becomes a market order when triggered — guaranteed to fill, but at whatever price the book offers at trigger time.

Spot price

The current real-world market price of an underlying asset (e.g. actual Tesla stock price on Nasdaq).

T

Take profit

An order that automatically closes your position when price reaches your profit target. Available as two types:

• Take profit market — triggers on mark price, fills immediately at market. Fill price is not guaranteed to match the trigger price — on thin markets it can differ significantly.
• Take profit limit — triggers on mark price, fills only at your specified price or better. Price-certain but may not fill if price reverts quickly. → Order Types →

TWAP (Time-Weighted Average Price) order

Splits your trade into equal chunks executed at regular intervals over a set time period. Minimises slippage and market impact for larger position sizes. → Order Types →

U

USDH

The primary stablecoin on Markets. All positions are margined and settled in USDH. Pegged to $1 USD.

Unrealised P&L

Your current gain or loss on an open position that hasn't been closed yet.

W

Wallet

A Web3 wallet (MetaMask, Rabby, etc.) used to connect to Markets and hold your funds. Markets is non-custodial — your wallet, your funds.

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