In Flipster's trading platform, understanding the differences between Margin and Position Size, as well as how the Position Bracket System affects your trades, allows users to optimize trading strategies and manage risk effectively.
Note:
- Margin may be displayed as USDT or USD1 depending on the chosen quote currency.
- Users who have a Trading Bonus may use it as margin for up to 50% of the total position margin.
- Under the Position Bracket System, each position falls into a bracket based on its notional size. The bracket determines:
- Maximum allowable leverage
- Maintenance margin rate
- Maintenance amount
Order Zone: Margin vs Position Size
Users can place orders in Flipster’s order zone using two methods:
1. Margin
- Definition: Users dictate the amount of margin to allocate from their account to open a position.
- Pros: Offers precise control over the margin allocated for each trade.
- Cons: The resulting position size varies depending on the opening price and leverage.
2. Position Size
- Definition: Users dictate the number of contracts to open a position.
- Pros: Provides a stable, fixed contract quantity for each trade.
- Cons: Margin required fluctuates depending on market price and may increase if the position moves into a higher position bracket, potentially leading to order rejection if there is insufficient margin balance.
Examples of Orders
Market Order
- The function allows users to buy or sell at the best available price.
A. Placing Market Orders using Margin
- Market Price: Instantly buy/sell at the best available price.
- Leverage: Adjustable; capped by the current position bracket.
- Margin: Initial collateral required to open the position.
- Quantity: Estimated total order quantity based on margin and leverage.
- Order Size: Position value of the current order.
- Max Order Size: Maximum position size allowed under the Position Bracket System.
- Est. Liquidation Price: Calculated using the maintenance margin corresponding to the bracket.
B. Placing Market Orders using Position Size
- Position Size: Sets the desired contract quantity.
- Margin: Adjusts in real time depending on the executed price and bracket requirements.
- Leverage: Limited by the bracket for the given position size.
- Order Size & Max Order Size: Reflects the bracket rules.
- Est. Liquidation Price: Uses maintenance margin based on the bracket system.
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. Placing Trigger Orders using 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
- Margin and bracket rules still apply.
B. Placing Trigger Orders using 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
- Margin required updates based on executed price and bracket.
- Leverage is capped according to the Position Bracket System.
Limit Order
- Allows users to buy or sell an asset at a specific price or better. The order will only execute if the market reaches your set price, giving you control over the entry or exit price but not guaranteeing immediate execution.
A. Placing Limit Orders using Margin
- Limit Price: The specified price the user wishes to buy or sell
- BBO: The limit price will follow the best ask when buying and the best bid when selling
- 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
- Reduce Only (Available in One-Way Mode): If the order is filled, it will decrease an existing position. If the order increases the position size, the order will be canceled.
- Buy-Long: To use this when entering a long position.
- Sell-Short: To use this when entering a short position.
- Order value: Position value of the current order
- Max Order Value: Maximum position value of individual order
- Est. liquidation price: 2 price indications, based on long and short orders
- Trading Fee: The trading fee percentage applies to the position
- Leverage must comply with the maximum allowed for the bracket corresponding to the resulting position size.
B. Placing Limit Orders using Position Size
- Limit Price: The specified price the user wishes to buy or sell
- Leverage: Able to adjust leverage based on the user's trading strategy
- Position Size: Allows the user to set the preferred quantity to open a position
- Margin: Indicates a real-time fluctuating margin based on the best available price
- Reduce Only (Available in One-Way Mode): If the order is filled, it will decrease an existing position. If the order increases the position size, the order will be canceled.
- Buy-Long: To use this when entering a long position
- Sell-Short: To use this when entering a short position
- Order value: Position value of the current order
- Max Order value: Maximum position value of individual order
- Est. liquidation price: 2 price indications, based on long and short orders
- Trading Fee: The trading fee percentage applies to the position
- Margin fluctuates based on executed price and position bracket.
- Position bracket defines max leverage and maintenance margin.
Calculation of Margin and Position Size
The formula to calculate the cost required to open a position is as follows:
Margin:
Position Margin = Margin Balance input in the order zone
Position Size:
Position Margin = Quantity x Opening Price / Leverage
Note:
- Under the Position Bracket System, leverage and maintenance margin are determined by the notional value of the position.
- Adding size may push your position into a higher bracket, requiring more maintenance margin and reducing max leverage.
Placing 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)
Placing Limit Orders using Margin
Step 1: Click on [Limit]
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 Limit Orders using Position Size
Step 1: Click on [Limit]
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)
Key Notes on Position Bracket System
- Maximum Leverage: Determined by the bracket corresponding to the position size.
- Maintenance Margin: Calculated per bracket; larger positions may move to higher brackets, increasing required margin.
- Adding Size: Users may only reduce leverage to stay within the current bracket. Adding margin will not allow increasing the position size beyond the bracket limit.
Order Rejection: Can occur if margin is insufficient for the position bracket.
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.