Perp trading glossary
Plain-language definitions of the metrics that matter for crypto perpetual-futures trading — each with the formula, a worked example, and the calculator or guide it connects to.
R-multiple states a trade's result as a multiple of what you risked: a +2R win returns twice your risk, a full stop-out is −1R.
MFE is the best unrealized profit a trade ever showed; MAE is the worst drawdown it reached — the path your closed PnL hides.
Funding is a periodic cash transfer between longs and shorts that pins a perpetual to spot — a cost you pay every interval you hold, win or lose.
Risk of ruin is the probability a positive-edge strategy still blows up from variance — too many losses in a row, sized too aggressively.
The liquidation price is where your loss consumes nearly all posted margin and the exchange force-closes the position — plus a liquidation fee.