# Glossary ## General Trading Terms ### Bid / Ask * The bid is the highest price a buyer is willing to pay for an asset. * The ask is the lowest price a seller is willing to accept. * The difference between the two is the spread, which reflects market liquidity. ### Spread * The gap between the bid and ask price. * Tight spreads typically mean better liquidity and less slippage. Wider spreads can result in more expensive trades. ### Limit Order / Market Order * A market order executes instantly at the best available price. * A limit order lets you set the price you want to buy or sell at—but it may not fill if the market doesn’t hit your price. *** ## DeFi & Onchain Terms ### AMM (Automated Market Maker) * A smart contract-based system that allows users to swap tokens without relying on order books. * Trades are executed against liquidity pools instead of individual buyers/sellers. ### LP (Liquidity Provider) * A user who deposits tokens into an AMM pool to enable swaps. * LPs earn a portion of the swap fees based on how much liquidity they contribute. ### Smart Contract * Code deployed on-chain that runs automatically under specific conditions. * Monday Trade uses smart contracts to handle swaps, liquidity provision, and more without intermediaries. ### Gas * A small fee paid to execute transactions on the blockchain. * On Monad, gas fees are lower and execution is faster than on Ethereum. ### Slippage * The difference between the expected price of a trade and the price it actually executes at. * More common in volatile markets or low-liquidity tokens. ### Price Impact * The change in an asset’s price caused by your trade consuming available liquidity. * Price impact is a key part of slippage. ### Wallet (e.g. Rabby) * A browser extension or mobile app used to interact with DeFi protocols. * Rabby, Phantom, and other wallets let you sign transactions, swap tokens, and manage funds on Monday Trade. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.monday.trade/general/glossary.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.