Codex

The most accurate definitions of blockchain, cryptocurrency, and trading vocabulary.

A

Auto-Deleveraging (ADL)

A loss covering system, that automatically deleverages opposing traders’ positions by profit and leverage priority. It is triggered when the Insurance Fund is insufficient to cover the loss.

B

Bankruptcy Price

The price at which a trader would have lost all his Initial Margin.

Bitcoin Halving

A process of dividing the generated reward for mining the cryptocurrency like Bitcoin block in half.

Bitcoin Taproot/Schnorr

A Soft Fork proposed for the Bitcoin blockchain to improve fungibility, the functionality of Smart Contracts, and privacy by making all transactions appear the same to external blockchain observers.

C

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.

D

Dual-Price Mechanism

A condition when Liquidation is triggered by an average market price and not the Last Traded Price of the exchange.

E

Ethereum

An open-source network with its own Internet browser and a coding language built on a decentralized blockchain which serves as a platform for building applications (DApp). Ethereum has its native cryptocurrency – Ether (ETH).

Ethereum Ice Age

An open-source network with its own Internet browser and a coding language built on a decentralized blockchain which serves as a platform for building applications (DApp). Ethereum has its native cryptocurrency – Ether (ETH).

F

Fill or Kill (FOK)

A Time in Force instruction to immediately fill the entire order at the order price or cancel it.

Fill Price

The Last Traded Price at the time the order is opened/closed.

Funding

The periodic interest payments between traders which aim to keep the Last Traded Price as close to the Index Price as possible.

G

Good till Canceled (GTC)

A Time in Force instruction to keep the order active until filled or canceled by a trader.

I

Immediate or Cancel (IOC)

A Time in Force instruction to cancel any portion of the order that can not be filled immediately at the order price or better.

Index Price

The average price index of a cryptocurrency on major exchanges.

Initial Margin

The amount of money a trader uses as a collateral to open a position on the exchange.

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.

L

Last Traded Price

The price index of a cryptocurrency trading pair on the exchange.

Leverage

A multiplication of the Initial Margin by x to give the total position value.

Limit Order

An instruction to buy or sell at a specific pre-set price or better.

Lightning Network

The second layer protocol on a blockchain like Bitcoin that solves scalability issue enabling users to make fast and small cryptocurrency transactions.

Liquidation

An automatic closing of the position due to a significant Margin loss.

Liquidation Price

The price at which a Mark Margin (based on the Mark Price) level reaches the Maintenance Margin level.

Liquid Network

A parallel network that runs as a sidechain of Bitcoin enabling fast and confidential transactions of large amounts of cryptocurrency.

Litecoin (LTC)

The first altcoin – cryptocurrency other than Bitcoin – created as a result of the first successful Hard Fork of the Bitcoin blockchain.

M

Margin

A minimum amount of a trader’s money he needs to keep his position open.

Margin Rate

The value of a position based on the Mark Price.

Margin (Leveraged) Trading

Purchase and sale of a financial asset, like cryptocurrency, using Leverage to open larger positions with a small collateral amount in order to profit from the market swings.

Mark Price

The average market price (Index Price) + a decaying Funding Basis.

Maintenance Margin

A part of the total position value that belongs to the trader.

Market Order

An instruction to buy or sell “right now” at the market price.

Mining

Using computational power to solve complex cryptographic algorithms on a blockchain in order to get block rewards in a form of digital coins.

O

Order

An instruction to buy or sell on an exchange.

P

Perpetual Contract

A type of Futures Contract which doesn’t have an expiration date or settlement.

Profit and Loss (PNL)

An income statement for Perpetual Contracts. The Unrealized PNL is based on the difference between the average Entry Price and the Mark price. The Realized PNL is based on the difference between the average Entry Price and the average Exit Price.

R

Realized PNL

A calculation of the actual profit or loss after the position is closed. Realized PNL is based on the difference between the average Entry Price and the average Exit Price.

S

Security Token

A digital representation of a tradable asset or a utility on a blockchain that derives its value from that asset.

Smart Contracts

A computer protocol on a blockchain that regulates the terms of an agreement between two parties. The contract is controlled by the code and is only triggered by the circumstance of execution, which eliminates the third party from participation.

Socialized Loss

A loss covering system, which spreads the loss amount among all profitable traders on the exchange.

Stop Loss

An automatic order to fully or partially close the position at a certain pre-set price better than the Liquidation Price to prevent further loss.

T

Tether (USDT)

A fiat collateralized stablecoin which value is backed by the US dollar issued by Tether Limited.

Time in Force (TIF)

A special instruction used when placing an order to indicate how long it will remain active before it is executed or expires.

Take Profit

An automatic order to fully or partially close the position at a pre-set price with an acceptable profit.

U

Unrealized PNL

A calculation of a possible profit or loss, and is displayed while the position is open. For Unrealized PNL calculation, the Mark Price is used instead of the average Entry/Exit Price.

W

Wallet

A storage for private and public blockchain keys to access, receive, or spend cryptocurrencies.