Liquidation
Liquidation: An automatic closing of the position due to a significant Margin loss.
Limit Order
Limit Order: An instruction to buy or sell on an exchange at a specific pre-set price or better.
Leverage
Leverage: A multiplication of the Initial Margin by x to give the total position value.
Insurance Fund
Insurance Fund: A balance on the exchange, filled by the Remaining Margin of a position liquidated at a price better than the Bankruptcy Price, and used to cover the loss from a position closed at a price worse than the Bankruptcy Price.
Margin, Isolated and Cross-Margin
Margin: A part of the total position value that belongs to the trader.
Mark Price and Index Price
Mark Price: The average market price (Index Price) + a decaying Funding Basis.
Index Price: The average price index of a cryptocurrency on major exchanges.
Funding and Funding Rate
Funding: The periodic interest payments between traders which aim to keep the Last Traded Price as close to the Index Price as possible.
Time in Force (TIF)
Time in Force: A special instruction used when placing an order to indicate how long it will remain active before it is executed or expires.
Dual-Price Mechanism
Dual-Price Mechanism: A condition when Liquidation is triggered by an average market price and not the Last Traded Price of the exchange.
Conditional Orders
Conditional Order: An instruction to buy or sell that is executed at a trigger price and is used to take profit, limit loss or open a position at a desired price.