Positions

Types of positions

Long position (Long)

Long position: one of the types of trading transactions. The principle of a long position is that a trader holding a long position expects the asset to grow. In simple words, the trader expresses his confidence in the growth of his chosen asset and if the asset grows, the trader makes a profit.

Short position (Short)

Short position: one of the types of trading transactions. The principle of a short position is that the trader expects the price to decline. If the asset goes down, the trader in a short position will make a profit.

Limit orders

A limit order (Limit) is an instruction from a trader to a broker to make a deal to buy/sell a specified volume of an asset when quotes reach a certain level (execution price). In such an order 2 parameters are necessarily specified:

• The price at which the trader wants to make a buy/sell transaction. It is necessarily better than the current market price and is not less than the number of minimum price steps (points) allowed by the rules of the trading floor.

• Planned transaction volume.

In simple words, the trader specifies the price of the asset and the volume of the deal. If the price of the asset reaches the specified values, the action that the trader wanted to make will be executed.

Take profit / Stop loss

Take profit

In stock trading, this term is used to describe an order (order, order), with the help of which a trader wants to take profit. This is the main goal and purpose of Take Profit. A trader can specify take profit for any percentage of his trade.

Stop loss

Stop loss level is always negative to the trader's position. If the trader's position decreases to the value specified in the order, the deal is closed automatically at the market price. Stop loss is used to fix a losing deal. Similarly to Take Profit, a trader can specify Stop loss for any percentage of his trade.

Profit and Loss of Trading Transactions

The main goal of a trader when opening a trade, is to make a profit. If a trader successfully predicts the market, then his trade will be profitable and the trader for successfully predicting the market will get profit depending on his trade.

Leverage

Leverage is borrowed funds provided to increase the volume of a position. The size of leverage determines the ratio of a trader's own funds to borrowed funds. For example, if leverage is 10x, a trader with 1000 USDT can open a position for 10 000 USDT. The use of leverage increases both potential profit and risks.

Index Price and Market Price

Index Price is the fair price of an asset, which is calculated as an average of data from three independent oracles Binance, OKX, Bybit. This approach ensures objectivity and minimises the impact of market manipulation or short-term price spikes on external platforms. Index Price is used to determine the underlying value of an asset and is a key reference point when calculating parameters such as Funding Rate.

Market Price - the current market price of the asset, determined in real time on the platform. It may differ from Index Price, as it is formed on the basis of current trading activity, transaction volumes and liquidity.

Market Price is used to execute orders and calculate positions on the platform, ensuring the accuracy of trading operations.