MGBX Futures-Related Terminology

Trading Pair: A combination of the underlying asset and the quote asset in a futures market. For example, a BTC/USDT futures pair reflects changes in the price of BTC relative to USDT.

Opening a Position: Establishing a new futures position through a trade. Buying to open a long position means taking a position in anticipation of rising prices, while selling to open a short position means taking a position in anticipation of falling prices.

Leverage: The ratio of a position's notional value to its initial margin. Higher leverage generally requires less initial margin for the same position size, but also amplifies the impact of price fluctuations on margin-related gains and losses.

Initial Margin: The margin requirement that must be met when opening a position. As a simplified calculation, it equals position value ÷ leverage. In practice, additional requirements such as fee reserves and risk tiers must also be met.

Available Balance: Funds currently available for placing orders, covering fees, or other permitted uses. Funds reserved for pending orders, open positions, and unrealized PnL may all affect the available balance.

Order Quantity and Notional Value: Quantity represents the size of a trade, while notional value represents its corresponding value in the quote asset. If the quantity is denominated in BTC, 0.01 BTC at a price of 60,000 USDT has a notional value of 600 USDT. If the interface displays the quantity in 「contracts」, the contract multiplier must first be taken into account for conversion.

Maker / Taker: Maker orders enter the order book and wait to be filled, providing liquidity; Taker orders execute against existing orders in the order book, consuming liquidity. A limit order may also be filled immediately and charged the Taker fee.

 

Position Size and Average Entry Price: Position size refers to the amount of a position that remains open. When multiple opening trades are executed, they form a corresponding average entry price.

Last Traded Price: The price of the most recent trade for the futures contract. It may differ from the mark price and index price.

Index Price: A reference indicator used to reflect the underlying asset's market price. Its specific components and calculation methodology are determined by the applicable product rules.

Mark Price: A reference indicator used to estimate the fair value of a futures contract. It may be used in unrealized PnL or risk calculations. The price used for liquidation and the price used for take-profit and stop-loss orders should be checked against their respective rules and should not be assumed to be the same.

Unrealized PnL: The floating profit or loss generated by price movements in the portion of a position that has not yet been closed. Displayed unrealized profits do not necessarily equal the final net proceeds.

Maintenance Margin: The minimum margin requirement that must be maintained to keep an existing position open. It is generally related to position size and the applicable risk tier.

Margin Ratio: An indicator used to measure the margin risk level of a current position or account. A higher margin ratio indicates a greater risk of forced liquidation. When the margin ratio reaches or exceeds 100%, the system will trigger forced liquidation. Users should closely monitor changes in the margin ratio to avoid forced liquidation caused by market fluctuations or insufficient margin.

Estimated Liquidation Price: A reference value calculated based on the current position and account conditions. Changes in margin, funding fees, other positions, and market conditions may cause this value to change.

Funding Rate and Funding Fee: The funding rate is the settlement rate, while the funding fee is the actual amount paid or received, calculated based on factors such as the position value at the time of settlement. It is different from trading fees.

 

Closing a Position: Reducing or fully closing an existing position by placing a closing order. Closing a long position involves selling, while closing a short position involves buying. Always verify whether the interface indicates an opening or closing action.

Realized PnL: The profit or loss resulting from the portion of a position that has been closed. Check the field descriptions to determine whether the recorded amount includes trading fees and funding fees, so as to avoid deducting or adding them twice.

Average Execution Price and Slippage: An order may be filled through multiple trades at different prices, resulting in an average execution price. The difference between the actual execution price and the expected reference price is known as slippage.

Forced Liquidation: When an account or position fails to meet the platform's risk requirements, such as maintenance margin requirements, the system reduces or closes the position in accordance with the applicable rules. This is not a stop-loss order manually set by the user.

 

Before checking any amount, distinguish between 「margin」, 「position value」, and 「quantity」. Before assessing returns, distinguish between 「amount」 and 「return rate」, and check whether fees have been deducted. Changing the leverage on the same position does not directly change the monetary amount of PnL resulting from the same price movement in proportion to the leverage.