Glossary

General Trading Terms

Bid / Ask

• Bid – highest price a buyer is willing to pay.

• Ask – lowest price a seller is willing to accept.

• The difference is the spread.

Spread

The gap between bid and ask.

• Tight spread – high liquidity, low slippage.

• Wide spread – low liquidity, more expensive market orders.

Market Order / Limit Order

• Market order – executes immediately at the best available price.

• Limit order – executes only at your specified price or better. May not fill if price never reaches your level.

DeFi And On-Chain Terms

AMM (Automated Market Maker)

A decentralized exchange mechanism where users trade against pools instead of directly against other traders. Uses formulas (e.g., constant product x*y = k). Nad DEX spot uses an AMM for pooled liquidity.

LP (Liquidity Provider)

A user who deposits tokens into a pool, enabling trading and earning a share of fees.

Smart Contract

Self-executing code on a blockchain. Nad DEX trading, liquidity, and perps are all governed by smart contracts on Monad.

Gas

The fee paid to validators to process transactions. On Monad, MON is used for gas. Monad aims for low fees and fast confirmation.

Slippage

The difference between the expected and actual execution price of a trade. Caused by volatility and limited liquidity.

Price Impact

How much your trade moves the market price by consuming liquidity. Large trades relative to pool size have higher price impact.

Wallet

A software or hardware tool that stores your private keys and allows you to sign transactions. Examples: Rabby, Phantom, MetaMask, OKX Wallet.