> ## Documentation Index
> Fetch the complete documentation index at: https://docs.speculate.trade/llms.txt
> Use this file to discover all available pages before exploring further.
# The trading engine
> How trading works on Speculate
The trading is simulated, the stakes are real. That's the entire model, in one line — here's how it actually works under the hood.
Every competition and duel runs on Speculate's own matching and liquidation engine. It is priced off **real, live market data** streamed from Kraken — real market prices, not a toy sandbox. Your orders are matched, filled, and liquidated by Speculate's engine. They are **never routed to a live exchange**. No slippage from an order book you don't control, no counterparty but the market itself — just you, real prices, and the clock.
## Your balance
Join a competition or duel and you're handed \*\*$10,000 in simulated balance** — the same starting stack as every other participant, whether the entry fee was $0 or \$10,000. Nobody buys an advantage in starting capital. The only edge is how you trade.
That balance is what you risk. Open a position on the competition's single symbol, go **LONG** or **SHORT**, and your equity moves with the market in real time.
## One symbol, perpetual futures
Each competition or duel trades exactly **one symbol** for its full duration — no switching tickers mid-contest, no diversifying across pairs. Everyone in the lobby is watching the same chart, trading the same asset, under the same clock. That's what makes it a competition rather than a portfolio exercise.
Positions are perpetual futures: **LONG** if you're betting the price rises, **SHORT** if you're betting it falls. Standard perp mechanics apply — margin, leverage, and liquidation all work the way you'd expect from a real perps venue, because the engine is built to mirror one. See [Leverage & liquidations](/trading/leverage) for how margin and liquidation tiers work.
## How you're ranked
Rankings are decided by **ROI** — the percentage return on your $10,000 simulated balance, not raw PnL. A trader who turns $10,000 into $11,000 outranks one who turns $10,000 into \$10,500, regardless of position size or how much notional they pushed through the market. Percentage gains win, not dollar gains.
Where that ranking lands you on the prize curve is covered in [Payouts](/competitions/payouts).
**Your risk is capped twice over.** The most you can lose of your simulated balance is the balance itself — \$10,000, and not a cent more, however aggressively you trade. And because that balance isn't real money, the most you can lose in real terms in a paid competition or duel is your **entry fee**. There's no path to owing more than you put in.
**HyperStake is not this.** HyperStake is a separate product that executes **real Hyperliquid perps with real funds** — actual positions on a live exchange, not a simulated engine. Don't confuse the two. See [HyperStake overview](/hyperstake/overview) before you trade there.
Market, limit, take-profit/stop-loss, and reduce-only — how to actually place and manage trades.
Margin mode, leverage caps up to 100x, and how the liquidation engine works.