Contract Term Reference

Welcome to our detailed guide on the contract terms you'll encounter on our platform. Let's dive in!

Basic Terms

Order Book
An Order Book displays all open buy or sell orders posted by users on the exchange.

Underlying Asset

The digital asset (e.g., Bitcoin) from which the price of a Futures or Perpetual Contract is set.

Understanding Prices

Index Price

The calculated price of the underlying asset, derived from multiple external spot market prices.

Market Price

The latest transacted price of an asset.

Mark Price

A calculated "fair price," taking into account various market factors.

What is it used for?:

  • Calculation of unrealized Profit and Loss (P&L).

  • Triggering of liquidations.

  • Safeguarding against market manipulation.

Learn MoreMark Price Calculation FAQ

Spot Price

The current market price for immediate trades.

Position-Related Terms

Types of Positions

Long Position / Buy Position: Buying first to sell later.

Example: Owning 100 BTC contracts means you hold a long position.

Short Position / Sell Position: Selling first to buy back later.

Example: If you've sold 100 BTC contracts, you're in a short position.

Entry Price

The effective price at which you bought or sold when opening your position.

Contract Multiplier

The fraction of the underlying asset each contract represents.

Example: BTC-PERP has a Contract Multipler of 0.001, which means 1 contract represents 1/1000th of a Bitcoin.

Position Size

The number of contracts you're trading.

Notional Value

The total value of the position you hold, calculated as follows:

Notional Value = Current Mark Price x Position Size x Contract Multiplier

Example: If you have 100 BTC contracts at a Mark Price of $40,000, your Notional Value is $40,000 x 100 x 0.001 = $4,000.

Position Modes

One-Way Mode

One-Way Mode refers to a specific position mode setting. When you set your position mode to  One-Way Mode, you can only hold one direction per market, either long or short. This mode offers a straightforward way to manage your position, allowing you to change your position size and direction with ease.

Hedge Mode

Hedge Mode is an alternative position mode setting. When activated, you can simultaneously hold two positions in opposite directions (both long and short). This mode is beneficial for users wanting to lock in unrealized P&L without closing their positions.

Leverage and Risk


The ratio of the initial margin to the order value. Higher leverage means higher risk but lower initial costs.


With 100x leverage, the initial margin is just 1% of the order value.

With 1x leverage, the initial margin is 100% of the order value.

Risk Limit

A set of rules designed to minimize large liquidations and maintain good market integrity.

Learn More: How to Read Your Margin and Leverage Tabs

Margin Terms

Initial Margin

The minimum amount you must have to open a position.

Maintenance Margin

The minimum amount you must maintain to keep your position open. Failure to do so can trigger the liquidation of your position.

Cross Wallet

Enables multiple digital currencies to serve as margin. The collateral can be used as margin for all markets.

Isolated Wallet

Enables multiple digital currencies to serve as margin. The collateral can only be used as margin for the specific market.


Liquidation Process

What happens:

  • The system will automatically execute a buy/sell order or undergo a partial liquidation if the risk limit is reached.

    • If you have sufficient margin after executing a market buy/sell, the liquidation process will be halted.

    • After an automatic buy/sell order, partial liquidation, your risk limit level will be downgraded.

  • The system takes over your position and associated margin.

  • Additional margin from the BTSE insurance fund may be used.

  • If still not closed, Auto-Deleveraging (ADL) occurs.

Liquidation Price

The price at which liquidation is triggered.

Bankruptcy Price

The price at which your margin balance becomes zero.

Auto-Deleveraging (ADL)

A process to close opposing positions from other traders when liquidation is unsuccessful.

ADL Indicator 

This shows your likelihood of being auto-deleveraged.

Liquidation Notification

When liquidation, partial liquidation, or a forced market buy/sell occurs, the system can automatically send an email to notify you.

Profits and Losses

Unrealized P&L

Current profit or loss that isn't finalized until your position is closed.

Realized P&L

Profit or loss you've made when your position is closed.

Other Important Terms

Funding Fees

Payments made between Long and Short positions. 

Basis / Basis Differential

The difference between the Spot Price and the Entry Price of the contract at expiration.

Bid Price

The price a buyer is willing to pay (Bid) to enter a position.

Ask Price

The price a seller is willing to receive (Ask) to enter a position.

Market Makers

Provide liquidity by placing Bid and Ask prices in the Order Book.

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