Reya
  • Start Here
    • Why Reya?
  • REYA PRODUCTS
    • Reya DEX
      • Navigating Reya DEX
        • Dashboard: getting started
          • Creating your margin account
          • Moving funds
          • Checking your account
        • The Trading Screen
          • Trade form
          • Market Data Panel
        • LP Pool
      • Trading on Reya DEX
        • Perpetual Futures
        • Margin
        • Auto-exchange and Liquidations
        • Specifications
        • Conditional Orders
        • FlashSwap
        • Collateral liquidations
        • Settlement and cross-collateralization
      • Docs: Reya DEX REST API
      • Docs: Reya DEX WebSocket
    • Reya Network
      • The structure of Reya Network
      • The Liquidity Layer
        • Reya’s pool for perpetual futures
        • Offering liquidity in the passive pool
        • Deepdive into passive perps
        • Network Owned Liquidity
      • Derivatives Clearing
        • Automatic leveraging of PnL across instruments
        • Cross-collateralization
          • Haircuts
          • Auto-exchange conditions
          • Auto-exchange mechanism
        • Cross-margining
          • The margin system
        • The liquidation engine
          • Ranked liquidations
          • Dutch auction
          • Backstop LPs
          • Insurance Funds
          • Page 1
        • Spot markets
        • Reya Governance
      • What's the roadmap
      • Who's Behind Reya Network
    • rUSD / srUSD
      • rUSD
      • srUSD
      • srUSD How to and FAQs
  • COMMUNITY
    • Join the Reya Community
    • Incentives Overview
      • Experience (XP)
        • Technical details
      • Boosts
      • Ranks and Seasons
    • x.com
  • Technical Docs
    • Reya Python SDK
    • Contract Functions
      • Core
      • Passive Perp Instrument
      • Passive Pool
      • Oracle Adapter
    • Contract Addresses
    • Smart Contract Withdrawals
    • Audits
  • REYA RESOURCES
    • Blog
    • Beginner's Guide to Better Trading with Reya
    • Block Explorer
    • Glossary (coming soon)
    • FAQ (coming soon)
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On this page
  • Understanding Perpetual Futures
  • The Magic of Margin Trading
  • Why Liquidity Changes Everything
  • The Speed Advantage
  • Understanding Funding Rates
  • FlashSwaps Keep Your Trades Alive
  • The Institutional Edge
  • A Glimpse of the Future
  1. REYA RESOURCES

Beginner's Guide to Better Trading with Reya

Imagine if professional traders built the perfect trading platform from scratch. That's Reya.

ReyaDEX combines the speed of traditional exchanges with the security of decentralized finance, creating something entirely new. Let's explore how it works and why it matters.

Understanding Perpetual Futures

When you buy Bitcoin directly, you need to pay the full price and actually hold the Bitcoin. Perpetual futures (or "perps") work differently. They let you trade based on Bitcoin's price movements while only putting down a fraction of the total value as collateral.

Think of it like betting on a horse race. You don't need to buy the horse to bet on whether it will win or lose. Similarly, with perps, you can bet on whether an asset's price will go up ("going long") or down ("going short") without owning the actual asset. Unlike regular futures contracts that expire on specific dates, perpetual futures can last indefinitely – hence the name "perpetual."

The Magic of Margin Trading

Your margin account on Reya works like a sophisticated security deposit. Traditional platforms force you to put up separate deposits for each type of trade you want to make. Reya's cross-margining system lets you use one deposit across all your trades, making your capital work much more efficiently.

Here's where it gets interesting: on Reya, your margin deposit isn't just sitting idle. It can earn yield while securing your trades. Imagine if your security deposit for renting an apartment could simultaneously earn interest and be used as collateral for other investments – that's how Reya's yield-bearing collateral works.

Why Liquidity Changes Everything

Liquidity is the lifeblood of trading, but most people don't understand how it works until they encounter problems. Imagine trying to sell a house in two different scenarios. In a small town with few buyers, you might have to significantly lower your price to make a sale. In a bustling city, you're more likely to get fair market value because there are always interested buyers.

Trading platforms work the same way. Most decentralized exchanges are like small towns – when markets get busy or volatile, it becomes difficult to trade at fair prices. Reya solves this through its unified liquidity pool design. Instead of having separate small pools for each trading pair, Reya maintains one deep pool that serves all markets. This means you can trade any asset, at any time, without worrying about dramatic price impacts.

During market chaos, when other exchanges see their liquidity dry up, Reya's innovative design keeps markets stable and tradeable. The system automatically adjusts to volatility without sacrificing depth, ensuring you can always enter and exit positions at reasonable prices.

The Speed Advantage

Trading speed isn't just about bragging rights – it fundamentally affects how much profit you can make or lose. Reya processes trades in 100 milliseconds, but why does this matter?

Imagine you're trying to buy concert tickets the moment they go on sale. If your internet is slow, the best seats might be gone before your purchase goes through. In trading, slow execution means the price you see might not be the price you get. Reya's speed ensures that when you see an opportunity, you can actually take it.

This speed is combined with a fair ordering system called FIFO (First In, First Out). Just like a proper queue at a store, the first person to place an order gets served first. This prevents predatory trading practices where faster traders can jump ahead of your orders and take advantage of price differences.

Understanding Funding Rates

Funding rates are crucial to how perpetual futures work, but they're often poorly explained. Here's how they actually work: Because perpetual futures never expire, there needs to be a mechanism to keep their price close to the underlying asset's price.

Think of funding rates like a balancing scale. When more traders are betting the price will go up (going long), they pay a small fee to those betting it will go down (going short), and vice versa. This creates a natural equilibrium. Reya's unified liquidity pool helps keep these rates stable and predictable, unlike other platforms where rates can swing wildly during volatile periods.

FlashSwaps Keep Your Trades Alive

FlashSwaps are one of Reya's most innovative features, solving a common problem in trading. Traditionally, if you wanted to switch your collateral from one asset to another, you'd need to close your positions, make the swap, and then reopen your positions – a process that's expensive and risky.

FlashSwaps let you change your collateral instantly without closing your positions. It's like being able to swap the engine in your car while it's still running. This means you can take advantage of opportunities or adjust your strategy without disrupting your existing trades.

The Institutional Edge

What makes Reya truly special is how it brings institutional-grade trading to everyone. Professional trading firms like Selini Capital and Amber Group, who typically only work with large institutions, provide liquidity and sophisticated trading strategies on Reya. This means regular traders can access the same deep markets and advanced features that were previously reserved for Wall Street.

A Glimpse of the Future

Reya represents more than just another trading platform – it's a peek into how all financial markets could and should work. By combining the best aspects of traditional finance with the innovations of decentralized technology, it creates something entirely new: a trading environment that's fast, fair, and accessible to everyone.

The future of trading isn't about choosing between speed and security, or between sophistication and simplicity. It's about having it all in one place. That's what Reya delivers.

Welcome to trading as it should be.

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Last updated 4 months ago