Perp Trading with Cwallet | Crypto Trading Terms Every Beginner Must Know

Before you open your first perp position on Cwallet, learning a few essential trading terms will help you trade smarter, safer, and with confidence.

Perpetual futures can sound full of jargon—funding rates, mark price, liquidation, but you don't need to be intimidated. Learn the key terms first, and the mechanics become a lot clearer. With Cwallet's beginner-friendly tools, you'll see how these concepts map to the buttons you press and the risks you manage.

A very short refresher: what is a perp contract?

A perpetual futures (or "perp") is a contract that tracks the price of an asset (like BTC or ETH) but has no expiry date. Traders open long positions if they expect the price to rise, or short positions if they expect the price to fall. Perps use mechanisms like funding rates to keep the contract price close to the spot market.

♻️ Referral: Perp Trading with Cwallet | What Are Perpetual Futures Contracts? A Beginner's Guide

Must-know Trading Terms for Beginners

Long / Short

• Long: You profit if the asset price goes up.
• Short: You profit if the asset price goes down.

💡 Note: Direction and profit move opposite ways depending on whether you're long or short, don't confuse chart direction with gains.

Leverage

• What it is: Borrowing power that lets your margin control a bigger position (e.g., 10× means $100 margin → $1,000 exposure).
• Impact: Multiplies gains and losses.

💡 Note: Up to 40x on Cwallet, but recommend starting with low leverage, Cwallet caps and shows estimated liquidation risk to protect new traders.

Margin (Initial vs. Maintenance)

• Initial margin: Amount required to open a position.
• Maintenance margin: Minimum equity needed to keep it open.

💡 Note: If your account equity falls below maintenance margin, your position may be liquidated.

Funding Rate

• What it does: Small payments between longs and shorts paid periodically (not a platform fee).
• Sign: Positive funding → longs pay shorts; negative funding → shorts pay longs.

💡 Note: Over time, funding can eat into small profits if you ignore it.

Mark Price

• Definition: The reference price used to calculate unrealized PnL and trigger liquidations.
• Why it exists: Prevents manipulative trades from triggering unfair liquidations based on the last traded price.

💡 Note: Watching only the candle chart and not the mark price—this can lead to surprise liquidations.

Liquidation

• When it happens: If losses reduce your margin below the maintenance level.
• Result: Exchange closes (liquidates) the position to prevent further negative balance.

💡 Note: You'll see warnings and can enable partial close or risk-reduction features.

Take Profit (TP) / Stop Loss (SL)

• TP: Automatically close a position at a target profit.
• SL: Automatically close a position to limit losses.

❗️Note: They enforce discipline—essential for beginners.

Short practical tips for beginners

• Start small and use low leverage.
• Always set an SL or TP
• Check the funding rate if you plan to hold it for days.
• Watch the mark price for liquidation risk, not only the last traded price.
• Learn the whole "Perp Trading with Cwallet" series of articles before you open the first order.

Summary & Looking Ahead

You don't need to master every trading term in one day. Understanding the essentials already puts you miles ahead as you begin exploring perpetual futures.

With Cwallet's smooth perp-trading experience—clear order previews, intuitive leverage controls, built-in risk alerts, transparent fees, and fast execution, you can learn step by step without feeling overwhelmed.

In the next article, “How to Open Your First Order Step by Step,” we’ll walk you through the exact process of opening, managing, and closing a perp position on Cwallet, so you can confidently take your first trade.

Cwallet: Your Gateway to a New Era of Crypto Finance

Cwallet, more than a wallet, it's an all-in-one platform for secure crypto management and flexible trading.

Buy, swap, trade, earn, and spend 1,000+ cryptocurrencies across 60+ blockchains in one place. Spend your digital assets like cash with the Cozy Card, while tools like HR bulk management, mobile top-ups, and gift cards make everyday transactions smoother.

We are evolving into a comprehensive crypto finance hub. From Spot Trading, including Swap, Memecoins, and xStocks, to Futures Trading such as Perpetual Trading, 1001X, Trend Trade, and Market Battle, Cwallet supports different trading styles with clarity and control.

Plus, built-in IM keeps users connected with friends and informed directly within the trading experience.

Join millions reimagining what a crypto wallet can do. Stay cozy, trade smart, and explore the future of Web3 finance.

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Disclaimer

This content is strictly for informational and educational purposes only. It does not constitute financial, investment, legal, or tax advice, nor is it an offer or solicitation to buy, sell, or hold any digital asset. Crypto assets involve high volatility and risks, and their value can fluctuate greatly. Readers must be aware of and adhere to the relevant local laws and regulations concerning digital assets in their specific jurisdiction, as product availability may vary. All investment decisions must be based on your own research (DYOR) and risk assessment. Some content herein may be generated or assisted by artificial intelligence (AI) tools. The author and platform assume no liability for investment losses.