English Version: Common Terms in Echobit Futures Trading
2025.04.18
1. Margin Concepts
- Margin: Funds required to open and maintain a position.
- Initial Margin: The minimum amount needed to open a position.
- Maintenance Margin: Minimum margin to keep a position open. Falling below it leads to liquidation.
- Maintenance Margin Ratio: When margin ratio drops below this, the position may be liquidated.
- Position Margin: Initial margin plus estimated closing fees.
- Order Margin: Total margin occupied by all open (unfilled) orders.
- Margin Ratio: Risk indicator. A ratio at or below 100% may result in liquidation.
2. Margin Modes
- Isolated Margin: Margin is isolated to each position to limit risk.
- Cross Margin: All available funds in your account are used to support positions.
3. Price Mechanisms
- Mark Price: Fair price calculated based on index and funding rates.
- Index Price: Weighted average of spot prices from global exchanges.
- Trigger Price: Price that activates conditional orders like stop-loss or take-profit.
- Mark Price Distance to Liquidation: Distance between mark price and liquidation price, indicating risk.
4. Order Types
- Market Order: Executes immediately at the best available price.
- Limit Order: Order placed at a specific price; not guaranteed immediate execution.
- Trigger Order: Orders that are submitted only after a trigger condition is met.
- Trailing Stop Order: A stop-loss that moves with the market price and triggers after a defined pullback.
5. Take-Profit & Stop-Loss
- TP/SL (Take-Profit/Stop-Loss): Predefined exit prices to capture gains or limit losses.
- Position TP/SL: Applies to the entire position including later adjustments.
- Trailing TP/SL: Dynamically adjusts with price to maximize gains or limit losses.
- Forced Liquidation: System-initiated closure when margin falls below maintenance level.
- Market Close: Closes a position immediately at the market price.
- Quick Close: Fast execution using the best available price.
- Unrealized PnL: Estimated profit/loss based on current price.
- Realized PnL: Actual profit/loss from closed positions.
- Trailing Stop: Dynamic stop-loss that follows price trends to lock in profits.
6. Fees & Funding
- Open Fee: Charged when opening a position.
- Close Fee: Charged when closing a position.
- Transaction Fee: Fee incurred on each trade.
- Funding Fee: Periodic payments between long and short positions to align futures with spot price.
- Funding Countdown: Funding is settled every 8 hours at 00:00, 08:00, and 16:00 (UTC+8).