> For the complete documentation index, see [llms.txt](https://docs.thena.fi/thena/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.thena.fi/thena/thena-perps-v2/key-concepts.md). # Key Concepts ### Orders, intents and positions An intent expresses a desired trade and its execution conditions. An order communicates that instruction to the trading system. A position is the exposure created when the order executes. Keep these states distinct when reading the interface. A submitted or pending order does not establish that a trade has filled. Likewise, submitting a closing order does not remove exposure until it executes. ### Long and short positions A long position gains from an increase in the underlying price and loses from a decrease. A short position gains from a decrease and loses from an increase. The final result also depends on execution prices, position size, trading fees and applicable funding. ### Collateral, margin and leverage Collateral supports trading exposure. Margin requirements determine how much support the account or position needs. Leverage expresses the relationship between exposure and supporting collateral. For example, $1,000 of exposure supported by $100 of collateral represents 10x leverage. A 1% adverse price move produces approximately $10 of trading loss before costs, equal to 10% of that collateral. This is an illustration, not a liquidation calculation or a statement of THENA's market limits. ### Execution price and valuation price The execution price determines where a trade enters or exits. The price used to value open exposure or assess margin may have a different role from the latest chart price. Use the account and position information provided by the platform when assessing margin. A chart movement alone does not establish the exact liquidation threshold or the price at which an order will fill. ### Unrealized and realized PnL Unrealized profit and loss describes the current valuation of open exposure. Closing exposure realizes its trading result at the execution price. Applicable fees and funding affect the account outcome. A profitable open position is not the same as a completed trade or withdrawn funds. ### Fees and funding Trading fees are costs associated with trading activity. Funding is a separate mechanism that can affect the cost of holding perpetual exposure. Review the applicable rate, direction and timing shown for the market before trading. Do not infer the complete cost of a position from its entry fee alone. ### Liquidation Liquidation can occur when the account or position no longer meets its maintenance margin requirements. Leverage, losses, costs and the applicable margin rules all matter when assessing this risk. A stop order does not guarantee execution before liquidation. Its trigger, execution conditions and the margin threshold serve different functions. Review the relevant market rules and account information in [THENA Perps](https://perps.thena.fi) before opening or changing exposure.