In Flipster's trading platform, understanding the differences between Margin and Position Size can allow users to shape trading strategies and outcomes.
Users are able to place orders through Flipster’s order zone using 2 methods:
- Margin
- User is able to dictate the margin taken from margin balance to open the position
- Pros: Offers precise control over the margin allocated for each trade.
- Cons: The quantity of contracts fluctuates based on the opening price
- Position Size
- User is able to dictate the contract quantity
- Pros: Provides a stable, fixed quantity for each trade, offering clarity and consistency
- Cons: The position margin taken to open the position is inconsistent, especially during times of market volatility as there is no control over the executed price. This potentially leads to order rejection if there is insufficient margin balance.
Note:
- Both Margin and Position Size are supported on the Flipster webpage trading
- Only Margin is supported on the Flipster mobile application.
Below are examples and definitions of what users can expect in the order zone:
- Market order
- The function allows users to buy or sell at the best available price.
A. Market order with Margin
Market Price : Instantly buy or sell at the best available price
Leverage : Able to adjust leverage based on the user's trading strategy
Margin: The initial amount of collateral required to open a position
Quantity: Estimate total order quantity
Buy-Long: To use this when entering a long position.
Sell-Short: To use this when entering a short position.
Order size: Position value of the current order
Max Order size: Maximum position value of individual order
Est. liquidation price: 2 price indications, based on long and short orders
B. Market order with Position Size
Market Price : Instantly buy or sell at the best available price
Leverage : Able to adjust leverage based on the user's trading strategy
Position Size: Allows user to set the preferred quantity to open a position
Margin: Indicates a real-time fluctuating margin based on best available price
Buy-Long: To use this when entering a long position
Sell-Short: To use this when entering a short position
Order size: Position value of the current order
Max Order size: Maximum position value of individual order
Est. liquidation price: 2 price indications, based on long and short orders
- Trigger order
- This function allows users to set a trigger price at which the market price has to reach before executing a market order.
A. Trigger order with Margin
Trigger Price : Set a specific price at which the market price has to reach before executing a market order
Leverage : Able to adjust leverage based on the user's trading strategy
Margin: The initial amount of collateral required to open a position
Quantity: Estimate total order quantity
Buy-Long: To use this when entering a long position.
Sell-Short: To use this when entering a short position.
Order size: Position value of the current order
Max Order size: Maximum position value of individual order
Est. liquidation price: 2 price indications, based on long and short orders
B. Trigger Order with Position Size
Trigger Price : Set a specific price at which the market price has to reach before executing a market order
Leverage : Able to adjust leverage based on the user's trading strategy
Margin: The initial amount of collateral required to open a position
Quantity: Estimate total order quantity
Buy-Long: To use this when entering a long position.
Sell-Short: To use this when entering a short position.
Order size: Position value of the current order
Max Order size: Maximum position value of individual order
Est. liquidation price: 2 price indications, based on long and short orders
Calculation of Margin and Position Size
The formula to calculate the cost required to open a position is as such:
Margin:
Position Margin = Margin Balance input in the order zone
Position Size:
Position Margin = Quantity x Opening Price / Leverage
Placing of orders
Placing Market Orders using [Margin]:
Step 1: Click on [Market]
Step 2: Choose the Leverage
Step 3: Select [Margin]
Step 4: Input the margin balance under [Margin]
Step 5: Execute the order by clicking either on Long or Short (depending on your trading direction)
Placing Trigger Orders using [Margin]
Step 1: Click on [Trigger]
Step 2: Indicate the Trigger Price
Step 3: Choose the Leverage
Step 4: Select [Margin]
Step 5: Input the margin balance under [Margin]
Step 6: Execute the order by clicking either on Long or Short (depending on your trading direction)
Placing Market Orders using [Position Size]:
Step 1: Click on [Market]
Step 2: Choose the Leverage
Step 3: Select [Position Size]
Step 4: Input the contract quantity under [Position Size]
Step 5: Execute the order by clicking either on Long or Short (depending on your trading direction)
Note: Price of the symbol will fluctuate in real-time under [Position Size - USDT]. However, the final executed price may differ due to market volatility.
Placing Trigger Orders using [Position Size]:
Step 1: Click on [Trigger]
Step 2: Indicate the Trigger Price
Step 3: Choose the Leverage
Step 4: Select [Position Size]
Step 5: Input the contract quantity or price under [Position Size]
Step 6: Execute the order by clicking either on Long or Short (depending on your trading direction)
Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.