KCEX Newbie Academy｜Quick Guide to Contract Trading Terminology
When you enter the KCEX contract trading interface, you’ll encounter many seemingly complex data points and terms. Understanding these terms is the first step for every beginner toward steady trading. This guide helps you quickly grasp their uses and meanings.
1. Position & Trade Information
Entry Price
The average price at which you established the position, serving as your entry reference point.
Position Size
The number of contracts or total value you currently hold. This figure relates to leverage; your actual capital investment is often smaller.
Leverage
The multiplier that amplifies your position size. For example, using 10x leverage means you only need to deposit 1/10 of the position’s value as margin.
Margin
The funds required to open and maintain a position. Higher leverage means lower margin, but also higher risk.
2. Price & Profit/Loss Indicators
Mark Price
A reference price calculated by the system based on market and index prices, used to determine PnL and liquidation.
Last Price
The most recent transaction price in the market, showing the actual result of trading.
Unrealized PnL
Floating profit and loss calculated based on the mark price. As long as the position is open, this PnL is considered unrealized.
Realized PnL
The actual settled profit and loss after closing the position, which directly affects your account balance.
3. Risk & Settlement Terms
Maintenance Margin
The minimum margin required to keep a position open. If your account balance falls below this level, the system will trigger forced liquidation.
Liquidation Price
The price level at which your position will be forcibly closed to prevent further losses.
Funding Rate
A fee that helps align perpetual contract prices with spot prices. Long and short traders periodically pay each other.
4. Order-Related Information
Limit Order
An order placed at a specific price, executed only when the market reaches that price.
Market Order
An order executed immediately at the best available market price. Fast execution but price may vary.
Take-Profit/Stop-Loss (TP/SL)
A preset price to automatically close a position to secure profits or limit losses, an essential risk management tool.
Conclusion
Mastering these basic terms is the first step toward steady progress in the contract market. KCEX recommends that all users fully understand each indicator’s meaning and risk before placing orders. Trade rationally and strictly manage risk to survive in a volatile market.
Disclaimer:
This guide is for educational purposes only and does not constitute investment advice. Contract trading carries high risk. Please evaluate carefully before proceeding.