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

# Trading Overview

> How perpetual futures work on Perpetra and what makes it different.

Perpetra offers perpetual futures (perps)—derivatives without expiry. You speculate on price direction with leverage, without owning the underlying asset.

## Perps vs Spot

|               | Spot          | Perpetual Futures    |
| ------------- | ------------- | -------------------- |
| **Direction** | Long only     | Long or short        |
| **Leverage**  | None (1x)     | Up to 100x on majors |
| **Capital**   | Full notional | Margin only          |
| **Expiry**    | N/A           | None (perpetual)     |

With 10x leverage on ETH at $3,000, you control $30,000 notional with \$3,000 margin. Profit (and loss) are amplified.

## How Perpetra Works

We use a **central limit order book** (CLOB). Orders sit in a book at specified prices; trades match when buy and sell orders cross. Same model as Binance or Bybit—just decentralized and settled on Robinhood Chain.

The stack:

* **Matching engine** — Off-chain for speed, with sub-second fills
* **Settlement** — On-chain on Robinhood Chain, so every trade is transparent and verifiable
* **Liquidity** — Shared with the broader ecosystem for deeper books and tighter spreads

<Info>
  Perpetra leverages the Orderly infrastructure for orderbook and liquidity. That means access to institutional-grade depth without bootstrapping from scratch. You get the best of both: a mature liquidity layer and on-chain settlement on Robinhood Chain.
</Info>

## Markets

All markets are USDC-denominated. Collateral is USDC; PnL is in USDC. Major pairs (BTC, ETH, SOL) support up to 100x leverage; alts typically cap at 10–20x.

See [Markets](/reference/markets) for the full list and parameters.

## Order Flow

1. **Place** — Choose market, order type, size, and price (for limits)
2. **Match** — Engine matches against the book
3. **Settle** — Fill is recorded on-chain
4. **Position** — Open positions show in your dashboard with live PnL

You can add to positions, reduce them, or close entirely. Partial closes are supported.

## Funding

Perpetual contracts don't expire, but they need to track spot price. **Funding rates** handle that. Periodically (every 4–8 hours depending on the market), longs pay shorts or vice versa based on whether the perp trades above or below spot.

* Perp premium → longs pay shorts
* Perp discount → shorts pay longs

Funding shows in the UI. It's factored into your cost basis when you close.