DigiFinex: Margin Trading Glossary

Margin Trading:

For example, if you opened a margin position with 2X leverage and your base assets had increased by 10%. Your position would have yielded 20% because of the 2X leverage.

Positions:

Leverage:

Borrow Limit:

✦ Borrow Limit = Total Margin ✕ Leverage.

Margin:

Total Margin:

Used Margin:

USDT is used first by default, followed by BTC and ETH.

Available Margin:

 Available Margin = Total Margin — Used Margin

Margin Level:

Margin Level = (Total Margin — Paper Loss) ÷ Used Margin

Profit or Loss

➤ For long positions, you have a paper profit (loss) if your opening cost is lower (higher) than current valuation.
➤ For short positions, you have a paper profit (loss) if your opening cost is higher (lower) than current valuation.

Paper Profit:

Paper Loss:

Paper Profit/Loss Level Calculation:

● For A Long Position = (Current price — Average Purchase Price) ÷ Average Purchase Price● For A Short Position = (Average Sell Price — Current Price) ÷ Average Sell Price

Closing Positions & Force-closing Positions

Closing Positions:

➤ To close a long position, you execute a leveraged sell order.➤ To close a short position, you execute a leveraged buy order.
➤ To close the entire position, you sell 1 BTC of BTC/USDT (at any leverage).➤ To close half the position, you sell 0.5 BTC of BTC/USDT (at any leverage).

Don’t execute a closing order for more volume than your position, because this will create a new position on the opposite side.

Margin Liquidation Level:

Margin Liquidation Price:

Margin Call Level:

Accrued Interest and Loan Repayment

Accrued Interest Policy:

Interest Rate:

Borrow/Repay Policy:

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