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

# Trading fundamentals

Trading fundamentals explains the terms that appear across Terminal so you can choose order controls deliberately instead of guessing from labels.

Trading fundamentals explains the terms that appear across Proliquid so you can choose order controls deliberately instead of guessing from short labels.

## Markets and prices

A market is the instrument you are viewing or trading. In Terminal, tradable execution depends on the active account and markets supported by Hyperliquid, RISEx, Binance, Bybit, or OKX.

Last price is the most recent trade. Index / Oracle prices are exchange-level references used by the venue for margin, liquidation, and other calculations.

Use price references carefully:

* **Last price** helps you understand where the most recent trade happened.
* **Index / Oracle price** is used by the active exchange for exchange-level calculations.
* **Orderbook price** shows available liquidity at the bid and ask.

## Order behavior

A market-style action tries to execute immediately with a slippage guard. A limit action uses a price you choose.

Time in force controls how a limit behaves:

<table><thead><tr><th width="88">TIF</th><th>Meaning</th><th>Typical use</th></tr></thead><tbody><tr><td>GTC</td><td>Good till canceled. The order can rest until filled or canceled.</td><td>Passive entries and exits where waiting is acceptable.</td></tr><tr><td>IOC</td><td>Immediate or cancel. The unfilled part cancels right away.</td><td>Fast execution with a price limit.</td></tr><tr><td>ALO</td><td>Add liquidity only. Maker-only order that should not immediately take liquidity.</td><td>Maker-fee entries or exits when you do not want taker execution.</td></tr></tbody></table>

Reduce-only means the order should only decrease existing exposure. Use it for exits, not for opening or increasing a position.

## Sizing and risk terms

Base size is the amount of the asset. Quote value is the notional value, usually shown in dollars. TP means take profit, SL means stop loss, and both are exit helpers.

Leverage changes how much position exposure your margin supports. Margin mode, maintenance requirements, and liquidation behavior are exchange mechanics.

Example: on `BTC/USDC`, a base size is measured in BTC, while notional is measured in USDC. A `$10,000` notional order is easier to compare across markets, while base size is easier to match to the exact asset amount.

## Funding and liquidation

Funding is a periodic payment between long and short perpetual positions. Liquidation is an exchange-driven risk event when margin no longer satisfies requirements.

Proliquid can help you monitor funding, risk estimates, balances, and positions, but exact calculations and exchange actions belong to the active venue. Use the relevant exchange documentation for authoritative rules.

## Trading mistakes to avoid

Do not treat app settings as exchange rules. When the question is about fees, liquidation, margin, or matching, check the relevant exchange documentation.

Before submitting an order, check the selected market, side, size, price, reduce-only state, TP / SL values, and max slippage. For Proliquid controls, continue with the [Trade form](/terminal-sections/trade-form.md), [Orderbook](/terminal-sections/orderbook.md), and individual [order type](/order-types/market-orders.md) pages.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://docs.proliquid.xyz/getting-started/trading-fundamentals.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.