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

# Glossary

> Glossary of common Polymarket terms

## Market Structure & Hierarchy

**Category**: Broadest classification level organizing instruments by event type (e.g., Sports, Politics, Crypto, Culture).

**Series**: More specific classification within each category, such as sports leagues or specific topics (e.g., NFL, NBA, US Presidential, Bitcoin).

**Event**: Specific occurrence with multiple possible outcomes. Each event consists of one or more instruments representing the complete set of tradable outcomes.

**Product**: Type of contract structure used to format instruments (e.g., Athletic Event Contract, Election Winner Contract, Total Score Contract).

**Instrument**: The tradable symbol representing a specific outcome for an event. Follows consistent naming conventions for easy identification. Also called a market.

**Participant**: The possible outcomes in an instrument. The long participant represents the "Yes" outcome, while positions on the opposing outcome are achieved by selling (shorting) the long participant.

**Market**: Same as an instrument. A tradable outcome with defined resolution criteria and sources.

**Contract**: An instance of an instrument. You trade contracts in quantities (e.g., buying 100 contracts of an instrument). Each contract settles at \$1.00 if the outcome occurs and \$0.00 if it does not.

## Trading Basics

**Long position**: Buying contracts of an instrument, betting the outcome will occur. You pay the current price per contract and receive \$1.00 per contract if the outcome happens.

**Short position**: Selling (shorting) contracts of an instrument, betting the outcome will not occur. You receive the current price per contract but must cover potential losses if the outcome happens.

**Long position**: Buying an instrument, betting the outcome will occur. You pay the current price and receive \$1.00 if the outcome happens.

**Short position**: Selling (shorting) an instrument, betting the outcome will not occur. You receive the current price but must cover potential losses if the outcome happens.

**Order**: A request to buy or sell contracts at a chosen price.

**Order book**: List of bids and asks showing available prices and size for each level.

**Bid**: Highest price buyers are willing to pay.

**Ask**: Lowest price sellers are willing to accept.

**Spread**: Gap between the bid and the ask.

**Size**: Number of contracts available to buy or sell at a given price.

**Liquidity**: How much size is available to trade at listed prices.

## Order Execution

**Fill**: When your order completes, fully or partially.

**Partial fill**: When only part of your order fills.

**Execution price**: The price at which your order fills.

**Fill price**: Average price you receive when your order fills across multiple levels.

**Marketable limit order**: Order that fills at the best available price shown on your screen.

**Price impact**: How much your fill price changes because of limited liquidity.

**Slippage**: Difference between expected and actual execution price.

**Maker**: Trader who adds liquidity by placing an order on the book.

**Taker**: Trader who removes liquidity by filling an existing order.

## Positions & Account

**Open position**: Contracts you currently hold.

**Closed position**: A position you no longer hold because you sold it or the market has resolved.

**Position value**: Real-time value in dollars of your open positions.

**Cash balance**: Funds in your account not tied to open positions.

**Buying power**: Cash available to open new positions after margin is applied.

**Instant buying power**: Part of your deposit that becomes available to trade immediately.

**Margin**: Funds locked to cover the maximum possible loss of a short position. Equal to \$1.00 per contract shorted.

**Max gain**: The most you can earn on a position.

**Max loss**: The most you can lose on a position.

## Market Lifecycle

**Clarification**: Extra context added to explain how rules should be understood.

**Resolution**: When Polymarket determines the final outcome of a market using the sources listed in the rules.

**Settlement**: Final payout of \$1.00 for winning contracts and \$0.00 for losing contracts.

## Fees & Display

**Fees**: Trading or platform fees applied to executed orders.

**Odds display**: How prices are shown, such as price, percent chance, or American odds.

**Open order**: Order waiting on the book to be filled.

**Order status**: Whether an order is open, filled, or partially filled.

**History**: Section showing your past filled orders and closed positions.