> ## Documentation Index
> Fetch the complete documentation index at: https://docs.shuriken.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# Trading Glossary

> Common trading terms explained.

<Info>
  **Reference guide for trading terminology.**

  Understanding these concepts will help you use the Trading Terminal effectively.
</Info>

<AccordionGroup>
  <Accordion title="Market Cap">
    The total value of a token's supply. Calculated as: Price × Total Supply. Used to gauge a token's size relative to others.
  </Accordion>

  <Accordion title="Liquidity">
    The amount of funds available in a token's trading pools. Higher liquidity means you can buy or sell larger amounts without significantly moving the price.
  </Accordion>

  <Accordion title="Slippage">
    The difference between the expected price and the actual execution price. Occurs because prices can change between when you submit a trade and when it confirms.
  </Accordion>

  <Accordion title="Market Order">
    An order that executes immediately at the best available price. Prioritizes speed over price precision.
  </Accordion>

  <Accordion title="Limit Order">
    An order that only executes when price reaches your specified level. Waits for your target price.
  </Accordion>

  <Accordion title="Take Profit">
    A sell order placed above current price to automatically lock in gains when your target is reached.
  </Accordion>

  <Accordion title="Stop Loss">
    A sell order placed below current price to automatically exit if price drops to limit your losses.
  </Accordion>

  <Accordion title="MEV (Maximal Extractable Value)">
    Profit extracted by reordering blockchain transactions. Sandwich attacks are a common form where attackers front-run and back-run trades.
  </Accordion>

  <Accordion title="Priority Fee / Gas">
    Fee paid to validators to process your transaction. Higher fees typically result in faster confirmation.
  </Accordion>

  <Accordion title="DEX (Decentralized Exchange)">
    A trading platform that operates without a central authority, using smart contracts to facilitate trades.
  </Accordion>

  <Accordion title="PNL (Profit and Loss)">
    The gain or loss on a position. Calculated as current value minus your purchase cost.
  </Accordion>
</AccordionGroup>