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.
Bankruptcy Price: The price at which a trader would have lost all his Initial Margin.
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.
Dual-Price Mechanism: A condition when Liquidation is triggered by an average market price and not the Last Traded Price of the exchange.
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.
Good till Canceled (GTC): A Time in Force instruction to keep the order active until filled or canceled by a trader.
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.
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.
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.
Maintenance Margin: A minimum amount of a trader's money he needs to keep his position open.
Margin: A part of the total position value that belongs to the trader.
Margin Rate: The value of a position based on the Mark Price.
Mark Price: The average market price (Index Price) + a decaying Funding Basis.
Market Order: An instruction to buy or sell “right now” at the market price.
Order: An instruction to buy or sell on an exchange.
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.
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.
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.
Take Profit: An automatic order to fully or partially close the position at a pre-set price with an acceptable profit.
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.
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.
BTCMEX Trading Codex - the most accurate definitions of Cryptocurrency Trading Terms