key
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Description
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Use Cases
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Long/Short |
"Long" refers to when a user anticipates a price increase in the future market. They start by buying contracts and later sell them at a higher price to earn a profit. In CoinCatch, users click on 'Buy long' to initiate a long position.
"Short" refers to when a user anticipates a future price decline. They start by selling contracts and later buy them back at a lower price to profit. In CoinCatch contracts, users click on 'Sell short' to initiate a short position. |
Before Opening a Position |
Leverage | Traders should use leverage multiples that suit their risk tolerance and trading experience in the cryptocurrency market. For conservative or novice cryptocurrency traders, leveraging at 5x or below is more suitable. The choice of leverage depends on a trader's level of expertise and risk tolerance in the cryptocurrency market. | Before Opening a Position |
Initial Margin / Maintenance Margin |
The initial margin refers to the minimum amount of collateral required in a user's account to open a futures contract position.
The maintenance margin is the minimum amount of collateral required for a user to continue holding a position. It can increase or decrease based on the risk limits chosen by the user. |
Before Opening a Position/ During Position Holding |
Position Value | "Position value" refers to the current market value of a held position, which fluctuates in real-time with the latest market prices. It's important to note that the calculation of position value varies depending on the type of contract being traded. | During Position Holding |
Funding Rate / Countdown | The funding rate is the fee exchanged every 8 hours at UTC 00:00, 08:00, and 16:00 in the form of funding payments. Countdown refers to the time remaining until the next change in the funding rate. | any time |
Mark Price / Index Price / Market price |
Mark Price is determined by the Index Price and the upcoming funding rate, reflecting the current fair value of the contract. Mark Price is also used to calculate unrealized profit and loss of positions and liquidation triggers.
Index Price is derived from the weighted average of prices provided by several spot platforms, weighted by their respective volumes.
Last Price refers to the most recent transaction price of the contract. |
Before Opening a Position/ During Position Holding |
Isolated Margin / Cross Margin |
Isolated Margin allows users to hold separate long and short positions, each with its own margin. If a position's margin drops below maintenance levels, only that position is at risk of liquidation, limiting potential losses to its margin. Users can adjust margins for individual positions.
Cross Margin uses the entire account balance to support all positions. If liquidation occurs, losses can extend across all positions using the same asset. This method uses all available funds to prevent liquidation. |
Before Opening a Position |
Limit Order/Market Order |
A limit order is placed at a user-defined price on the order book and executes only when the market reaches or exceeds that price. It allows buying at lower or selling at higher prices than the current market value. Unlike market orders, which execute immediately at the current price, limit orders wait on the order book
A market order executes at the best available price in the market. If not fully filled, it continues to seek the next best available price. |
Before Opening a Position |
Take Profit / Stop Loss | Take Profit order is an order to close a position when it reaches a profitable level, while Stop Loss order is an order designed to limit losses on the current position. Take Profit and Stop Loss orders can be placed with a single click using the Take Profit / Stop Loss function. | Before Opening a Position/ During Position Holding |
Realized Profit/Loss Unrealized Profit/Loss |
Realized Profit/Loss refers to the profit or loss generated from closed positions and transaction fees, which have not yet been included in the account balance through settlement calculations.
Unrealized Profit/Loss is the estimated profit or loss of current positions based on the current market price, excluding transaction fees and funding costs. |
During Position Holding |
Closing/Liquidation |
Closing: Closing involves buying or selling contracts that are identical in type, quantity, and delivery month as the current holdings but in the opposite direction, effectively settling the contract position.
Liquidation: Force liquidation happens when a position's margin drops below the minimum maintenance requirement, leading to the loss of all collateral. It triggers when the mark price reaches the position's liquidation price. |
During position holding / After closing position |
Order Types Overview
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Limit Order: Allows users to set a specific price in the order book. It executes only when the market reaches or exceeds this price, enabling buying at lower prices or selling at higher prices compared to the current market rate.
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Market Order: Executes immediately at the best available price. If not fully filled, it continues at the latest favorable price.
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Post Only: Ensures the user is always the Maker by canceling the order if it would immediately match with an existing one.
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Trailing Stop Order: A strategy order that adjusts as the market moves. It helps limit losses and secure profits by placing an order a set percentage or amount away from the market price. It closes the trade if the price moves adversely by a specified percentage.
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Trigger Order: Executes a planned order when the price hits a preset trigger point. Assets aren't frozen before triggering, and execution isn't guaranteed due to factors like order position or tier limits.
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