A live list of buy and sell orders at different prices. Example: The best bid and best ask form the top of the order book.

A pricing model where a formula and a liquidity pool determine the price instead of a traditional order book. Example: An AMM adjusts price when you trade against the pool.

A pool of tokens supplied by users so others can trade against it. Example: A USDC/ETH pool allows swaps between the two assets.

The gap between the highest bid and lowest ask in a market. Example: A narrow spread usually indicates an efficient market.

The difference between the expected price of a trade and the actual execution price. Example: Large trades in shallow pools often suffer high slippage.

How favorable a trade’s final outcome is, considering price, slippage, fees, and speed. Example: A fill with low slippage and fair fees has good execution quality.

The amount of volume available at or near the current price. Example: Deep liquidity allows larger trades with less price impact.

The risk associated with a specific trading platform or environment. Example: A centralized exchange halt or a DEX contract bug are venue risks.

The process by which buyers and sellers in multiple venues collectively set the market price. Example: Arbitrage trades help synchronize price discovery across exchanges.

A tool or protocol used to move assets from one blockchain to another. Example: Moving tokens from Ethereum to a Layer-2 network via a bridge.

A trading environment built on top of a base chain to reduce fees and increase speed. Example: A DEX on a Layer-2 chain can offer cheaper swaps than mainnet.

The waiting area where pending transactions sit before being added to a block. Example: A low-fee transaction may remain stuck in the mempool during network congestion.