> For the complete documentation index, see [llms.txt](https://docs.ashswap.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ashswap.io/getting-started/understand-ashperp/ashperp-terms.md).

# AshPerp Terms

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[Borrowing Fee](/getting-started/understand-ashperp/ashperp-terms/borrowing-fee.md)
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[Spread](/getting-started/understand-ashperp/ashperp-terms/spread.md)
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<table><thead><tr><th>Terms</th><th>Explanation</th><th data-hidden></th></tr></thead><tbody><tr><td><strong>Market Order</strong></td><td>An order to buy or sell a perpetual contract at the current market price, executed immediately.</td><td></td></tr><tr><td><strong>Limit Order</strong></td><td>An order to buy or sell a perpetual contract at a specific price or better. It is only executed when the market reaches the specified price.</td><td></td></tr><tr><td><strong>Open Interest (OI)</strong></td><td><p></p><p>Open interest is a critical metric that helps traders and analysts gauge market activity and sentiment. It represents the total number of outstanding contracts that have been entered into but not yet closed or settled by an offsetting trade. In other words, open interest tells you how many active positions exist in the market.</p><ul><li>When a trader opens a new long position, it increases open interest by one.</li><li>When a trader opens a new short position, it also increases open interest by one.</li><li>When a trader closes an existing position (either long or short), it decreases open interest by one.</li></ul></td><td></td></tr><tr><td><strong>Liquidation</strong></td><td>When a trader's position is forcibly closed by the exchange due to insufficient margin to cover potential losses.</td><td></td></tr><tr><td><strong>Margin</strong></td><td>The collateral or initial deposit required to open and maintain a leveraged position in a perpetual contract.</td><td></td></tr><tr><td><strong>Leverage</strong></td><td>The use of borrowed funds to increase the size of a trading position, allowing traders to amplify potential profits or losses.</td><td></td></tr><tr><td><strong>Positions</strong></td><td><p></p><p>In perpetual trading, traders can take either long or short positions.</p><ul><li>A <strong>long position</strong> means a trader is buying the perpetual contract with the expectation that the underlying asset's price will rise, allowing them to profit.</li><li>A <strong>short position</strong> means a trader is selling the perpetual contract with the expectation that the underlying asset's price will fall, enabling them to profit.</li></ul></td><td></td></tr><tr><td><strong>TP/SL Order</strong></td><td><p></p><ul><li><strong>Take Profit Order:</strong> A predetermined price level at which a trader intends to automatically close a position to secure profits.</li><li><strong>Stop-Loss Order:</strong> A predetermined price level at which a trader intends to automatically close a position to limit losses.</li></ul></td><td></td></tr><tr><td><strong>Oracle</strong></td><td>A trusted source of external data, often used to provide price information for derivatives contracts on DEXs.</td><td></td></tr></tbody></table>