Learn These Terms
Learn these terms:
1. Isolated Margin
Only the capital you have allocated to that specific trade is at risk, and if the trade is liquidated, your total account balance is not wiped out.
2. Cross Margin
The entire futures wallet balance is used to prevent that trade from being liquidated; lower risk for a single position, but greater danger for the whole account.
3. Maintenance Margin
The minimum capital that must remain in the trade for the exchange to keep it open. If the balance falls below it, you will be liquidated.
4. Initial Margin
The amount of capital required to open a trade.
5. Leverage Adjustment
Changing the leverage multiplier (e.g. 5x, 10x or 20x). The higher the leverage, the faster and larger the profits and losses will be.
6. Liquidation Price
The price at which, if the market reaches it, the exchange forcibly closes the trade to prevent further losses.
7. Mark Price
The exchange's reference price for calculating profit, loss and liquidation, which prevents price manipulation.
8. Index Price
The average price of an asset across several reputable exchanges, which is the basis for calculating the Mark Price.
9. Funding Rate
A fee exchanged between long and short traders to keep the futures contract price close to the spot market.
10. Funding Payment
The amount you pay or receive at set times, based on the Funding Rate.
11. Open Position
A trade that has not yet been closed and is still active.
12. Close Position
Ending the trade and locking in the final profit or loss.
13. Reduce Only
An order that only reduces the size of the current position and never opens a new trade.
14. Post Only
The order is only placed in the Order Book and is not executed immediately; so you usually pay the maker fee.
15. Take Profit Market
When the price reaches the target, the trade is closed with a Market order.
16. Stop Market
When the price reaches the stop loss, a Market order is triggered and the trade is closed quickly.
17. Trailing Stop
A stop loss that moves along with the price in the direction of profit and protects the profit already earned.
18. Auto-Deleveraging (ADL)
If the exchange's insurance fund cannot cover the losses of liquidated traders, part of the positions of profitable traders is automatically reduced.
19. Insurance Fund
A fund the exchange uses to cover losses resulting from traders' liquidations, so that the losses are not passed on to other users.
20. Margin Ratio
The ratio of available capital to the capital required to maintain the position; the closer this number gets to 100%, the higher the risk of liquidation.
1. Isolated Margin
Only the capital you have allocated to that specific trade is at risk, and if the trade is liquidated, your total account balance is not wiped out.
2. Cross Margin
The entire futures wallet balance is used to prevent that trade from being liquidated; lower risk for a single position, but greater danger for the whole account.
3. Maintenance Margin
The minimum capital that must remain in the trade for the exchange to keep it open. If the balance falls below it, you will be liquidated.
4. Initial Margin
The amount of capital required to open a trade.
5. Leverage Adjustment
Changing the leverage multiplier (e.g. 5x, 10x or 20x). The higher the leverage, the faster and larger the profits and losses will be.
6. Liquidation Price
The price at which, if the market reaches it, the exchange forcibly closes the trade to prevent further losses.
7. Mark Price
The exchange's reference price for calculating profit, loss and liquidation, which prevents price manipulation.
8. Index Price
The average price of an asset across several reputable exchanges, which is the basis for calculating the Mark Price.
9. Funding Rate
A fee exchanged between long and short traders to keep the futures contract price close to the spot market.
10. Funding Payment
The amount you pay or receive at set times, based on the Funding Rate.
11. Open Position
A trade that has not yet been closed and is still active.
12. Close Position
Ending the trade and locking in the final profit or loss.
13. Reduce Only
An order that only reduces the size of the current position and never opens a new trade.
14. Post Only
The order is only placed in the Order Book and is not executed immediately; so you usually pay the maker fee.
15. Take Profit Market
When the price reaches the target, the trade is closed with a Market order.
16. Stop Market
When the price reaches the stop loss, a Market order is triggered and the trade is closed quickly.
17. Trailing Stop
A stop loss that moves along with the price in the direction of profit and protects the profit already earned.
18. Auto-Deleveraging (ADL)
If the exchange's insurance fund cannot cover the losses of liquidated traders, part of the positions of profitable traders is automatically reduced.
19. Insurance Fund
A fund the exchange uses to cover losses resulting from traders' liquidations, so that the losses are not passed on to other users.
20. Margin Ratio
The ratio of available capital to the capital required to maintain the position; the closer this number gets to 100%, the higher the risk of liquidation.
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